What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2024-02-07 compared with 2023-02-03 · 399 added, 333 removed, 2464 unchanged (23% of the section changed)

15 unchanged sentences

Other Information.

During the three months ended December 31, 2023, no director or officer of the Company adopted , modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

69 unchanged sentences

2014 Stock Plan for Non-Employee Directors (b) Filed as Exhibit 10-C to our Annual Report on Form 10-K for the year ended December 31, 2013.

Designation Description Method of Filing

Benefit Equalization Plan, as amended and restated effective as of January 1, 2022.

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(b) Filed as Exhibit 10-K-1 to our Annual Report on Form 10-K for the year ended December 31, 2013.

Agreement between Ford Motor Company and Jon M.

Huntsman, Jr.

dated April 12, 2021.

(b) Filed as Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

Offer Letter to Michael Amend dated August 16, 2021.

(b) Filed as Exhibit 10-M to our Annual Report on Form 10-K for the year ended December 31, 2021.

Offer Letter to Peter Stern dated July 21, 2023.

(b) Filed with this Report.

Exhibit 10- M

Offer Letter to Doug Field dated August 26, 2021.

(b) Filed as Exhibit 10-N to our Annual Report on Form 10-K for the year ended December 31, 2021.

Exhibit 10- N

Agreement between Ford Motor Company and James D.

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(b) Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

Exhibit 10- O

Select Retirement Plan, as amended and restated effective as of January 1, 2018.

(b) Filed as Exhibit 10.4 to our Current Report on Form 8-K filed February 7, 2018.

Exhibit 10- P

Deferred Compensation Plan, as amended and restated as of December 31, 2010.

(b) Filed as Exhibit 10-M to our Annual Report on Form 10-K for the year ended December 31, 2010.

Exhibit 10-Q-1

Exhibit 10- P -1

Suspension of Open Enrollment in Deferred Compensation Plan.

(b) Filed as Exhibit 10-M-1 to our Annual Report on Form 10-K for the year ended December 31, 2009.

Annual Incentive Compensation Plan, as amended and restated effective as of January 1, 2023.

(b) Filed with this Report.

Exhibit 10-R- 1

Exhibit 10- Q

Annual Performance Bonus Plan, as amended May 10, 2023.

(b) Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Designation Description Method of Filing

Exhibit 10- Q -1

Annual Incentive Compensation Plan Metrics for 2022.

(b) Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

Exhibit 1 0-R- 2

Annual Incentive Compensation Plan Metrics for 2022.

Exhibit 10- Q -2

Annual Performance Bonus Plan Metrics for 2023.

(b) Filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

Exhibit 10-R- 3

Exhibit 10- Q -3

Performance-Based Restricted Stock Unit Metrics for 2020.

(b) Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

Exhibit 10-R- 4

Exhibit 10- Q -4

Performance-Based Restricted Stock Unit Metrics for 2021.

(b) Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

Exhibit 10-R- 5

Exhibit 10- Q -5

Performance-Based Restricted Stock Unit Metrics for 2022.

(b) Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

Exhibit 10-R- 6

Exhibit 10- Q -6

Performance-Based Restricted Stock Unit Metrics for 2023.

(b) Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

Exhibit 10-Q-7

Corporate Officer Compensation Recoupment Policy.

(b) Filed with this Report.

Exhibit 10- R

Executive Compensation Recoupment Policy.

(b) Filed as Exhibit 10-N-8 to our Annual Report on Form 10-K for the year ended December 31, 2010.

2018 Long-Term Incentive Plan.

(b) Filed as Exhibit 4.1 to Registration Statement No.

2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 4.9 to Registration Statement No.

Exhibit 10-S-1

Form of Stock Option Terms and Conditions for 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10.4 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

(b) Filed as Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-2

Form of Stock Option Agreement for 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10-P-3 to our Annual Report on Form 10-K for the year ended December 31, 2017.

(b) Filed as Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-3

Form of Stock Option Agreement (ISO) for 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10-P-4 to our Annual Report on Form 10-K for the year ended December 31, 2017.

(b) Filed as Exhibit 10.4 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-4

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NQO) for 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10-P-5 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Designation Description Method of Filing

(b) Filed as Exhibit 10.5 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-5

Form of Stock Option (U.K.) Terms and Conditions for 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10-R-5 to our Annual Report on Form 10-K for the year ended December 31, 2020.

(b) Filed as Exhibit 10.6 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-6

Form of Restricted Stock Grant Letter.

(b) Filed as Exhibit 10-P-7 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of Restricted Stock Grant Letter for 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10.7 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-7

Form of Final Award Notification Letter for Performance-Based Restricted Stock Units.

(b) Filed as Exhibit 10-P-8 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of Final Award Notification Letter for Performance Stock Units.

(b) Filed as Exhibit 10.8 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-8

Form of Annual Equity Grant Letter V.1.

(b) Filed as Exhibit 10-P-9 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of Annual Equity Grant Letter for 2023 Long-Term Incentive Plan V.1.

(b) Filed as Exhibit 10.9 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-9

Form of Annual Equity Grant Letter V.2.

(b) Filed as Exhibit 10-P-10 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of Annual Equity Grant Letter for 2023 Long-Term Incentive Plan V.2.

(b) Filed as Exhibit 10.10 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-10

Form of 2023 Long-Term Incentive Plan Restricted Stock Unit Agreement.

(b) Filed as Exhibit 10-P-11 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Exhibit 10-S-11

Form of Long-Term Incentive Plan Retention Restricted Stock Unit Agreement (b) Filed as Exhibit 10-S-11 to our Annual Report on Form 10-K for the year ended December 31, 2021.

(b) Filed as Exhibit 10.11 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-11

Long-Term Incentive Plan Restricted Stock Unit Terms and Conditions.

(b) Filed as Exhibit 10-P-12 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of 2023 Long-Term Incentive Plan Restricted Stock Unit Terms and Conditions.

(b) Filed as Exhibit 10.12 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-12

Form of Final Award Agreement for Performance-Based Restricted Stock Units under Long-Term Incentive Plan.

(b) Filed as Exhibit 10-P-13 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of Final Award Agreement for Performance Stock Units under 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10.13 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-13

Form of Final Award Terms and Conditions for Performance-Based Restricted Stock Units under Long-Term Incentive Plan.

(b) Filed as Exhibit 10-P-14 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Form of Final Award Terms and Conditions for Performance Stock Units under 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10.14 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Exhibit 10-S-14

Form of Notification Letter for Time-Based Restricted Stock Units.

(b) Filed as Exhibit 10-P-15 to our Annual Report on Form 10-K for the year ended December 31, 2017.

Exhibit 10- T

Form of Notification Letter for Time-Based Restricted Stock Units under 2023 Long-Term Incentive Plan.

(b) Filed as Exhibit 10.15 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

Description of Company Practices regarding Club Memberships for Executives.

(b) Filed as Exhibit 10-V to our Annual Report on Form 10-K for the year ended December 31, 2021.

Exhibit 10- U

Amended and Restated Credit Agreement dated as of November 24, 2009.

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Filed as Exhibit 10.1 to our Current Report on Form 8-K filed May 1, 2015.

Designation Description Method of Filing

Exhibit 10-U-5

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Filed as Exhibit 10.1 to our Current Report on Form 8-K filed July 30, 2020.

Designation Description Method of Filing

Exhibit 10-U-10

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Exhibit 10-U-12

Nineteenth Amendment dated as of June 23, 2022 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, as amended and restated as of April 30, 2015, and as further amended, including the Fourth Amended and Restated Credit Agreement.

Nineteenth Amendment dated as of June 23, 2022 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, as amended and restated as of April 30, 2015, as amended and restated as of September 29, 2021, and as further amended.

Filed as Exhibit 10.1 to our Current Report on Form 8-K filed June 23, 2022.

Exhibit 10- V

Exhibit 10-U-13

Twentieth Amendment dated as of April 26, 2023 to our Credit Agreement dated as of December 15, 2006, as amended and restated as of November 24, 2009, as amended and restated as of April 30, 2014, as amended and restated as of April 30, 2015, as amended and restated as of September 29, 2021, and as further amended.

Filed as Exhibit 10.1 to our Current Report on Form 8-K filed April 26, 2023.

Revolving Credit Agreement dated as of April 23, 2019.

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Exhibit 10-V-4

Fourth Amendment dated June 23, 2022 to the Revolving Credit Agreement dated April 23, 2019, and as further amended, including the First Amended and Restated Revolving Credit Agreement.

Fourth Amendment dated June 23, 2022 to the Revolving Credit Agreement dated April 23, 2019, as amended and restated as of September 29, 2021, and as further amended.

Filed as Exhibit 10.2 to our Current Report on Form 8-K filed June 23, 2022.

Exhibit 10- W

Exhibit 10-V-5

Fifth Amendment dated April 26, 2023 to the Revolving Credit Agreement dated April 23, 2019, as amended and restated as of September 29, 2021, and as further amended.

Filed as Exhibit 10.2 to our Current Report on Form 8-K filed April 26, 2023.

364-Day Revolving Credit Agreement dated as of June 23, 2022.

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Filed as Exhibit 10 to our Current Report on Form 8-K filed October 28, 2022.

Exhibit 10-W-2

Second Amendment dated April 26, 2023 to the 364-Day Revolving Credit Agreement dated as of June 23, 2022.

Filed as Exhibit 10.3 to our Current Report on Form 8-K filed April 26, 2023.

List of Subsidiaries of Ford as of January 31, 2024.

Filed with this Report.

Designation Description Method of Filing

Consent of Independent Registered Public Accounting Firm.

10 unchanged sentences

Furnished with this Report.

Financial Statement Compensation Recoupment Policy.

(b) Filed with this Report.

Exhibit 101.INS Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language (“Inline XBRL”).

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Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Change in Accounting Principle

As discussed in Note 10 to the consolidated financial statements, the Company changed the manner in which it accounts for credit losses in 2020.

Basis for Opinions

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Other amortization ( 1,358 ) ( 1,149 ) ( 1,167 )

Held-for-sale impairment charges (Note 22)

Brazil manufacturing exit non-cash charges (excluding accelerated depreciation of $ 145 , $ 322 , and $ 17 ) (Note 21)

1,159 48 ( 82 )

(Gains)/Losses on extinguishment of debt (Note 5 and Note 19)

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Stock compensation (Note 6)

Provision for deferred income taxes ( 269 ) ( 563 ) ( 1,910 )

Provision for/(Benefit from) deferred income taxes ( 563 ) ( 1,910 ) ( 1,649 )

Decrease/(Increase) in finance receivables (wholesale and other) 7,656 ( 10,560 ) ( 4,827 )

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Proceeds from sale of business (Note 22)

1,340 145 449

Purchases of marketable securities and other investments ( 27,491 ) ( 17,458 ) ( 8,590 )

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2021 2022 2023

Automotive $ 115,894 $ 126,150 $ 148,980

Company Excluding Ford Credit $ 126,268 $ 149,079 $ 165,901

Ford Credit 10,073 8,978 10,290

Mobility 47 118 99

Total revenues (Note 4) 136,341 158,057 176,191

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Inventories (Note 11) 14,080 15,651

Assets held for sale (Note 22)

Other assets 3,877 3,633

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Balance at December 31, 2020 $ 41 $ 22,290 $ 18,243 $ ( 8,294 ) $ ( 1,590 ) $ 30,690 $ 121 $ 30,811

Adoption of accounting standards

— — ( 202 ) — — ( 202 ) — ( 202 )

Net income/(loss) — — 17,937 — — 17,937 ( 27 ) 17,910

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(a) Includes impacts of share-based compensation.

(b) We declared dividends per share of Common and Class B Stock of $ 0.15 and $ 0.10 in 2020 and 2021, respectively, and in 2022, $ 0.10 per share in the first and second quarter and $ 0.15 per share in the third and fourth quarter.

(b) We declared dividends per share of Common and Class B Stock of $ 0.10 , $ 0.50 , and $ 1.25 in 2021, 2022 and 2023, respectively.

In the first quarter of 2023, in addition to a regular dividend of $ 0.15 per share, we declared a supplemental dividend of $ 0.65 per share.

On February 6, 2024, we declared a regular dividend of $ 0.15 per share and a supplemental dividend of $ 0.18 per share.

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We reclassified certain prior year amounts in our consolidated financial statements to conform to the current year presentation.

Certain Transactions Between Automotive, Mobility, and Ford Credit

Intersegment transactions occur in the ordinary course of business.

Additional detail regarding certain transactions and the effect on each segment at December 31 was as follows (in billions):

Automotive Mobility Ford Credit Automotive Mobility Ford Credit

Certain Transactions with Ford Credit

Transactions between Ford Credit and our other segments occur in the ordinary course of business.

Additional detail regarding certain of those transactions is below (in billions):

December 31, 2022 December 31, 2023

Balance Sheet

Trade and other receivables (a) $ 10.6 $ 9.2

Unearned interest supplements and residual support (b) ( 3.4 ) ( 4.6 )

Finance receivables and other (c) 1.2 1.3

Intersegment receivables/(payables) $ ( 1.4 ) $ — 1.4 $ ( 1.5 ) $ — 1.5

(a) Automotive receivables (generated primarily from vehicle and parts sales to third parties) sold to Ford Credit.

(b) Automotive pays amounts to Ford Credit at the point of retail financing or lease origination, which represent interest supplements and residual support.

(c) Primarily receivables with entities that are consolidated subsidiaries of Ford, including a sale-leaseback agreement between Automotive and Ford Credit relating primarily to vehicles that we lease to our employees.

Other (c) 1.3 1.6

(a) Ford Blue, Ford Model e, and Ford Pro receivables (generated primarily from vehicle and parts sales to third parties) sold to Ford Credit.

(b) Ford Blue, Ford Model e, and Ford Pro pay amounts to Ford Credit at the point of retail financing or lease origination, which represent interest supplements and residual support.

(c) Includes a sale-leaseback agreement between Ford Blue and Ford Credit relating primarily to vehicles that we lease to our employees.

See Note 2 for additional information regarding our finance and lease incentives between Ford Credit and our other segments.

FORD MOTOR COMPANY AND SUBSIDIARIES

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If a credit loss allowance is necessary, we will record an allowance, limited by the amount that fair value is less than the amortized cost basis, and recognize the corresponding charge in Other income/(loss), net .

Factors we consider include the severity of the impairment, the reason for the decline in value, interest rate changes, and counterparty long-term ratings.

Factors we consider include the severity and reason for the decline in value, interest rate changes, and counterparty long-term ratings.

Trade, Notes, and Other Receivables

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Trade and notes receivables are written off against the allowance for credit losses when the account is deemed to be uncollectible.

The carrying value of trade, notes, and other receivables was $ 15.9 billion and $ 16.4 billion at December 31, 2022 and 2023, respectively.

The credit loss reserve included in the carrying value of trade, notes, and other receivables was $ 105 million and $ 86 million at December 31, 2022 and 2023, respectively.

Net Intangible Assets and Goodwill

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The carrying amount of intangible assets and goodwill is reported in Other assets in the non-current assets section of our consolidated balance sheets.

Intangible assets are comprised primarily of advertising agreements, land rights, and technology licenses.

Intangible assets are comprised primarily of advertising agreements and land rights .

The net carrying amount of our intangible assets was $ 86 million and $ 80 million at December 31, 2022 and 2023, respectively.

For the periods presented, we have not recorded any material impairments for indefinite-lived intangibles.

The net carrying amount of goodwill was $ 603 million and $ 683 million at December 31, 2022 and 2023, respectively.

In 2021, we fully impaired goodwill for two investments in our Mobility segment.

In 2022, we have not recorded any impairments for goodwill.

For the periods presented, we did not record any material impairments for indefinite-lived intangibles or goodwill.

FORD MOTOR COMPANY AND SUBSIDIARIES

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When discounted cash flow models are used, projected future cash flows are discounted to a present value using market-based expectations for interest rates, foreign exchange rates, commodity prices, and the contractual terms of the derivative instruments.

The discount rate used is the relevant benchmark interest rate (e.g., LIBOR, SOFR, SONIA) plus an adjustment for non-performance risk.

The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements and any posted collateral.

The discount rate used is the relevant benchmark interest rate (e.g., SOFR, SONIA) plus an adjustment for non-performance risk.

The adjustment reflects the full credit default swap (“CDS”) spread applied to a net exposure, by counterparty, considering the master netting agreements we have entered into and any posted collateral.

We use our counterparty’s CDS spread when we are in a net asset position and our own CDS spread when we are in a net liability position.

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pension plans (see Note 17).

Generally, the contract valuation method is applied for markets where we have purchased non-participating annuity contracts from an insurer as a plan asset.

The Ford-Werke GmbH (“Ford-Werke”) defined benefit plan is primarily funded through a participating group insurance contract.

For the Ford-Werke plan, we measure the fair value of the insurance asset by projecting expected future cash flows from the contract and discounting them to present value based on current market rates as well as an assessment for non-performance risk of the insurance company.

The assumptions used to project expected future cash flows are based on actuarial estimates and are unobservable.

Generally, the contract valuation method is applied for markets where we have purchased annuity contracts from an insurer as a plan asset.

We measure the fair value of the insurance asset by projecting expected future cash flows from the contract and discounting them to present value based on current market rates.

The assumptions used to project expected future cash flows are based on actuarial estimates.

We include all annuity contracts within Level 3 of the hierarchy.

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Ford Credit records a reduction to the finance receivable or reduces the cost of the vehicle operating lease when it records the underlying finance contract, and we transfer to Ford Credit the amount of the incentive on behalf of the dealer’s customer.

See Note 1 for additional information regarding transactions between Automotive and Ford Credit.

See Note 1 for additional information regarding transactions between Ford Credit and our other segments.

The Ford Credit segment recognized interest revenue of $ 2.4 billion, $ 2.1 billion, and $ 2.3 billion in 2021, 2022, and 2023, respectively, and lower depreciation of $ 1.9 billion, $ 1.2 billion, and $ 0.9 billion in 2021, 2022, and 2023, respectively, associated with these incentives.

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governmental entities in the form of tax rebates or credits, grants, and loans.

Government incentives are recorded in our consolidated financial statements in accordance with their purpose as a reduction of expense or other income.

Government incentives are recorded in our consolidated financial statements in accordance with their purpose as a reduction of expense or as other income.

The benefit is generally recorded when all conditions attached to the incentive have been met and there is reasonable assurance of receipt.

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These incentives are available until December 2051.

The fair value of the land benefit in 2022 was $ 144 million and was recorded in Net Property fully offset by the value of the incentive.

A capital grant of $ 285 million is expected to be received in 2023 and will reduce the depreciation and amortization expense over the life of the related assets.

The fair value of the land in 2022 was $ 144 million and was recorded in Net Property fully offset by the value of the incentive.

A capital grant of $ 285 million was received in 2023 and will be recognized as a reduction to depreciation and amortization expense over the life of the related assets.

In 2022, we were also awarded incentives by the Canadian government and Province of Ontario in connection with the development of electric vehicles at our Oakville Assembly Plant.

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Claw back provisions are monitored for ongoing compliance and are accrued for when losses are deemed probable and estimable (see Note 25).

Employee Bonus and Lump-Sum Payments

Effective November 20, 2023, we entered into a new agreement with the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”) covering approximately 59,000 employees in the United States.

The agreement established wages and benefits for covered employees over a four-and-a-half year period through April 30, 2028.

The agreement also provided for a lump-sum ratification bonus of $ 5,000 per employee, which was paid in the fourth quarter of 2023.

In addition, we entered into a new three -year agreement on September 25, 2023 with Unifor covering approximately 5,600 employees in Canada.

The agreement included a Productivity and Quality bonus of C$ 10,000 for full-time employees and C$ 4,000 for temporary part-time employees upon signing of the contract.

Lump-sum cash bonuses paid in connection with ratifying a union contract are recognized in the period that the contract negotiations are finalized and approved by its members.

We recorded approximately $ 400 million in Cost of sales related to these bonuses for the year ended December 31, 2023.

Selected Other Costs

Engineering, research, and development expenses are reported in Cost of sales and primarily consist of salaries, materials, and associated costs.

Engineering, research, and development expenses are primarily reported in Cost of sales and consist of salaries, materials, and associated costs.

Engineering, research, and development costs are expensed as incurred when performed internally or when performed by a supplier if we guarantee reimbursement.

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Adoption of New Accounting Standards

Accounting Standards Update (“ASU”) 2021-10, Government Assistance:

Disclosures by Business Entities about Government Assistance.

Effective January 1, 2022, we adopted the new standard, which requires entities to provide certain disclosures in annual period financial statements for those transactions with governments that are accounted for by applying a grant or contribution accounting model via analogy to other applicable accounting standards.

Adoption of the new standard did not have a material impact to our consolidated financial statement disclosures.

Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses, Troubled Debt Restructurings and Vintage Disclosures.

Effective January 1, 2023, we adopted the new standard, which eliminates the troubled debt recognition and measurement guidance and requires disclosure of current-period gross charge-offs by year of origination (vintage disclosure).

Adoption of the new standard did not have a material impact to our consolidated financial statements or financial statement disclosures.

ASU 2022-04, Liabilities – Supplier Finance Programs, Disclosure of Supplier Finance Program Obligations.

Effective January 1, 2023, we adopted the new standard, which requires that entities that use supplier finance programs disclose information about the nature and potential magnitude of the programs, activity during the period, and changes from period to period.

Financial institutions participate in a supply chain finance (“SCF”) program that enables our suppliers, at their sole discretion, to sell their Ford receivables (i.e., our payment obligations to the suppliers) to the financial institutions on a non-recourse basis in order to be paid earlier than our payment terms provide.

Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms, the amounts we pay, or our liquidity.

We have no economic interest in a supplier’s decision to participate in the SCF program, and we do not provide any guarantees in connection with it.

The outstanding amount of Ford receivables that suppliers elected to sell to the SCF financial institutions, reported in Payables , was $ 253 million and $ 220 million at December 31, 2022 and 2023, respectively.

The amount settled through the SCF program during 2023 was $ 1.8 billion.

We also adopted the following ASUs during 2023, none of which had a material impact to our consolidated financial statements or financial statement disclosures:

ASU Effective Date

2021-04 Issuer’s Accounting for Certain Modifications or Exchanges of Warrants January 1, 2022

2021-05 Lessors - Certain Leases with Variable Lease Payments January 1, 2022

2021-08 Business Combinations:

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers January 1, 2022

2022-06 Reference Rate Reform:

Deferral of the Sunset Date of Topic 848 December 21, 2022

2022-01 Derivatives and Hedging – Fair Value Hedging – Portfolio Layer Hedging

January 1, 2023

2022-03 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions January 1, 2023

2018-12 Targeted Improvements to the Accounting for Long Duration Contracts (and related amendments) January 1, 2023

2023-03 Amendments to SEC Paragraphs Pursuant to SEC Bulletins & Announcements July 14, 2023

2023-04 Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

121 August 3, 2023

Accounting Standards Issued But Not Yet Adopted

ASU 2022-02, Financial Instruments – Credit Losses, Troubled Debt Restructurings and Vintage Disclosures.

In March 2022, the FASB issued a new accounting standard that eliminates the troubled debt recognition and measurement guidance.

The new standard requires that an entity apply the loan refinancing and restructuring guidance in ASC 310 to all loan modifications and/or receivable modifications.

It also enhances disclosure requirements for certain refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requires disclosure of current-period gross charge-offs by year of origination in the vintage disclosure.

The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022.

The adoption of the new standard is not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

All other ASUs issued but not yet adopted were assessed and determined to be either not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures.

In November 2023, the FASB issued a new accounting standard related to disclosures about a public entity’s reportable segments and provides more detailed information about a reportable segment’s expenses.

The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with retrospective application required.

We are assessing the effect on our annual consolidated financial statement disclosures;

however, adoption will not impact our consolidated balance sheets or income statements.

ASU 2023-09, Improvements to Income Tax Disclosures .

In December 2023, the FASB issued a new accounting standard to enhance the transparency and decision usefulness of income tax disclosures.

The new standard is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted.

We are assessing the effect on our annual consolidated financial statement disclosures;

however, adoption will not impact our consolidated balance sheets or income statements.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

FORD MOTOR COMPANY AND SUBSIDIARIES

55 unchanged sentences

We adjust our estimate of revenue at the earlier of when the value of consideration we expect to receive changes or when the consideration becomes fixed.

As a result of changes in our estimate of marketing incentives, we recorded a decrease in revenue of $ 973 million during 2020 and an increase in revenue of $ 252 million and $ 209 million during 2021 and 2022, respectively, related to revenue recognized in prior annual periods.

We have elected to recognize the cost for freight and shipping when control over vehicles, parts, or accessories have transferred to the customer as an expense in Cost of sales .

As a result of changes in our estimate of marketing incentives, we recorded an increase in revenue of $ 252 million and $ 209 million during 2021 and 2022, respectively, and a decrease in revenue of $ 147 million during 2023 related to revenue recognized in prior annual periods.

We have elected to recognize the cost for freight and shipping when control over vehicles, parts, or accessories has transferred to the customer as an expense in Cost of sales .

We sell vehicles to daily rental companies and may guarantee that we will pay them the difference between an agreed amount and the value they are able to realize upon resale.

21 unchanged sentences

REVENUE (Continued)

We also receive other revenue related to vehicle-related design and testing services we perform for others, various Mobility operations, and net commissions for serving as the agent in facilitating the sale of a third party’s products or services to our customers.

We have applied the practical expedient to recognize Automotive revenues for vehicle-related design and testing services over the two to three year term of these agreements in proportion to the amount we have the right to invoice.

We also receive other revenue related to vehicle-related design and testing services we perform for others, various Ford Next operations, and net commissions for serving as the agent in facilitating the sale of a third party’s products or services to our customers.

We have applied the practical expedient to recognize Company excluding Ford Credit revenues for vehicle-related design and testing services over the two to three year term of these agreements in proportion to the amount we have the right to invoice.

Leasing Income.

We sell vehicles to daily rental companies with an obligation to repurchase the vehicles for a guaranteed amount, exercisable at the option of the customer.

We sell vehicles to daily rental companies with an obligation to repurchase the vehicles at an agreed upon amount, exercisable at the option of the customer.

The transactions are accounted for as operating leases.

Upon the transfer of vehicles to the daily rental companies, we record proceeds received in Other liabilities and deferred revenue.

The difference between the proceeds received and the guaranteed repurchase amount is recorded in Company excluding Ford Credit revenues over the term of the lease using a straight-line method.

The difference between the proceeds received and the agreed upon repurchase amount is recorded in Company excluding Ford Credit revenues over the term of the lease using a straight-line method.

The cost of the vehicle is recorded in Net investment in operating leases on our consolidated balance sheets and the difference between the cost of the vehicle and the estimated auction value is depreciated in Cost of sales over the term of the lease.

28 unchanged sentences

Total $ 14,733 $ ( 5,150 ) $ ( 603 )

(a) Includes a $ 9.1 billion gain and $ 7.4 billion loss on our Rivian investment during the year ended December 31, 2021 and December 31, 2022, respectively.

(a) Includes a $ 9.1 billion gain, $ 7.4 billion loss, and $ 31 million loss on our Rivian investment during the years ended December 31, 2021, 2022, and 2023, respectively.

FORD MOTOR COMPANY AND SUBSIDIARIES

6 unchanged sentences

Granted RSUs generally cliff vest or ratably vest over a three-year service period.

Performance-based RSUs have two components:

one based on internal financial performance metrics and the other based on total shareholder return relative to an industrial and automotive peer group.

Performance-based RSUs can be based on internal financial performance metrics or total shareholder return relative to a peer group or a combination of the two metrics.

At the time of vest, RSU awards are net settled (i.e., shares are withheld to cover the employee tax obligation).

57 unchanged sentences

We account for U.S.

tax on global intangible low-taxed income in the period incurred.

tax on global intangible low-taxed income in the period incurred, and we account for investment tax credits using the deferral method.

Valuation of Deferred Tax Assets and Liabilities

38 unchanged sentences

Effective tax rate ( 0.7 ) % 28.6 % ( 9.1 ) %

(a) Includes a benefit of $ 2.9 billion to recognize deferred tax assets resulting from changes in our global tax structure in 2021.

During 2020, based on all available evidence, we established U.S.

valuation allowances of $ 1.3 billion, primarily against tax credits as it was deemed more likely than not that these deferred tax assets would not be realized.

In assessing the realizability of deferred tax assets, we consider the trade-offs between cash preservation and cash outlays to preserve tax credits.

In 2021, we reversed $ 918 million of the previously established U.S.

(a) 2021 includes a benefit of $ 2.9 billion to recognize deferred tax assets resulting from changes in our global tax structure;

2023 includes benefits of $ 610 million associated with legal entity restructuring within our leasing operations and China.

In 2021, we reversed $ 918 million of previously established U.S.

valuation allowances.

30 unchanged sentences

Net deferred tax assets/(liabilities) $ 14,003 $ 15,980

Deferred tax assets for net operating losses and other temporary differences related to certain non-U.S.

operations have not been recorded as a result of elections to tax these operations simultaneously in U.S.

During 2021, we restructured a significant portion of these operations resulting in recognition of $ 2.9 billion of net deferred tax assets.

Reversal of the remaining elections would result in the recognition of $ 4.3 billion and $ 4.2 billion of deferred tax assets, subject to valuation allowance testing, as of December 31, 2021 and 2022, respectively.

Operating loss carryforwards for tax purposes were $ 22 billion at December 31, 2023, resulting in a deferred tax asset of $ 7.3 billion.

2 unchanged sentences

Tax credits available to offset future tax liabilities are $ 8.9 billion.

The majority of these credits have a remaining carryforward period of six years or more.

The majority of these credits have a remaining carryforward period of nine years or more.

Tax benefits of operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and available tax planning strategies.

13 unchanged sentences

The amount of unrecognized tax benefits that would affect the effective tax rate if recognized was $ 2.9 billion as of December 31, 2022 and 2023.

Examinations by tax authorities have been completed through 2008 in Germany, 2014 in the United States, 2015 in Mexico, 2017 in Canada and China, 2018 in Spain and India, and 2019 in the United Kingdom.

Net interest on income taxes was $ 2 million of expense, $ 7 million of income, and $ 23 million of expense for the years ended December 31, 2020, 2021, and 2022, respectively.

Examinations by tax authorities have been completed through 2008 in Germany;

2014 in the United States;

2018 in Canada, China, Spain, and the United Kingdom;

and 2019 in India and Mexico.

Net interest on income taxes was $ 7 million of income, $ 23 million of expense, and $ 16 million of expense for the years ended December 31, 2021, 2022, and 2023, respectively.

These were reported in Other income/(loss), net on our consolidated income statements.

Net payables for tax related interest were $ 32 million and $ 17 million as of December 31, 2021 and 2022, respectively.

Tax-related interest was $ 17 million of a net payable and $ 25 million of a net receivable as of December 31, 2022 and 2023, respectively.

Cash paid for income taxes was $ 568 million, $ 801 million, and $ 1,027 million in 2021, 2022, and 2023, respectively.

18 unchanged sentences

Diluted shares 4,034 4,014 4,041

(a) In 2020 and 2022, there were 29 million and 42 million shares, respectively, excluded from the calculation of diluted earnings/(loss) per share, due to their anti-dilutive effect .

(a) In 2022, there were 42 million shares excluded from the calculation of diluted earnings/(loss) per share, due to their anti-dilutive effect.

FORD MOTOR COMPANY AND SUBSIDIARIES

8 unchanged sentences

government and agencies 2 1,048 199 1,247

Other cash equivalents 2 10 — 10

Corporate debt 2 593 792 1,385

18 unchanged sentences

government and agencies 2 699 276 975

Other cash equivalents 2 10 — 10

Corporate debt 2 1,617 101 1,718

12 unchanged sentences

Restricted cash $ 111 $ 137 $ 248

(a) Includes $ 10.6 billion and $ 194 million of Rivian common shares valued at $ 103.69 and $ 18.43 per share as of December 31, 2021 and 2022, respectively.

In 2022, we sold 91 million of our Rivian common shares for about $ 3 billion in total proceeds.

Net unrealized gains/losses recognized during 2021 and 2022 on all equity securities held at December 31, 2021 and 2022 were an $ 8.3 billion gain and a $ 968 million loss, respectively.

(a) Net unrealized gains/losses recognized during full year 2022 and 2023 on all equity securities held at December 31, 2022 and 2023 were a $ 968 million loss and a $ 23 million loss, respectively.

FORD MOTOR COMPANY AND SUBSIDIARIES

137 unchanged sentences

At December 31, 2022 and 2023, accrued interest was $ 187 million and $ 294 million, respectively, which we report in Other assets in the current assets section of our consolidated balance sheets.

Included in the recorded investment in finance receivables at December 31, 2021 and 2022 were consumer receivables of $ 39 billion and $ 43.9 billion, respectively, and non-consumer receivables of $ 12 billion and $ 18.2 billion, respectively, (including Automotive receivables sold to Ford Credit, which we report in Trade and other receivables ) that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements.

Included in the recorded investment in finance receivables at December 31, 2022 and 2023 were consumer receivables of $ 43.9 billion and $ 46.0 billion, respectively, and non-consumer receivables of $ 18.2 billion and $ 21.3 billion, respectively, (including Ford Blue, Ford Model e, and Ford Pro receivables sold to Ford Credit, which we report in Trade and other receivables ) that have been sold for legal purposes in securitization transactions but continue to be reported in our consolidated financial statements.

The receivables are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions;

4 unchanged sentences

When originating consumer receivables, Ford Credit uses a proprietary scoring system that measures credit quality using information in the credit application, proposed contract terms, credit bureau data, and other information.

After a proprietary risk score is generated, Ford Credit decides whether to originate a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information.

After a proprietary risk score is generated, Ford Credit decides whether to purchase a contract using a decision process based on a judgmental evaluation of the applicant, the credit application, the proposed contract terms, credit bureau information (e.g., FICO score), proprietary risk score, and other information.

The evaluation emphasizes the applicant’s ability to pay and creditworthiness focusing on payment, affordability, applicant credit history, and stability as key considerations.

30 unchanged sentences

Total $ 947 $ 2,423 $ 7,552 $ 11,473 $ 20,502 $ 35,377 $ 78,274 100.0 %

Gross charge-offs $ 47 $ 40 $ 75 $ 85 $ 117 $ 37 $ 401

Non-Consumer Portfolio

Ford Credit extends credit to dealers primarily in the form of lines of credit to purchase new Ford and Lincoln vehicles as well as used vehicles.

Payment is required when the dealer has sold the vehicle.

Payment is typically required when the dealer has sold the vehicle.

Each non-consumer lending request is evaluated by considering the borrower’s financial condition and the underlying collateral securing the loan.

37 unchanged sentences

$ 399 $ 31 $ 59 $ 159 $ 64 $ 385 $ 1,097 $ 23,586 $ 24,683 100.0 %

Gross charge-offs $ — $ — $ — $ — $ — $ 1 $ 1 $ 3 $ 4

(a) Total past due dealer financing receivables at December 31, 2023 were $ 33 million.

3 unchanged sentences

For receivables in non-accrual status, subsequent financing revenue is recognized only to the extent a payment is received.

Payments are generally applied first to outstanding interest and fees and then to the unpaid principal balance.

Troubled Debt Restructuring (“TDR”).

A restructuring of debt constitutes a TDR if a concession is granted to a debtor for economic or legal reasons related to the debtor’s financial difficulties that Ford Credit otherwise would not consider.

Consumer and non-consumer receivables that have a modified interest rate below market rate or that were modified in reorganization proceedings pursuant to the U.S.

Bankruptcy Code, except non-consumer receivables that are current with minimal risk of loss, are considered to be TDRs.

Ford Credit does not grant concessions on the principal balance of the receivables.

Payments are generally applied first to outstanding interest and then to the unpaid principal balance.

Loan Modifications.

Consumer and non-consumer receivables that have a modified interest rate and/or a term extension (including receivables that were modified in reorganization proceedings pursuant to the U.S.

Bankruptcy Code) are typically considered to be loan modifications.

Ford Credit does not grant modifications to the principal balance of the receivables.

If a receivable is modified in a reorganization proceeding, all payment requirements of the reorganization plan need to be met before remaining balances are forgiven.

2 unchanged sentences

FORD CREDIT FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES (Continued)

The use of interest rate modifications and term extensions helps Ford Credit mitigate financial loss.

Term extensions may assist in cases where Ford Credit believes the customer will recover from short-term financial difficulty and resume regularly scheduled payments.

The effect of most loan modifications made to borrowers experiencing financial difficulty is included in the historical trends used to measure the allowance for credit losses.

A loan modification that improves the delinquency status of a borrower reduces the probability of default, which results in a lower allowance for credit losses.

At December 31, 2023, an insignificant portion of Ford Credit's total finance receivables portfolio had been granted a loan modification, and these modifications are generally treated as a continuation of the existing loan.

Allowance for Credit Losses

10 unchanged sentences

Probability of default models are developed from internal risk scoring models taking into account the expected probability of payment and time to default, adjusted for macroeconomic outlook and recent performance.

The models consider factors such as risk evaluation at the time of origination, historical trends in credit losses (which include the impact of TDRs), and the composition and recent performance of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles).

The models consider factors such as risk evaluation at the time of origination, historical trends in credit losses, and the composition and recent performance of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles).

The loss given default is the percentage of the expected balance due at default that is not recoverable, taking into account the expected collateral value and trends in recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies).

11 unchanged sentences

Non-Consumer Portfolio

Dealer financing is evaluated on an individual dealer basis by segmenting dealers by risk characteristics (such as the amount of the loans, the nature of the collateral, the financial status of the dealer, and any TDR modifications) to determine if an individual dealer requires a specific allowance for credit loss.

Dealer financing is evaluated on an individual dealer basis by segmenting dealers by risk characteristics (such as the amount of the loans, the nature of the collateral, and the financial status of the dealer) to determine if an individual dealer requires a specific allowance for credit loss.

If required, the allowance is based on the present value of the expected future cash flows of the dealer’s receivables discounted at the loans’ original effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.

32 unchanged sentences

(a) Primarily represents amounts related to translation adjustments.

On January 1, 2020, we adopted ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, which had an impact on the 2020 opening balance of Retained earnings of $ 202 million.

For the year ended December 31, 2022, the allowance for credit losses decreased $ 80 million primarily due to Ford Credit’s current expectation that COVID-related losses have been largely avoided, offset partially by deterioration in the macroeconomic outlook that was reflected in the reserve balance in the fourth quarter of 2022.

Although net charge-offs for the year ended December 31, 2022 remained low due, in part, to high vehicle auction values, the impact of higher inflation and higher interest rates on future credit losses remains uncertain.

For the year ended December 31, 2023, the allowance for credit losses increased $ 37 million driven by an increase in Ford Credit finance receivables, partially offset by the impact of an improved U.S.

economic outlook that was reflected in the reserve balance in the fourth quarter of 2023.

Net charge-offs increased from a year ago, reflecting normalization from extraordinarily low levels.

The impact of inflationary pressure and high interest rates on future credit losses remains uncertain.

Ford Credit will continue to monitor economic trends and conditions and portfolio performance and will adjust the reserve accordingly.

6 unchanged sentences

$ 14,080 $ 15,651

Our finished product inventory at December 31, 2022 was higher year over year due to production and release scheduling, which resulted in higher sales inventory, in-transit inventory, and units awaiting upfit.

Our finished product inventory at December 31, 2023 was higher than at December 31, 2022, primarily reflecting higher in-transit inventory.

FORD MOTOR COMPANY AND SUBSIDIARIES

2 unchanged sentences

Net investment in operating leases consists primarily of lease contracts for vehicles with individuals, daily rental companies, government entities, and fleet customers.

Assets subject to operating leases are depreciated using the straight-line method over the term of the lease to reduce the asset to its estimated residual value.

Assets subject to operating leases are depreciated using the straight-line method over the term of the lease to reduce the asset to its estimated residual value at the end of the scheduled lease term.

Estimated residual values are based on assumptions for used vehicle prices at lease termination and the number of vehicles that are expected to be returned.

17 unchanged sentences

The amounts contractually due on operating leases at December 31, 2023 were as follows (in millions):

2023 2024 2025 2026 Thereafter Total

2024 2025 2026 2027 2028 Total

Operating lease payments $ 3,298 $ 2,175 $ 996 $ 192 $ 11 $ 6,672

39 unchanged sentences

AutoAlliance (Thailand) Co., Ltd.

FFS Finance South Africa (Pty) Limited 70 70 50

Ionity Holding GmbH & Co.

Argo AI, LLC (c) 2,042 — 44

Ford Sollers Netherlands B.V.

FFS Finance South Africa (Pty) Limited 70 65 50

Other 266 262 Various

2 unchanged sentences

These charges are included in Equity in net income/(loss) of affiliated companies .

(b) In 2022, Changan Ford Automobile Corporation, Limited recorded long-lived asset and other asset impairment charges as well as restructuring charges, our share of which was $ 368 million.

(b) In 2022 and 2023, Changan Ford Automobile Corporation, Limited recorded long-lived asset and other asset impairment charges as well as restructuring charges, our share of which was $ 368 million and $ 432 million, respectively.

These charges are included in Equity in net income/(loss) of affiliated companies .

(d) In 2022, we fully impaired our $ 93 million investment in Ford Sollers Netherlands B.V., and also sold our interest to the joint venture (with an option to repurchase within five years) for a nominal value resulting in the release of the $ 25 million carrying amount of our associated foreign currency translation adjustment.

These charges are included in Equity in net income/(loss) of affiliated companies and Other income/(loss) , respectively.

We recorded $ 452 million, $ 452 million, and $ 381 million of dividends from these affiliated companies for the years ended December 31, 2021, 2022, and 2023, respectively.

14 unchanged sentences

Net income/(loss) (a) 1,029 ( 1,769 ) 1,207

Net income/(loss) attributable to noncontrolling interests — ( 8 ) ( 63 )

(a) The 2022 results reflects Argo AI’s impairment, partially offset by the net income/(loss) of our other equity method investees.

13 unchanged sentences

Payables 1,676 1,766

In 2017, we began investing in Argo AI, an artificial intelligence company that became a consolidated subsidiary, with a commitment to fund $ 1 billion over five years to develop autonomous vehicle technology.

In 2020, we completed a transaction with Volkswagen AG (“VW”) that resulted in Ford and VW holding equal interests in Argo AI, which together comprised a majority ownership of the entity.

As a result of this transaction, which included $ 500 million of proceeds from the sale to VW of a portion of our interest in Argo AI, we deconsolidated Argo AI, remeasured our retained investment in the entity at fair value, and, net of our carrying value in Argo AI’s net assets, recognized a $ 3.5 billion pre-tax gain in Other income/(loss), net .

Immediately following this transaction, our retained investment consisted of a $ 2.4 billion equity method investment and a $ 400 million preferred equity security investment, which were reflected on our consolidated balance sheets in Equity in net assets of affiliated companies and Other assets , respectively.

Although Argo AI made progress on developing highly automated driving technology (L4), to achieve commercially viable scale, Argo AI’s technology requires significant additional capital investment and time.

In the near term, we see more potential for partial or conditional automated driving technology (L2/L3) to be transformative for customers and our business.

Therefore, in the third quarter of 2022, we made the strategic decision to shift our capital spending from L4 technology being developed by Argo AI to advanced L2/L3 systems, which we believe will ultimately be essential to achieve profitable commercialization of L4 autonomy at scale in the future.

Additionally, because of the significant additional capital and time required to achieve commercialization of L4, as well as other macroeconomic factors, Argo AI has been unable to attract new investors.

After performing external outreach in the third quarter of 2022 to assess market interest in acquiring either Argo AI or its technology components and conducting internal reviews to evaluate opportunities to leverage Argo AI’s technology, Ford determined that Argo AI no longer has value as a going concern.

As a result, we reassessed the carrying value of our investment in Argo AI starting from September 30, 2022, and in October 2022, Ford and VW initiated the process of exiting the joint development of L4 technology through Argo AI.

On October 26, 2022, we announced that Argo AI plans to wind down operations, which is in progress.

In the third quarter of 2022, Ford made the strategic decision to shift our capital spending from L4 technology being developed by Argo AI to advanced L2/L3 systems, which we believe will ultimately be essential to achieve profitable commercialization of L4 autonomy at scale in the future.

We determined that Argo AI no longer had value as a going concern, and as a result, we reassessed the carrying value of our investment as of September 30, 2022.

Our valuation assumed an orderly conclusion of operations at Argo AI, in which the cash required to satisfy the remaining obligations would consume all of Argo AI’s remaining capital.

In addition, we assessed whether Argo AI’s technology components have value in isolation, and we concluded that the cost to integrate into currently anticipated technology ecosystems would be prohibitive.

Accordingly, we recorded a $ 2.7 billion pre-tax impairment in the second half of 2022.

In addition, we assessed whether Argo AI’s technology components had value in isolation, and we concluded that the cost to integrate into anticipated technology ecosystems would be prohibitive.

Accordingly, we recorded a $ 2.7 billion pre-tax impairment in the third quarter of 2022.

The non-cash charge was reported in Equity in net income/(loss) of affiliated companies .

The carrying value of our investment in Argo AI is $ 0 as of December 31, 2022;

in addition, we have $ 65 million in Other liabilities and deferred revenue related to our funding commitment in 2023 for our share of Argo AI’s expenses incurred in 2022.

The carrying value immediately prior to the impairment was higher than our net cash investment of approximately $ 500 million (i.e., our $ 1 billion investment less proceeds we received from VW) due to the non-cash gain recognized when we deconsolidated Argo AI in 2020 as described above.

In the fourth quarter of 2022, Ford and Volkswagen AG, who held equal interests that together comprised a majority ownership of Argo AI, initiated the process of exiting the joint development of highly automated driving technology (L4) through Argo AI.

Argo AI is in the process of winding down operations, with no expected future funding required.

FORD MOTOR COMPANY AND SUBSIDIARIES

4 unchanged sentences

We report the carrying value of these investments in Other assets in the non-current assets section of our consolidated balance sheets.

These investments were $ 0.9 billion and $ 0.4 billion at December 31, 2021 and 2022, respectively.

See Note 14 for additional information about the decrease from December 31, 2021.

These investments were $ 384 million and $ 242 million at December 31, 2022 and 2023, respectively.

The cumulative net unrealized gain from adjustments related to Other Investments held at December 31, 2023 is $ 24 million.

17 unchanged sentences

Total non-current other liabilities and deferred revenue $ 25,497 $ 28,414

(a) Includes current derivative liabilities of $ 97 million and $ 1.3 billion at December 31, 2021 and 2022, respectively.

Includes non-current derivative liabilities of $ 535 million and $ 1.7 billion at December 31, 2021 and 2022, respectively (see Note 20).

(a) Includes current derivative liabilities of $ 1.3 billion and $ 1.0 billion at December 31, 2022 and 2023, respectively.

Includes non-current derivative liabilities of $ 1.7 billion and $ 1.3 billion at December 31, 2022 and 2023, respectively (see Note 20).

FORD MOTOR COMPANY AND SUBSIDIARIES

66 unchanged sentences

Net periodic benefit cost/(income) $ ( 1,437 ) $ 1,191 $ 966 $ ( 3,216 ) $ ( 439 ) $ 1,544 $ ( 212 ) $ ( 1,130 ) $ 542

In 2020, we recognized an expense of $ 367 million related to separation programs, settlements, and curtailments, which included a $ 61 million settlement loss related to a non-U.S.

pension plan and $ 268 million related to ongoing redesign programs.

In 2021, we recognized an expense of $ 244 million related to separation programs, settlements, and curtailments, which included $ 70 million of settlement losses related to a U.S.

pension plan and separation expenses of $ 156 million for non-U.S.

pension plans related to ongoing redesign programs.

In 2022, we recognized an expense of $ 544 million related to separation programs, settlements, and curtailments, which included $ 438 million of settlement losses related to a U.S.

pension plans related to ongoing restructuring programs.

In 2022, we recognized an expense of $ 544 million related to separation programs, settlements, and curtailments,

which included $ 438 million of settlement losses related to a U.S.

pension plan and separation and curtailment expenses of $ 57 million for non-U.S.

pension plans related to ongoing redesign programs.

Until our Global Redesign programs are completed, we anticipate further adjustments to our plans in subsequent periods.

pension plans related to ongoing restructuring programs.

In 2023, we recognized an expense of $ 360 million related to separation programs, settlements, and curtailments, which included $ 71 million of settlement losses related to U.S.

pension plans and separation and curtailment expenses of $ 268 million for non-U.S.

pension plans related to ongoing restructuring programs.

FORD MOTOR COMPANY AND SUBSIDIARIES

10 unchanged sentences

Interest cost 1,054 1,641 504 965 146 231

Amendments — — 4 — — —

Amendments (a) — 581 — 46 — 32

Separation programs/other 4 ( 18 ) 56 255 — —

Curtailments — — ( 2 ) 6 — —

Settlements (a) ( 1,297 ) ( 1,172 ) — ( 674 ) — —

Settlements (b) ( 1,172 ) ( 1,479 ) ( 674 ) ( 21 ) — —

Plan participant contributions 18 16 12 11 1 —

9 unchanged sentences

Benefits paid ( 2,466 ) ( 2,417 ) ( 1,302 ) ( 1,257 ) — —

Settlements (a) ( 1,297 ) ( 1,172 ) — ( 674 ) — —

Settlements (b) ( 1,172 ) ( 1,479 ) ( 674 ) ( 21 ) — —

Foreign exchange translation — — ( 2,973 ) 990 — —

16 unchanged sentences

Projected Benefit Obligation at December 31 $ 32,867 $ 32,676 $ 21,605 $ 24,004

(a) In the fourth quarter of 2022, we transferred a non-U.S.

pension obligation and related plan assets to an insurance company.

There were no gains or losses recognized upon settlement.

(a) Reflects benefit enhancements included in the collective bargaining agreements with the UAW and Unifor ratified in 2023.

plans, 2022 and 2023 primarily reflect salaried lump sum retirement payments.

plans, in 2022, we transferred a pension obligation and related plan assets to an insurance company.

FORD MOTOR COMPANY AND SUBSIDIARIES

6 unchanged sentences

In 2023, we contributed $ 592 million to our global funded pension plans and made $ 402 million of benefit payments to participants in unfunded plans.

During 2023, we expect to contribute between $ 500 million and $ 600 million of cash to our global funded pension plans.

During 2024, we expect to contribute about $ 1 billion of cash to our global funded pension plans.

We also expect to make about $ 400 million of benefit payments to participants in unfunded plans.

52 unchanged sentences

A generally consistent approach is used worldwide to develop this assumption.

This approach considers primarily inputs from a range of advisors for long-term capital market returns, inflation, bond yields, and other variables, adjusted for specific aspects of our investment strategy by plan.

This approach considers inputs from advisors for long-term capital market returns adjusted for specific aspects of our investment strategy by plan.

Historical returns also are considered where appropriate.

113 unchanged sentences

Otherwise, the leases are classified as operating leases and reported in Other assets in the non-current assets section of our consolidated balance sheets.

We have also entered into manufacturing contracts commencing in a future period where Ford’s portion of the output is expected to be significant.

As a result, there may be embedded leases, and related liabilities, that will be reported as part of our financial statements, typically upon commencement of production.

We have also entered into manufacturing contracts where Ford’s portion of the output is expected to be significant.

As a result, there are embedded leases, and related liabilities, that are reported as part of our financial statements, typically upon commencement of production.

For the majority of our leases, we do not separate the non-lease components (e.g., maintenance and operating services) from the lease components to which they relate.

27 unchanged sentences

Total lease liabilities $ 1,876 $ 638

(a) Excludes approximately $ 300 million in future lease payments for various leases commencing in a future period.

(a) Excludes approximately $ 449 million in future lease payments for various leases commencing in future periods.

FORD MOTOR COMPANY AND SUBSIDIARIES

45 unchanged sentences

Long-term payable within one year

Public unsecured debt securities 86 —

Department of Energy Advanced Technology Vehicles Manufacturing (“DOE ATVM”) Incentive Program 953 —

Delayed draw term loan 1,500 —

Other debt 348 372

Other debt (including finance leases) 372 117

Unamortized (discount)/premium ( 1 ) ( 2 )

4 unchanged sentences

Export Finance Program 1,654 1,749

Other debt 768 682

Other debt (including finance leases) 682 811

Unamortized (discount)/premium ( 180 ) ( 155 )

53 unchanged sentences

Title of Security 2022 2023

8 7/8% Debentures due January 15, 2022 $ 86 $ —

9.000 % Notes due April 22, 2025

7 1/8% Debentures due November 15, 2025 $ 176 $ 176

32 unchanged sentences

Environmental, Social, Governance (“ESG”) Bonds

In November 2021 and August 2022, we issued $ 2.5 billion and approximately $ 1.8 billion aggregate principal amount of green bonds, respectively, under our sustainable financing framework.

The interest rates of these green bonds are 3.250 % and 6.1 %, respectively.

We are allocating the net proceeds from this issuance to the design, development, and manufacturing of our electric vehicle portfolio.

In August 2022, we issued approximately $ 1.8 billion aggregate principal amount of green bonds under our sustainable financing framework.

The interest rate of this green bond was 6.1 %.

We allocated the net proceeds from this issuance to the design, development, and manufacturing of our electric vehicle portfolio.

Convertible Debt

10 unchanged sentences

Upon conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and cash, shares of our Common Stock, or a combination of cash and shares of our Common Stock, at our election for the remainder of our obligation in excess, if any, of the aggregate principal amount of the notes being converted.

We may not redeem the notes prior to March 20, 2024.

On or after March 20, 2024, we may redeem all or any portion of the notes for cash equal to 100 % of the principal amount of the notes being redeemed if the last reported sale price of our Common Stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period.

FORD MOTOR COMPANY AND SUBSIDIARIES

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DEBT AND COMMITMENTS (Continued)

We may not redeem the notes prior to March 20, 2024.

If we undergo a fundamental change (e.g., change of control), subject to certain conditions, holders of the notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100 % of the principal amount of the notes.

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The notes were issued at par and fees associated with the issuance of these notes are amortized to Interest expense on Company debt excluding Ford Credit over the contractual term of the notes.

Amortization of issuance costs was $ 5 million and $ 7 million in 2021 and 2022, respectively.

Amortization of issuance costs was $ 5 million, $ 7 million, and $ 7 million in 2021, 2022, and 2023, respectively.

The effective interest rate of the notes is 0.3 %.

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The notes did not have an impact on our full year 2022 or 2023 diluted EPS.

DOE ATVM Incentive Program

In September 2009, we entered into a Loan Arrangement and Reimbursement Agreement with the DOE, under which we borrowed through multiple draws $ 5.9 billion to finance certain costs for fuel-efficient, advanced-technology vehicles.

We made our final repayment to the DOE in June 2022.

Export Finance Program

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These five-year , non-amortizing loans mature on June 30, 2025 and June 30, 2027.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

DEBT AND COMMITMENTS (Continued)

Company Excluding Ford Credit Facilities

Total Company committed credit lines, excluding Ford Credit, at December 31, 2023 were $ 19.4 billion, consisting of $ 13.5 billion of our corporate credit facility, $ 2.0 billion of our supplemental revolving credit facility, $ 1.8 billion of our 364-day revolving credit facility, and $ 2.2 billion of local credit facilities.

At December 31, 2022, the utilized portion of the corporate credit facility was $ 19 million, representing amounts utilized for letters of credit, and the full $ 1.75 billion of our 364-day revolving credit facility was utilized by Ford Credit, in its capacity as a subsidiary borrower under that facility.

At December 31, 2023, the utilized portion of the corporate credit facility was $ 18 million, representing amounts utilized for letters of credit.

In addition, $ 1.8 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates as of December 31, 2023.

As of January 25, 2023, Ford Credit had repaid the full $ 1.75 billion outstanding under the 364-day revolving credit facility.

Lenders under our corporate credit facility have $ 3.4 billion of commitments maturing on June 23, 2025 and $ 10.1 billion of commitments maturing on June 23, 2027.

Lenders under our supplemental revolving credit facility have $ 0.1 billion of commitments maturing on September 29, 2024 and $ 1.9 billion of commitments maturing on June 23, 2025.

Lenders under our 364-day revolving credit facility have $ 1.75 billion of commitments maturing on June 22, 2023.

Lenders under our corporate credit facility have $ 3.4 billion of commitments maturing on April 26, 2026 and $ 10.1 billion of commitments maturing on April 26, 2028.

Lenders under our supplemental revolving credit facility have $ 0.1 billion of commitments maturing on September 29, 2024 and $ 1.9 billion of commitments maturing on April 26, 2026.

Lenders under our 364-day revolving credit facility have $ 1.8 billion of commitments maturing on April 24, 2024.

On August 17, 2023, we entered into a new 364-day revolving credit facility, with $ 4 billion of commitments maturing on August 15, 2024.

At the time we entered into this credit facility, it provided additional working capital flexibility to manage through uncertainties in the present environment, including a potential labor disruption.

With the ratification of the new UAW contract, this credit facility was terminated as of November 24, 2023.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

DEBT AND COMMITMENTS (Continued)

The corporate, supplemental, and 364-day credit agreements include certain sustainability-linked targets, pursuant to which the applicable margin and facility fees may be adjusted if Ford achieves, or fails to achieve, the specified targets related to global manufacturing facility greenhouse gas emissions, renewable electricity consumption, and Ford Europe CO 2 tailpipe emissions.

Ford outperformed the 2022 targets for all three of the sustainability-linked metrics, which favorably impacted pricing beginning in the third quarter of 2023.

The corporate credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive financial covenants (for example, interest or fixed-charge coverage ratio, debt-to-equity ratio, and minimum net worth requirements), and credit rating triggers that could limit our ability to obtain funding or trigger early repayment.

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Each of the corporate credit facility, supplemental revolving credit facility, and 364-day revolving credit facility include a covenant that requires us to provide guarantees from certain of our subsidiaries in the event that our senior, unsecured, long-term debt does not maintain at least two investment grade ratings from Fitch, Moody’s, and S&P.

The following subsidiaries have provided unsecured guarantees to the lenders under the credit facilities:

On October 30, 2023, following the upgrade by S&P of our senior, unsecured, long-term debt credit rating to BBB-, the unsecured guarantees provided by the following subsidiaries to the lenders under the credit facilities were released:

Ford Component Sales, LLC;

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Ford Next LLC;

and Ford Trading Company, LLC.

Ford Trading Company, LLC;

and Ford Van Dyke Investment Fund, Inc.

Ford Credit Segment

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As a result of these transactions, Ford Credit recorded a pre-tax gain of $ 17 million (net of unamortized discounts, premiums, fees, and fair value adjustments) in Other income/(loss), net in 2022.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

DEBT AND COMMITMENTS (Continued)

Asset-Backed Debt

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In order to continue to fund the wholesale receivables, we also may contribute additional cash or wholesale receivables if the collateral falls below required levels.

The balance of cash related to these contributions was $ 1,150 million and $ 0 at December 31, 2021 and December 31, 2022, respectively, and ranged from $ 25 million to $ 3,700 million during 2021 and from $ 0 to $ 2,850 million during 2022.

The balance of cash related to these contributions was $ 0 at both December 31, 2022 and 2023 and ranged from $ 0 to $ 2,850 million during 2022 and from $ 0 to $ 41 million during 2023.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

DEBT AND COMMITMENTS (Continued)

SPEs that are exposed to interest rate or currency risk may reduce their risks by entering into derivative transactions.

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Total $ 85 $ ( 576 ) $ ( 490 )

(a) For 2020, 2021, and 2022, a $ 198 million gain, a $ 453 million loss, and a $ 448 million gain, respectively, were reported in Other comprehensive income/(loss), net of tax .

(b) For 2020, 2021, and 2022, a $ 9 million gain, a $ 284 million gain, and a $ 102 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax .

(c) For 2020, 2021, and 2022, a $ 228 million loss, a $ 230 million gain, and a $ 53 million loss, respectively, were reported in Cost of sales and a $ 82 million loss, an $ 145 million gain, and a $ 50 million gain were reported in Other income/(loss), net, respectively.

(a) For 2021, 2022, and 2023, a $ 453 million loss, a $ 448 million gain, and a $ 482 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax .

(b) For 2021, 2022, and 2023, a $ 284 million gain, a $ 102 million loss, and a $ 37 million loss, respectively, were reported in Other comprehensive income/(loss), net of tax .

(c) For 2021, 2022, and 2023, a $ 230 million gain, a $ 53 million loss, and a $ 3 million loss, respectively, were reported in Cost of sales and a $ 145 million gain, a $ 50 million gain, and a $ 35 million loss were reported in Other income/(loss), net, respectively.

FORD MOTOR COMPANY AND SUBSIDIARIES

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EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES

We record costs associated with voluntary separations at the time of employee acceptance, unless the acceptance requires explicit approval by the Company.

We generally record costs associated with voluntary separations at the time of employee acceptance.

We record costs associated with involuntary separation programs when management has approved the plan for separation, the affected employees are identified, and it is unlikely that actions required to complete the separation plan will change significantly.

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Employee separation actions and exit and disposal activities include employee separation costs, facility and other asset-related charges (e.g., impairment, accelerated depreciation), dealer and supplier payments, other statutory and contractual obligations, and other expenses, which are recorded in Cost of sales and Selling, administrative, and other expenses .

Below are actions we have initiated, primarily related to the global redesign of our business:

• Ford Motor Company Brasil Ltda exited manufacturing operations in Brazil, which resulted in the sale of the São Bernardo do Campo plant facilities and machinery and equipment during 2020 as well as closure of facilities in Camaçari, Taubaté, and Troller in 2021

• Ford Motor Company Limited ceased production at the Bridgend plant in the United Kingdom and the facility was closed in September 2020

• Ford India Private Limited (“Ford India”) ceased vehicle manufacturing in Sanand in fourth quarter 2021 and ceased manufacturing in Chennai in third quarter 2022.

In the third quarter of 2022, Ford India entered into an agreement to sell the Sanand vehicle assembly and powertrain plants.

• Ford Espana S.L.

ceased production of the Mondeo at the Valencia plant in Spain in March 2022

In addition, we are continuing to reduce our global workforce and take other restructuring actions, including the separation of salaried workers in North America and India in third quarter 2022.

Below are actions we have initiated:

Exited manufacturing operations in 2021 resulting in the closure of facilities in Camaçari, Taubaté, and Troller.

Sales of the Taubaté and Camaçari plants were completed in 2023

Ceased vehicle manufacturing in Sanand in fourth quarter of 2021 and ceased manufacturing in Chennai in the third quarter of 2022.

A sale of the Sanand vehicle assembly and powertrain plants was completed in the first quarter of 2023.

Ceased production of the Mondeo at the Valencia plant in the first quarter of 2022

Ceased development of certain product programs

Production of the Focus will cease at our Saarlouis Body and Assembly Plant in 2025.

Our plan is to repurpose the facility into a technology center, retaining 1,000 positions.

We are engaged in discussions with our Social Partners related to the remaining affected positions at the plant

In addition, we are continuing to reduce our global workforce and take other restructuring actions, including the separation of salaried workers as announced during 2023.

The following table summarizes the activities for the years ended December 31, which are recorded in Other liabilities and deferred revenue (in millions):

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Payments ( 883 ) ( 1,030 )

Foreign currency translation ( 49 ) ( 36 )

Foreign currency translation and other ( 36 ) ( 72 )

Ending balance $ 588 $ 1,086

(a) Excludes pension costs of $ 57 million and $ 268 million in 2022 and 2023, respectively.

In 2020, we recorded $ 1.4 billion of non-cash charges related to the write-off of certain tax and other assets in South America, accelerated depreciation, and other items.

In addition, we recognized a pre-tax net gain on sale of assets of $ 39 million.

In 2021, we recorded $ 739 million for accelerated depreciation and other non-cash items.

In 2022, we recorded $ 32 million for accelerated depreciation, impairment of our India held-for-sale assets, and other non-cash items, partially offset by tax credits and other benefits.

In 2022, we recorded $ 32 million for accelerated depreciation, impairment of our India assets, and other non-cash items, partially offset by tax credits and other benefits.

In addition, we recognized a $ 38 million pre-tax net gain on sale of assets in 2022.

We recorded $ 2 billion and $ 608 million in 2021 and 2022, respectively, related to the actions above.

Total charges in 2023 related to such actions, primarily attributable to employee separations and dealer and supplier settlements, are not expected to be significant.

We continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible when considering the capital allocation required for those businesses.

In 2023, we recorded $ 67 million for accelerated depreciation and other non-cash items and recognized a $ 62 million pre-tax net gain on sale of assets.

We recorded charges of $ 608 million and $ 1.9 billion in 2022 and 2023, respectively, related to the actions above.

We estimate that we will incur about $ 1 billion in total charges in 2024 related to such actions, primarily attributable to employee separations;

some charges are related to plans that are subject to negotiations with a works council, union, or other social partner.

In addition, we continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible when considering the capital allocation required for those businesses.

FORD MOTOR COMPANY AND SUBSIDIARIES

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EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES (Continued)

United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”) Voluntary Separation Packages

As agreed in the collective bargaining agreement ratified in November 2019, during the first quarter of 2020, we offered voluntary separation packages to our UAW hourly workforce who were eligible for normal or early retirement and recorded associated costs of $ 201 million in Cost of sales .

All separations occurred during 2020.

In addition, we also offered voluntary separation packages in 2022 to certain of our UAW hourly workforce who were eligible for normal or early retirement and recorded associated costs of $ 19 million in Cost of sales .

United Automobile, Aerospace, and Agricultural Implement Workers of America Voluntary Separation Packages

We offered voluntary separation packages in 2022 to certain of our UAW hourly workforce who were eligible for normal or early retirement and recorded associated costs of $ 19 million in Cost of sales .

Accumulated foreign currency translation losses included in Accumulated other comprehensive income/(loss) at December 31, 2023 of $ 223 million are associated with Ford Credit’s investments in Brazil and Argentina that have ceased operations.

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In 2022, we reclassified losses of $ 155 million to Other income/(loss), net upon the liquidation of three investments in Brazil.

Although the timing for the completion of the remaining actions is uncertain, we expect the majority of losses to be recognized in 2024 or later.

ACQUISITIONS AND DIVESTITURES

Company Excluding Ford Credit

Auto Motive Power (“AMP”).

On November 1, 2023, we acquired AMP, a California-based energy management startup focused on electric vehicle charging solutions.

Assets acquired primarily include goodwill and technology, which are reported in Other assets .

The acquisition did not have a material impact on our financial statements.

Sanand, India (“Sanand”) Plants.

In the third quarter of 2022, we entered into an agreement to sell our Sanand vehicle assembly and powertrain plants to Tata Passenger Electric Mobility Limited (“Tata”), a subsidiary of Tata Motors Limited.

The sale transaction included the land, buildings, and other fixed assets (excluding the powertrain machinery and equipment) for the plants.

We recognized, in Cost of sales , pre-tax impairment charges of $ 32 million in the third quarter of 2022 to adjust the carrying value of the assets to fair value less costs to sell.

We determined fair value using the market approach, based on the negotiated value of the assets.

Accordingly, we reported $ 88 million of fixed assets for this operation as held for sale for the period ended December 31, 2022, which we report in Other assets in the current assets section of our consolidated balance sheets.

On January 10, 2023, we completed the sale of the plants to Tata.

Ford continues to operate the powertrain facility by leasing back the associated land and building.

As a result of the sale transaction, we derecognized the fixed assets and recognized the powertrain facility operating lease right-of-use asset and related lease liability in the first quarter of 2023.

The fair value of the cash consideration received approximated the carrying value of the fixed assets at the time of sale.

Ford Romania S.R.L.

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The fair value of consideration received, consisting of cash and a note receivable, approximated the carrying value of Ford Romania at the time of sale.

The Ford Romania plant in Craiova, Romania will continue to manufacture Ford-branded vehicles for Ford and Ford Otosan.

The Ford Romania plant in Craiova, Romania continues to manufacture Ford-branded vehicles for Ford and Ford Otosan.

Ford’s portion of the output is expected to be significant;

as a result, at the time of sale there were about $ 100 million of assets, such as embedded leases, and related liabilities that continue to be reported as part of our financial statements.

Sanand, India (“Sanand”) Plants.

The sale transaction includes the land, buildings, and other fixed assets (excluding the powertrain machinery and equipment) for the plants.

Accordingly, we have reported $ 88 million of fixed assets for this operation as held for sale for the period ended December 31, 2022.

We recognized, in Cost of sales , pre-tax impairment charges of $ 32 million in the third quarter of 2022 to adjust the carrying value of the held-for-sale assets to fair value less costs to sell.

We determined fair value using the market approach, estimated based on the negotiated value of the assets.

After the sale to Tata, Ford will continue to operate the powertrain facility by leasing back the associated land and building.

On January 10, 2023, we completed the sale of the plants to Tata, which will result in derecognition of the fixed assets and recognition of the powertrain facility operating lease right-of-use asset and related lease liability in the first quarter of 2023.

The fair value of the cash consideration received approximated the carrying value of the fixed assets at the time of sale.

Skinny Labs Inc., dba Spin (“Spin”).

On April 1, 2022, we completed the sale of Spin, our wholly-owned micro-mobility provider, to TIER Mobility SE, a German-based micro-mobility provider, which resulted in the deconsolidation of our Spin subsidiary in the second quarter of 2022.

In exchange for our shares of Spin, we received preferred equity in TIER Mobility SE, which is reflected in our consolidated balance sheets in Other assets as of the second quarter of 2022.

The fair value of the preferred equity approximated the carrying value of Spin at the time of the transaction.

In exchange for our shares of Spin, we received preferred equity in TIER Mobility SE.

Electriphi, Inc.

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The significant assumptions used in the valuation included GFT’s cash flows that reflect the approved business plan, discounted at a rate typically used for a company like GFT.

Argo AI, LLC (“Argo AI”).

On June 1, 2020, we completed a transaction with VW that resulted in Ford and VW holding equal interests in Argo AI, which together comprised a majority ownership of the entity.

See Note 14 for more information about our retained investment in Argo AI following this transaction.

Ford Credit Segment

In the first quarter of 2020, Ford Credit completed the sale of its wholly-owned subsidiary Forso Nordic AB, recognizing a pre-tax loss of $ 4 million, reported in Other income/(loss), net , and cash proceeds of $ 1.3 billion.

FORD MOTOR COMPANY AND SUBSIDIARIES

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Tax/(Tax benefit) ( 5 ) 5 9

Net (gains)/losses reclassified from AOCI to net income

( 33 ) ( 18 ) 14

Net (gains)/losses reclassified from AOCI to net income (b) ( 18 ) 14 26

Other comprehensive income/(loss), net of tax ( 175 ) ( 423 ) 272

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Beginning balance $ ( 2,658 ) $ ( 2,640 ) $ ( 2,610 )

Prior service (costs)/credits arising during the period ( 21 ) — —

Prior service (costs)/credits arising during the period (e) — — ( 659 )

Tax/(Tax benefit) — — ( 157 )

Net prior service (costs)/credits arising during the period

Amortization and recognition of prior service costs/(credits) (e) 63 27 21

Amortization and recognition of prior service costs/(credits) (f) 27 21 25

Tax/(Tax benefit) 6 4 6

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(b) Reclassified to Other income/(loss), net.

(c) Excludes a loss of $ 1 million, a gain of $ 4 million, and a loss of $ 4 million related to noncontrolling interests in 2020, 2021, and 2022, respectively.

(c) Excludes a gain of $ 4 million, a loss of $ 4 million, and a gain of $ 1 million related to noncontrolling interests in 2021, 2022, and 2023, respectively.

(d) Reclassified to Cost of sales .

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See Note 20 for additional information.

(e) Amortization and recognition of prior service costs/(credits) is included in the computation of net periodic pension cost/(income).

(e) Reflects benefit enhancements included in the collective bargaining agreements with the UAW and Unifor ratified in 2023.

(f) Amortization and recognition of prior service costs/(credits) is included in the computation of net periodic pension cost/(income).

See Note 17 for additional information .

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Certain of our affiliates are VIEs in which we are not the primary beneficiary.

Our maximum exposure to any potential losses associated with these unconsolidated affiliates is limited to our equity investments, accounts receivable, loans, and guarantees and was $ 2.8 billion and $ 1.0 billion at December 31, 2021 and 2022, respectively, of which $ 113 million of guarantees related to certain obligations of our VIEs in 2022 are also included in Note 25.

The decrease in maximum exposure from December 31, 2021 is primarily explained by Argo AI (see Note 14), partially offset by the investment in BlueOval SK (as described below).

Of these amounts, guarantees of $ 113 million and $ 125 million at December 31, 2022 and 2023, respectively, related to certain obligations of our VIEs also are included in Note 25.

On July 13, 2022, Ford, SK On Co., Ltd., and SK Battery America, Inc.

(a wholly owned subsidiary of SK On) completed the creation of BlueOval SK, LLC, a 50/ 50 joint venture that will build and operate electric vehicle battery plants in Tennessee and Kentucky to supply batteries to Ford and Ford affiliates.

BlueOval SK is a variable interest entity of which we are not the primary beneficiary, and we use the equity method of accounting for our investment.

As of December 31, 2022, Ford has contributed to BlueOval SK $ 691 million of its agreed capital contribution of up to $ 6.6 billion through 2026, subject to any adjustments agreed to by the parties.

(a wholly owned subsidiary of SK On) completed the creation of BlueOval SK, LLC (“BOSK”), a 50/ 50 joint venture that will build and operate electric vehicle battery plants in Tennessee and Kentucky to supply batteries to Ford and Ford affiliates.

BOSK is a VIE of which we are not the primary beneficiary, and we use the equity method of accounting for our investment.

As of December 31, 2023, Ford has contributed to BOSK $ 3.3 billion of its agreed capital contribution of up to $ 6.6 billion through 2026.

The total amount of capital contributions is subject to adjustments agreed to by the parties.

VIEs of Which We are the Primary Beneficiary

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The maximum potential payments for non-financial guarantees were $ 273 million and $ 7 million at December 31, 2022 and 2023, respectively.

The carrying value of recorded liabilities related to non-financial guarantees was $ 38 million and $ 0 at December 31, 2021 and 2022, respectively.

The carrying value of recorded liabilities related to non-financial guarantees was $ 0 at both December 31, 2022 and 2023.

Included in the $ 7 million of maximum potential payments at December 31, 2023 are guarantees for the resale value of vehicles sold in certain arrangements to daily rental companies.

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For non-pattern matters, we evaluate whether there is a reasonable possibility of a material loss in excess of any accrual that can be estimated.

Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects indirect tax, customs, and regulatory matters, for which we estimate the aggregate risk to be a range of up to about $ 2 billion.

Our estimate of reasonably possible loss in excess of our accruals for all material matters currently reflects indirect tax and customs matters, for which we estimate the aggregate risk to be a range of up to about $ 1.4 billion.

As noted, the litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance.

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Changes to our estimated costs are reported as changes in accrual related to pre-existing warranties in the table above.

Our estimate of reasonably possible costs in excess of our accruals for material field service actions and customer satisfaction actions is a range of up to about $ 700 million in the aggregate.

Our estimate of reasonably possible costs in excess of our accruals for material field service actions and customer satisfaction actions is a range of up to about $ 1.3 billion in the aggregate.

FORD MOTOR COMPANY AND SUBSIDIARIES

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We report segment information consistent with the way our chief operating decision maker (“CODM”) evaluates the operating results and performance of the Company.

Accordingly, we analyze the results of our business through the following segments:

Automotive, Mobility, and Ford Credit.

Items not included within our segments are reported and reviewed as part of Corporate Other, Interest on Debt, and Special Items.

On January 1, 2023, we implemented a new operating model and reporting structure.

With this change, we will analyze the results of our business through the following reportable segments:

Ford Blue, Ford Model e, and Ford Pro (combined, replacing the Automotive segment);

Ford Next (previously Mobility);

and Ford Credit.

As a result of the change, beginning with our Quarterly Report on Form 10-Q for the quarter ending March 31, 2023, we will report our results in these five reportable segments.

Company adjusted earnings before interest and taxes (“EBIT”) will include the financial results of these five reportable segments and Corporate Other, and net income will comprise the financial results of the five reportable segments and Corporate Other, as well as Interest on Debt, Special Items, and Taxes.

Below is a description of our reportable segments and other activities as of December 31, 2022.

Automotive Segment

The Automotive segment primarily includes the sale of Ford and Lincoln vehicles, service parts, and accessories worldwide, together with the associated costs to develop, manufacture, distribute, and service the vehicles, parts, and accessories.

This segment includes revenues and costs related to our electrification vehicle programs and enterprise connectivity.

The segment includes the following regional business units:

North America, South America, Europe, China (including Taiwan), and the International Markets Group.

Mobility Segment

The Mobility segment primarily includes development costs for Ford’s autonomous vehicles and related businesses, Ford’s equity ownership in Argo AI (a developer of autonomous driving systems), and other mobility businesses and investments.

For additional information about our investment in Argo AI, see Note 14.

As a result of this change, we analyze the results of our business through the following segments:

Ford Blue, Ford Model e, and Ford Pro (combined, replacing the previous Automotive segment), Ford Next (previously the Mobility segment), and Ford Credit.

Company adjusted earnings before interest and taxes (“EBIT”) includes the financial results of these five reportable segments and Corporate Other, and net income comprises the financial results of the five reportable segments and Corporate Other, as well as Interest on Debt, Special Items, and Taxes.

Additionally, past service pension and OPEB income and expense plus related assets, previously reported in the Automotive segment, have been realigned to Corporate Other.

Prior period amounts were adjusted retrospectively to reflect each of the above changes.

Below is a description of our reportable segments and other activities.

Ford Blue Segment

Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine (“ICE”) and hybrid vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services.

This segment focuses on developing Ford and Lincoln ICE and hybrid vehicles.

Additionally, this segment provides hardware engineering and manufacturing capabilities to Ford Model e and manufactures vehicles on behalf of Ford Pro and, in certain cases, Ford Model e.

Ford Blue also includes:

• All sales for markets not presently in scope for Ford Model e or Ford Pro (as further described below)

• In markets outside of the United States and Canada, sales to commercial, government, and rental customers of ICE and hybrid vehicles not considered core to Ford Pro

• Sales of electric vehicles (“EVs”) by our unconsolidated affiliates in China

• All sales of vehicles manufactured and sold to other OEMs

Ford Model e Segment

Ford Model e primarily includes the sale of our electric vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services.

This segment focuses on developing EV and digital vehicle technologies, as well as software development.

Additionally, Ford Model e provides software and connected vehicle technologies on behalf of the enterprise, and manufactures certain EVs, including for Ford Pro.

Ford Model e operates in North America, Europe, and China.

Ford Model e also includes EV and related sales not considered core to Ford Pro to commercial, government, and rental customers in Europe, China, and Mexico.

Ford Pro Segment

Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers.

Included in this segment are sales of all core Ford Pro vehicles, such as Super Duty and the Transit range of vans in North America and Europe and all sales of Ranger in Europe.

In the United States and Canada, Ford Pro also includes all vehicle sales to commercial, government, and rental customers.

This segment focuses on selling ICE, hybrid, and electric vehicles, and providing digital and physical services to optimize and maintain fleets, including telematics and EV charging solutions.

This segment reflects external sales of vehicles produced by Ford Blue and Ford Model e and the costs (including intersegment markup) associated with acquiring vehicles for sale and providing services.

Ford Pro operates in North America and Europe.

Ford Next Segment

The Ford Next segment (formerly the Mobility segment) primarily includes expenses and investments for emerging business initiatives aimed at creating value for Ford in vehicle-adjacent market segments.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

SEGMENT INFORMATION (Continued)

Ford Credit Segment

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Corporate Other

Corporate Other primarily includes corporate governance expenses, interest income (excluding interest earned on our extended service contract portfolio that is included in our Automotive segment) and gains and losses from our cash, cash equivalents, and marketable securities (excluding gains and losses on investments in equity securities), and foreign exchange derivatives gains and losses associated with intercompany lending.

Corporate Other primarily includes corporate governance expenses, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and gains and losses from our cash, cash equivalents, and marketable securities (excluding gains and losses on investments in equity securities), and foreign exchange derivatives gains and losses associated with intercompany lending.

Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, that are not allocated to operating segments.

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Corporate Other assets include:

cash, cash equivalents, and marketable securities;

tax related assets;

other investments;

and other assets managed centrally.

cash, cash equivalents and marketable securities, tax related assets, defined benefit pension plan net assets, and other assets managed centrally.

Interest on Debt

Interest on Debt is presented as a separate reconciling item and consists of interest expense on Company debt excluding Ford Credit.

The underlying liability is reported in the Automotive segment and in Corporate Other.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

SEGMENT INFORMATION (Continued)

Special Items

Special Items are presented as a separate reconciling item.

They consist of (i) pension and OPEB remeasurement gains and losses, (ii) gains and losses on investments in equity securities, (iii) significant personnel expenses, dealer-related costs, and facility-related charges stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iv) other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities.

They consist of (i) pension and OPEB remeasurement gains and losses, (ii) gains and losses on investments in equity securities, (iii) significant personnel expenses, supplier- and dealer-related costs, and facility-related charges stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iv) other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities.

Our management ordinarily excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources.

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SEGMENT INFORMATION (Continued)

Segment Revenue, Cost, and Asset Principles for Ford Blue, Ford Model e, and Ford Pro

External vehicle and digital services revenue is generally vehicle-specific and included in the segment responsible for the external vehicle sale.

A majority of parts and accessories revenue and cost is attributed to customer sales channels or vehicle lines based on recent end customer sales and is included in the respective segment.

In the normal course of business, Ford Blue, Ford Model e, and Ford Pro transact between segments and cooperate to leverage synergies, including developing and manufacturing vehicles on behalf of another segment.

When one segment produces a vehicle that is sold externally by another segment, an intersegment transaction occurs.

The producing segment will report intersegment revenue to recoup the costs associated with the unit produced.

This includes material cost, labor and overhead (including depreciation and amortization), inbound freight, and an intersegment markup.

The intersegment markup amount is set to deliver a competitive return to the producing segment for its manufacturing and distribution service.

Costs are reflected in the associated segment externally reporting the vehicle sale, as detailed in the table below:

Income Statement Elements Examples Segment Reporting

Costs specific to a particular vehicle Bill of material cost and initial warranty accrual Reported in the segment externally selling the vehicle

Costs identifiable by product line Manufacturing and logistics costs, depreciation & amortization expense, direct research & development costs Typically identifiable to the product line or production location.

Reported in the segment externally selling the vehicle, based on relative volume

Shared costs Selling, general & administrative expense, and indirect/cross product line research & development costs Typically shared across all segments, generally based on relative volume.

Certain costs clearly linked to a segment are reported in the specific segment

Intersegment markup for intersegment vehicle transactions Contract manufacturing and distribution fees Reported in the segment externally selling the vehicle, for each applicable vehicle transaction

Assets are reported in each segment, aligned to the appropriate operational responsibility.

Manufacturing assets, e.g., our plants and the machinery and equipment therein, are included in our Ford Blue and Ford Model e segments.

Manufacturing assets producing only, or primarily, EVs and related components are reflected in Ford Model e.

Manufacturing assets that support the production of ICE and hybrid vehicles, including those producing ICE and electric in the same facility, are included in Ford Blue.

Vendor tooling dedicated to producing EV parts is reported in Ford Model e.

There are no Ford manufacturing or vendor tooling assets reported in Ford Pro.

Regardless of the segment reporting the asset, depreciation and amortization expense is reflected on the basis of production volume and reported in the segment that reports the external vehicle sale.

Equity in net income/(loss) of affiliated companies is included in Income/(Loss) before income taxes , based primarily on which segment the entity supports or has the majority of the entity’s purchases or sales.

The table below shows the segment reporting for our most significant unconsolidated entities:

Ford Blue Ford Model e Ford Pro

∘ Changan Ford Automobile Corporation, Ltd.

∘ BlueOval SK, LLC

∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)

∘ Jiangling Motors Corporation, Ltd.

∘ AutoAlliance (Thailand) Co., Ltd.

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

SEGMENT INFORMATION (Continued)

Key financial information for the years ended or at December 31 was as follows (in millions):

Automotive Mobility Ford Credit Corporate Other Interest on Debt Special

Ford Blue Ford Model e Ford Pro Ford Next Ford Credit Corporate Other Interest on Debt Special

Items Eliminations/Adjustments Total

Revenues $ 115,894 $ 47 $ 11,203 $ — $ — $ — $ — $ 127,144

Income/(Loss) before income taxes 1,706 ( 1,052 ) 2,608 ( 726 ) ( 1,649 ) ( 2,003 ) (a) — ( 1,116 )

External Revenues $ 80,377 $ 3,098 $ 42,649 $ 118 $ 10,073 $ 26 $ — $ — $ — $ 136,341

Intersegment Revenues (a)

30,089 88 — — — — — — ( 30,177 ) —

Total Revenues $ 110,466 $ 3,186 $ 42,649 $ 118 $ 10,073 $ 26 $ — $ — $ ( 30,177 ) $ 136,341

Income/(Loss) before income taxes $ 3,293 $ ( 892 ) $ 2,665 $ ( 1,030 ) $ 4,717 $ 1,247 $ ( 1,803 ) $ 9,583 (b) $ — $ 17,780

Depreciation and tooling amortization 3,445 142 1,423 8 1,666 67 — 567 — 7,318

2 unchanged sentences

Equity in net income/(loss) of affiliated companies 302 ( 10 ) 275 ( 258 ) 31 2 — ( 15 ) — 327

Cash outflow for capital spending 5,483 44 40 175 — — — 5,742

Total assets 62,741 3,459 157,637 45,410 — — ( 1,986 ) (b) 267,261

Revenues $ 126,150 $ 118 $ 10,073 $ — $ — $ — $ — $ 136,341

Income/(Loss) before income taxes 7,397 ( 1,030 ) 4,717 ( 1,084 ) ( 1,803 ) 9,583 (c) — 17,780

Cash outflow for capital spending (c)

5,214 516 59 46 44 348 — — — 6,227

Total assets 55,456 2,563 1,809 3,325 134,428 60,871 — — ( 1,417 ) (d) 257,035

External Revenues $ 94,762 $ 5,253 $ 48,939 $ 99 $ 8,978 $ 26 $ — $ — $ — $ 158,057

Intersegment Revenues (a)

36,020 121 — — — — — — ( 36,141 ) —

Total Revenues $ 130,782 $ 5,374 $ 48,939 $ 99 $ 8,978 $ 26 $ — $ — $ ( 36,141 ) $ 158,057

Income/(Loss) before income taxes $ 6,847 $ ( 2,133 ) $ 3,222 $ ( 926 ) $ 2,657 $ 748 $ ( 1,259 ) $ ( 12,172 ) (e) $ — $ ( 3,016 )

Depreciation and tooling amortization 3,365 249 1,522 5 2,281 95 — 157 — 7,674

1 unchanged sentence

Investment-related interest income 59 — 16 — 178 386 — — — 639

Equity in net income/(loss) of affiliated companies 567 ( 258 ) 31 2 — ( 15 ) — 327

Cash outflow for capital spending 5,979 46 44 158 — — — 6,227

Total assets 68,969 3,325 134,428 51,730 — — ( 1,417 ) (b) 257,035

Revenues $ 148,980 $ 99 $ 8,978 $ — $ — $ — $ — $ 158,057

Income/(Loss) before income taxes 9,692 ( 926 ) 2,657 ( 1,008 ) ( 1,259 ) ( 12,172 ) (d) — ( 3,016 )

Equity in net income/(loss) of affiliated companies 270 ( 15 ) 412 ( 315 ) 27 1 — ( 3,263 ) (f) — ( 2,883 )

Cash outflow for capital spending (c)

4,702 1,336 26 23 58 424 — 297 — 6,866

Total assets 56,023 5,285 2,177 392 137,954 55,580 — — ( 1,527 ) (d) 255,884

External Revenues $ 101,934 $ 5,897 $ 58,058 $ 3 $ 10,290 $ 9 $ — $ — $ — $ 176,191

Intersegment Revenues (a)

38,693 629 — — — — — — ( 39,322 ) —

Total Revenues $ 140,627 $ 6,526 $ 58,058 $ 3 $ 10,290 $ 9 $ — $ — $ ( 39,322 ) $ 176,191

Income/(Loss) before income taxes $ 7,462 $ ( 4,701 ) $ 7,222 $ ( 138 ) $ 1,331 $ ( 760 ) $ ( 1,302 ) $ ( 5,147 ) (g) $ — $ 3,967

Depreciation and tooling amortization 3,378 505 1,291 12 2,354 103 — 47 — 7,690

1 unchanged sentence

Investment-related interest income 110 1 32 — 522 902 — — — 1,567

Equity in net income/(loss) of affiliated companies 667 ( 315 ) 27 1 — ( 3,263 ) (e) — ( 2,883 )

Cash outflow for capital spending 6,284 23 58 204 — 297 — 6,866

Total assets 69,933 392 137,954 49,132 — — ( 1,527 ) (b) 255,884

(a) Primarily reflects Global Redesign actions, mark-to-market adjustments for our global pension and OPEB plans, and the field service action for Takata airbag inflators, partially offset by the gain on our investment in Argo AI as a result of the transaction with Argo AI and VW in the second quarter of 2020.

(b) Primarily includes eliminations of intersegment transactions occurring in the ordinary course of business.

(c) Primarily reflects gains/(losses) on our Rivian investment and mark-to-market adjustments for our global pension and OPEB plans, partially offset by Global Redesign actions and the loss on extinguishment of debt.

(d) Primarily reflects gains/(losses) on our Rivian investment and the impairment of our Argo AI equity method investment.

(e) Primarily reflects the impairment of our Argo AI equity method investment.

Equity in net income/(loss) of affiliated companies 337 ( 37 ) 589 ( 29 ) 32 1 — ( 479 ) (h) — 414

Cash outflow for capital spending (c)

4,963 2,861 7 6 80 315 — 4 — 8,236

Total assets 58,990 13,648 2,942 207 148,521 52,521 — — ( 3,519 ) (d) 273,310

(a) Intersegment revenues only reflect finished vehicle transactions between Ford Blue, Ford Model e, and Ford Pro where there is an intersegment markup and are recognized at the time of the intersegment transaction.

(b) Primarily reflects gains/(losses) on our Rivian investment and mark-to-market adjustments for our global pension and OPEB plans, partially offset by restructuring related actions and the loss on extinguishment of debt.

(c) Ford Blue includes $ 366 million, $ 305 million, and $ 909 million of spending attributable to electric vehicles at shared manufacturing plants in 2021, 2022, and 2023, respectively.

Total electric vehicle spending, including Ford Blue and Ford Model e, was $ 882 million, $ 1,641 million, and $ 3,770 million in 2021, 2022, and 2023, respectively.

(d) Primarily includes eliminations of intersegment transactions occurring in the ordinary course of business.

(e) Primarily reflects gains/(losses) on our Rivian investment and the impairment of our Argo AI equity method investment.

(f) Primarily reflects the impairment of our Argo AI equity method investment.

(g) Primarily reflects mark-to-market adjustments for our global pension and OPEB plans, restructuring actions in Europe and China, and an accrual for the Transit Connect customs matter.

(h) Primarily reflects our share of charges from an equity method investment resulting from Ford's ongoing restructuring actions in China.

FORD MOTOR COMPANY AND SUBSIDIARIES

11 unchanged sentences

United Kingdom 7,607 1,383 8,220 1,264 8,968 1,868

Germany 6,526 3,197 6,237 2,708 6,471 2,483

Mexico 1,440 3,903 1,813 4,255 2,774 5,222

14 unchanged sentences

Deferred tax assets 1,981 ( 670 ) (d) 244 1,067

Deferred tax assets for U.S.

branch operations (e) 2,878 390 — 3,268

Total allowances deducted from assets $ 6,936 $ ( 547 ) $ 357 $ 6,032

1 unchanged sentence

Allowances deducted from assets

Credit losses $ 1,332 $ ( 306 ) $ 100 $ 926

Credit losses $ 926 $ 50 $ 119 (a) $ 857

Doubtful receivables 47 57 11 (b) 93

1 unchanged sentence

Deferred tax assets 1,067 ( 242 ) (d) 3 822

Deferred tax assets for U.S.

branch operations (e) 3,268 ( 38 ) — 3,230

Total allowances deducted from assets $ 6,032 $ ( 179 ) $ 133 $ 5,720

1 unchanged sentence

Allowances deducted from assets

Credit losses $ 926 $ 50 $ 119 $ 857

Credit losses $ 857 $ 385 $ 343 (a) $ 899

Doubtful receivables 93 30 54 (b) 69

1 unchanged sentence

Deferred tax assets 822 36 (d) 12 846

Deferred tax assets for U.S.

branch operations (e) 3,230 111 — 3,341

Total allowances deducted from assets $ 5,720 $ 531 $ 409 $ 5,842

(a) Finance receivables deemed to be uncollectible and other changes, principally amounts related to finance receivables sold and translation adjustments.

For the year ended 2020, includes $( 252 ) million related to the adoption of ASU 2016-13 for cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020.

(b) Accounts receivable deemed to be uncollectible as well as translation adjustments.

1 unchanged sentence

(d) Change in valuation allowance on deferred tax assets including translation adjustments.

(e) Deferred tax assets of U.S.

branch operations no longer requiring a valuation allowance would result in an increase in deferred tax liabilities.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures