FORD MOTOR CO [F] Filings

10-Q 1 f-20220630.htm 10-Q f-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number 1-3950

Ford Motor Company

(Exact name of Registrant as specified in its charter)


Delaware		38-0549190
(State of incorporation)		(I.R.S. Employer Identification No.)

One American Road
Dearborn,	Michigan	48126
(Address of principal executive offices)		(Zip code)

313-322-3000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbols

Name of each exchange on which registered

Common Stock, par value $.01 per share

New York Stock Exchange

6.200% Notes due June 1, 2059

FPRB

New York Stock Exchange

6.000% Notes due December 1, 2059

FPRC

New York Stock Exchange

Indicate by check mark if the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of July 22, 2022, Ford had outstanding 3,949,385,442 shares of Common Stock and 70,852,076 shares of Class B Stock.

Exhibit Index begins on page 69

FORD MOTOR COMPANY

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended June 30, 2022


	Table of Contents	Page
	Part I - Financial Information
Item 1	Financial Statements	1
	Consolidated Statements of Cash Flows	1
	Consolidated Income Statements	2
	Consolidated Statements of Comprehensive Income	2
	Consolidated Balance Sheets	3
	Consolidated Statements of Equity	4
	Notes to the Financial Statements	5
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
	Key Trends and Economic Factors Affecting Ford and the Automotive Industry	32
	Results of Operations	33
	Automotive Segment	35
	Mobility Segment	41
	Ford Credit Segment	42
	Corporate Other	45
	Interest on Debt	45
	Taxes	45
	Liquidity and Capital Resources	46
	Credit Ratings	56
	Outlook	57
	Cautionary Note on Forward-Looking Statements	58
	Non-GAAP Financial Measures That Supplement GAAP Measures	59
	Non-GAAP Financial Measure Reconciliations	61
	Supplemental Information	63
	Accounting Standards Issued But Not Yet Adopted	66
Item 3	Quantitative and Qualitative Disclosures About Market Risk	67
Item 4	Controls and Procedures	67

	Part II - Other Information
Item 1	Legal Proceedings	68
Item 6	Exhibits	69
	Signature	70

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	For the periods ended June 30,
	2021		2022
	First Half
	(unaudited)
Cash flows from operating activities
Net income/(loss)	$	3,815	$	(2,481)
Depreciation and tooling amortization	3,639		3,774
Other amortization	(715)		(608)
Provision for/(Benefit from) credit and insurance losses	(196)		(107)
Pension and other post-retirement employee benefits (“OPEB”) expense/(income) (Note 13)	(808)		(400)
Equity method investment dividends received in excess of (earnings)/losses and impairments	52		171
Foreign currency adjustments	222		60
Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments (Note 4)	(906)		7,974
Net (gain)/loss on changes in investments in affiliates (Note 4)	(332)		146
Stock compensation	183		170
Provision for/(Benefit from) deferred income taxes	345		(1,160)
Decrease/(Increase) in finance receivables (wholesale and other)	10,465		(4,611)
Decrease/(Increase) in accounts receivable and other assets	(905)		(1,856)
Decrease/(Increase) in inventory	(2,929)		(2,507)
Increase/(Decrease) in accounts payable and accrued and other liabilities	(6,438)		3,180
Other	(244)		118
Net cash provided by/(used in) operating activities	5,248		1,863

Cash flows from investing activities
Capital spending	(2,881)		(3,069)
Acquisitions of finance receivables and operating leases	(23,959)		(20,749)
Collections of finance receivables and operating leases	26,782		24,139
Proceeds from sale of business (Note 17)	144		—
Purchases of marketable securities and other investments	(17,593)		(8,065)
Sales and maturities of marketable securities and other investments	23,853		11,257
Settlements of derivatives	(205)		156
Other	37		473
Net cash provided by/(used in) investing activities	6,178		4,142

Cash flows from financing activities
Cash payments for dividends and dividend equivalents	(3)		(807)
Purchases of common stock	—		—
Net changes in short-term debt	890		595
Proceeds from issuance of long-term debt	11,688		18,868
Payments of long-term debt	(26,683)		(24,697)
Other	(90)		(199)
Net cash provided by/(used in) financing activities	(14,198)		(6,240)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1)		(368)

Net increase/(decrease) in cash, cash equivalents, and restricted cash	$	(2,773)	$	(603)

Cash, cash equivalents, and restricted cash at beginning of period (Note 7)	$	25,935	$	20,737
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(2,773)		(603)
Cash, cash equivalents, and restricted cash at end of period (Note 7)	$	23,162	$	20,134

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(in millions, except per share amounts)


	For the periods ended June 30,
	2021		2022		2021		2022
	Second Quarter				First Half
	(unaudited)
Revenues
Automotive	$	24,128	$	37,909	$	57,682	$	70,020
Ford Credit	2,603		2,256		5,266		4,537
Mobility	21		25		32		109
Total revenues (Note 3)	26,752		40,190		62,980		74,666

Costs and expenses
Cost of sales	22,904		33,191		52,201		62,227
Selling, administrative, and other expenses	2,877		2,759		5,720		5,499
Ford Credit interest, operating, and other expenses	993		1,372		2,617		2,729
Total costs and expenses	26,774		37,322		60,538		70,455
Operating income/(loss)	(22)		2,868		2,442		4,211
Interest expense on Company debt excluding Ford Credit	453		312		926		620
Other income/(loss), net (Note 4 and Note 17)	1,159		(1,823)		3,031		(6,673)
Equity in net income/(loss) of affiliated companies	51		58		130		25
Income/(Loss) before income taxes	735		791		4,677		(3,057)
Provision for/(Benefit from) income taxes	182		153		862		(576)
Net income/(loss)	553		638		3,815		(2,481)
Less: Income/(Loss) attributable to noncontrolling interests	(8)		(29)		(8)		(38)
Net income/(loss) attributable to Ford Motor Company	$	561	$	667	$	3,823	$	(2,443)

EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6)
Basic income/(loss)	$	0.14	$	0.17	$	0.96	$	(0.61)
Diluted income/(loss)	0.14		0.16		0.95		(0.61)

Weighted-average shares used in computation of earnings/(loss) per share
Basic shares	3,992		4,021		3,986		4,014
Diluted shares	4,028		4,052		4,022		4,014

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	For the periods ended June 30,
	2021		2022		2021		2022
	Second Quarter				First Half
	(unaudited)
Net income/(loss)	$	553	$	638	$	3,815	$	(2,481)
Other comprehensive income/(loss), net of tax (Note 18)
Foreign currency translation	(10)		(1,018)		279		(872)
Marketable securities	(10)		(83)		(75)		(336)
Derivative instruments	112		(94)		(189)		50
Pension and other postretirement benefits	12		12		13		20
Total other comprehensive income/(loss), net of tax	104		(1,183)		28		(1,138)
Comprehensive income/(loss)	657		(545)		3,843		(3,619)
Less: Comprehensive income/(loss) attributable to noncontrolling interests	(6)		(33)		(6)		(42)
Comprehensive income/(loss) attributable to Ford Motor Company	$	663	$	(512)	$	3,849	$	(3,577)

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions)


	December 31, 2021		June 30, 2022
	(unaudited)
ASSETS
Cash and cash equivalents (Note 7)	$	20,540	$	19,516
Marketable securities (Note 7)	29,053		17,184
Ford Credit finance receivables, net of allowance for credit losses of $282 and $217 (Note 8)	32,543		30,716
Trade and other receivables, less allowances of $48 and $76	11,370		15,037
Inventories (Note 9)	12,065		13,976
Assets held for sale (Note 17)	—		705
Other assets	3,425		3,335
Total current assets	108,996		100,469
Ford Credit finance receivables, net of allowance for credit losses of $643 and $546 (Note 8)	51,256		49,743
Net investment in operating leases	26,361		24,533
Net property	37,139		36,162
Equity in net assets of affiliated companies	4,545		4,196
Deferred income taxes	13,796		15,045
Other assets	14,942		15,607
Total assets	$	257,035	$	245,755

LIABILITIES
Payables	$	22,349	$	23,378
Other liabilities and deferred revenue (Note 12 and Note 20)	18,686		18,895
Debt payable within one year (Note 14)
Company excluding Ford Credit	3,175		1,533
Ford Credit	46,517		42,286
Liabilities held for sale (Note 17)	—		360
Total current liabilities	90,727		86,452
Other liabilities and deferred revenue (Note 12 and Note 20)	27,705		28,221
Long-term debt (Note 14)
Company excluding Ford Credit	17,200		17,833
Ford Credit	71,200		67,175
Deferred income taxes	1,581		1,837
Total liabilities	208,413		201,518

EQUITY
Common Stock, par value $0.01 per share (4,067 million shares issued of 6 billion authorized)	40		41
Class B Stock, par value $0.01 per share (71 million shares issued of 530 million authorized)	1		1
Capital in excess of par value of stock	22,611		22,653
Retained earnings	35,769		32,511
Accumulated other comprehensive income/(loss) (Note 18)	(8,339)		(9,473)
Treasury stock	(1,563)		(1,564)
Total equity attributable to Ford Motor Company	48,519		44,169
Equity attributable to noncontrolling interests	103		68
Total equity	48,622		44,237
Total liabilities and equity	$	257,035	$	245,755


The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheets above.
	December 31, 2021		June 30, 2022
	(unaudited)
ASSETS
Cash and cash equivalents	$	3,407	$	2,284
Ford Credit finance receivables, net	43,001		43,162
Net investment in operating leases	7,540		10,494
Other assets	39		199
LIABILITIES
Other liabilities and deferred revenue	$	6	$	—
Debt	38,274		41,072

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in millions, unaudited)


	Equity Attributable to Ford Motor Company
	Capital Stock		Cap. in Excess of Par Value of Stock		Retained Earnings		Accumulated Other Comprehensive Income/(Loss) (Note 18)		Treasury Stock		Total		Equity Attributable to Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	41	$	22,290	$	18,243	$	(8,294)	$	(1,590)	$	30,690	$	121	$	30,811
Net income/(loss)	—		—		3,262		—		—		3,262		—		3,262
Other comprehensive income/(loss), net	—		—		—		(76)		—		(76)		—		(76)
Common Stock issued (a)	—		(50)		—		—		—		(50)		—		(50)
Treasury stock/other	—		—		—		—		5		5		25		30
Dividends and dividend equivalents declared (b)	—		—		(3)		—		—		(3)		—		(3)
Balance at March 31, 2021	$	41	$	22,240	$	21,502	$	(8,370)	$	(1,585)	$	33,828	$	146	$	33,974
Net income/(loss)	—		—		561		—		—		561		(8)		553
Other comprehensive income/(loss), net	—		—		—		102		—		102		2		104
Common Stock issued (a)	—		168		—		—		—		168		—		168
Treasury stock/other	—		—		—		—		6		6		(20)		(14)
Dividends and dividend equivalents declared (b)	—		—		(1)		—		—		(1)		—		(1)
Balance at June 30, 2021	$	41	$	22,408	$	22,062	$	(8,268)	$	(1,579)	$	34,664	$	120	$	34,784







Balance at December 31, 2021	$	41	$	22,611	$	35,769	$	(8,339)	$	(1,563)	$	48,519	$	103	$	48,622
Net income/(loss)	—		—		(3,110)		—		—		(3,110)		(9)		(3,119)
Other comprehensive income/(loss), net	—		—		—		45		—		45		—		45
Common Stock issued (a)	1		(61)		—		—		—		(60)		—		(60)
Treasury stock/other	—		—		—		—		(1)		(1)		5		4
Dividends and dividend equivalents declared ($0.10 per share) (b)	—		—		(408)		—		—		(408)		—		(408)
Balance at March 31, 2022	$	42	$	22,550	$	32,251	$	(8,294)	$	(1,564)	$	44,985	$	99	$	45,084
Net income/(loss)	—		—		667		—		—		667		(29)		638
Other comprehensive income/(loss), net	—		—		—		(1,179)		—		(1,179)		(4)		(1,183)
Common Stock issued (a)	—		103		—		—		—		103		—		103
Treasury stock/other	—		—		—		—		—		—		2		2
Dividends and dividend equivalents declared ($0.10 per share) (b)	—		—		(407)		—		—		(407)		—		(407)
Balance at June 30, 2022	$	42	$	22,653	$	32,511	$	(9,473)	$	(1,564)	$	44,169	$	68	$	44,237

__________

(a)Includes impact of share-based compensation.

(b)Dividends and dividend equivalents declared for Common and Class B Stock.

The accompanying notes are part of the consolidated financial statements.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

Table of Contents


Footnote		Page
Note 1	Presentation	6
Note 2	New Accounting Standards	6
Note 3	Revenue	7
Note 4	Other Income/(Loss)	9
Note 5	Income Taxes	9
Note 6	Capital Stock and Earnings/(Loss) Per Share	9
Note 7	Cash, Cash Equivalents, and Marketable Securities	10
Note 8	Ford Credit Finance Receivables and Allowance for Credit Losses	13
Note 9	Inventories	17
Note 10	Other Investments	17
Note 11	Goodwill	17
Note 12	Other Liabilities and Deferred Revenue	18
Note 13	Retirement Benefits	19
Note 14	Debt	20
Note 15	Derivative Financial Instruments and Hedging Activities	21
Note 16	Employee Separation Actions and Exit and Disposal Activities	23
Note 17	Acquisitions and Divestitures	24
Note 18	Accumulated Other Comprehensive Income/(Loss)	26
Note 19	Variable Interest Entities

FORD MOTOR CO [F] Filings
FORD MOTOR CO [F-PC] Filings
FORD MOTOR CO [F-PB] Filings
FORD MOTOR CO [F-PD] Filings
10-Q	[2022-07-28]
10-Q	[2022-04-28]
10-K	[2022-02-04]
10-Q	[2021-10-28]
10-Q	[2021-07-29]
10-Q	[2021-04-29]
10-K	[2021-02-05]
10-Q	[2020-10-29]
10-Q	[2020-07-31]
10-Q	[2020-04-29]
10-K	[2020-02-05]
10-Q	[2019-10-24]
10-Q	[2019-07-25]
10-Q	[2019-04-26]
10-K	[2019-02-21]
10-Q	[2018-10-25]
10-Q	[2018-07-26]
10-Q	[2018-04-26]
10-K	[2018-02-08]
10-Q	[2017-10-26]
10-Q	[2017-07-26]
10-Q	[2017-04-27]
10-K	[2017-02-09]
10-Q	[2016-10-27]
10-Q	[2016-07-28]
10-Q	[2016-04-28]
10-K	[2016-02-11]
10-Q	[2015-10-27]
10-Q	[2015-07-28]
10-Q	[2015-04-28]
10-K	[2015-02-13]
10-Q	[2014-10-31]
10-Q	[2014-07-31]
10-Q	[2014-05-01]
10-K	[2014-02-18]
10-Q	[2013-10-31]
10-Q	[2013-07-31]
10-Q	[2013-05-01]
10-K	[2013-02-19]
10-Q	[2012-11-02]
10-Q	[2012-08-03]
10-Q	[2012-05-04]
10-K	[2012-02-21]

FORD MOTOR CO [F] Filings

FORD MOTOR CO [F-PC] Filings

FORD MOTOR CO [F-PB] Filings

FORD MOTOR CO [F-PD] Filings