FORD MOTOR CO [F-PC] Filings

10-Q 1 f-20230630.htm 10-Q f-20230630

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, 2023

☐ 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

6.500% Notes due August 15, 2062

FPRD

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 24, 2023, Ford had outstanding 3,931,373,526 shares of Common Stock and 70,852,076 shares of Class B Stock.

Exhibit Index begins on page 66

FORD MOTOR COMPANY

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended June 30, 2023


	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	34
	Recent Developments	34
	Results of Operations	34
	Ford Blue Segment	36
	Ford Model e Segment	37
	Ford Pro Segment	37
	Ford Next Segment	39
	Ford Credit Segment	40
	Corporate Other	43
	Interest on Debt	43
	Taxes	43
	Liquidity and Capital Resources	44
	Credit Ratings	52
	Outlook	53
	Cautionary Note on Forward-Looking Statements	54
	Non-GAAP Financial Measures That Supplement GAAP Measures	56
	Non-GAAP Financial Measure Reconciliations	58
	Supplemental Information	60
	Accounting Standards Issued But Not Yet Adopted	63
Item 3	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4	Controls and Procedures	64

	Part II - Other Information
Item 1	Legal Proceedings	65
Item 5	Other Information	65
Item 6	Exhibits	66
	Signature	67

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,
	2022		2023
	First Half
	(unaudited)
Cash flows from operating activities
Net income/(loss)	$	(2,481)	$	3,679
Depreciation and tooling amortization	3,774		3,775
Other amortization	(608)		(554)
Provision for/(Benefit from) credit and insurance losses	(107)		212
Pension and other postretirement employee benefits (“OPEB”) expense/(income) (Note 13)	(400)		612
Equity method investment dividends received in excess of (earnings)/losses and impairments	171		142
Foreign currency adjustments	60		(97)
Net realized and unrealized (gains)/losses on cash equivalents, marketable securities, and other investments (Note 4)	7,974		163
Net (gain)/loss on changes in investments in affiliates (Note 4)	146		(17)
Stock compensation	170		238
Provision for/(Benefit from) deferred income taxes	(1,160)		3
Decrease/(Increase) in finance receivables (wholesale and other)	(4,611)		(1,473)
Decrease/(Increase) in accounts receivable and other assets	(1,856)		(1,793)
Decrease/(Increase) in inventory	(2,507)		(3,354)
Increase/(Decrease) in accounts payable and accrued and other liabilities	3,180		6,134
Other	118		165
Net cash provided by/(used in) operating activities	1,863		7,835

Cash flows from investing activities
Capital spending	(3,069)		(3,729)
Acquisitions of finance receivables and operating leases	(20,749)		(26,231)
Collections of finance receivables and operating leases	24,139		22,517
Purchases of marketable securities and other investments	(8,065)		(4,860)
Sales and maturities of marketable securities and other investments	11,257		7,584
Settlements of derivatives	156		(32)
Capital contributions to equity method investments	(36)		(1,047)
Other	509		(359)
Net cash provided by/(used in) investing activities	4,142		(6,157)

Cash flows from financing activities
Cash payments for dividends and dividend equivalents	(807)		(3,794)
Purchases of common stock	—		—
Net changes in short-term debt	595		(658)
Proceeds from issuance of long-term debt	18,868		26,401
Payments of long-term debt	(24,697)		(22,213)
Other	(199)		(197)
Net cash provided by/(used in) financing activities	(6,240)		(461)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(368)		66

Net increase/(decrease) in cash, cash equivalents, and restricted cash	$	(603)	$	1,283

Cash, cash equivalents, and restricted cash at beginning of period (Note 7)	$	20,737	$	25,340
Net increase/(decrease) in cash, cash equivalents, and restricted cash	(603)		1,283
Cash, cash equivalents, and restricted cash at end of period (Note 7)	$	20,134	$	26,623

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,
	2022		2023		2022		2023
	Second Quarter				First Half
	(unaudited)
Revenues
Company excluding Ford Credit	$	37,934	$	42,427	$	70,129	$	81,512
Ford Credit	2,256		2,527		4,537		4,916
Total revenues (Note 3)	40,190		44,954		74,666		86,428

Costs and expenses
Cost of sales	33,191		37,471		62,227		72,140
Selling, administrative, and other expenses	2,759		2,750		5,499		5,256
Ford Credit interest, operating, and other expenses	1,372		2,272		2,729		4,458
Total costs and expenses	37,322		42,493		70,455		81,854
Operating income/(loss)	2,868		2,461		4,211		4,574
Interest expense on Company debt excluding Ford Credit	312		304		620		612
Other income/(loss), net (Note 4)	(1,823)		255		(6,673)		479
Equity in net income/(loss) of affiliated companies	58		(124)		25		6
Income/(Loss) before income taxes	791		2,288		(3,057)		4,447
Provision for/(Benefit from) income taxes	153		272		(576)		768
Net income/(loss)	638		2,016		(2,481)		3,679
Less: Income/(Loss) attributable to noncontrolling interests	(29)		99		(38)		5
Net income/(loss) attributable to Ford Motor Company	$	667	$	1,917	$	(2,443)	$	3,674

EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 6)
Basic income/(loss)	$	0.17	$	0.48	$	(0.61)	$	0.92
Diluted income/(loss)	0.16		0.47		(0.61)		0.91

Weighted-average shares used in computation of earnings/(loss) per share
Basic shares	4,021		4,003		4,014		3,996
Diluted shares	4,052		4,041		4,014		4,035

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	For the periods ended June 30,
	2022		2023		2022		2023
	Second Quarter				First Half
	(unaudited)
Net income/(loss)	$	638	$	2,016	$	(2,481)	$	3,679
Other comprehensive income/(loss), net of tax (Note 18)
Foreign currency translation	(1,018)		278		(872)		771
Marketable securities	(83)		(44)		(336)		66
Derivative instruments	(94)		(369)		50		(424)
Pension and other postretirement benefits	12		3		20		6
Total other comprehensive income/(loss), net of tax	(1,183)		(132)		(1,138)		419
Comprehensive income/(loss)	(545)		1,884		(3,619)		4,098
Less: Comprehensive income/(loss) attributable to noncontrolling interests	(33)		103		(42)		9
Comprehensive income/(loss) attributable to Ford Motor Company	$	(512)	$	1,781	$	(3,577)	$	4,089

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, 2022		June 30, 2023
	(unaudited)
ASSETS
Cash and cash equivalents (Note 7)	$	25,134	$	26,406
Marketable securities (Note 7)	18,936		16,415
Ford Credit finance receivables, net of allowance for credit losses of $255 and $260 (Note 8)	38,720		42,557
Trade and other receivables, less allowances of $105 and $101	15,729		14,482
Inventories (Note 9)	14,080		17,703
Other assets	3,877		4,149
Total current assets	116,476		121,712
Ford Credit finance receivables, net of allowance for credit losses of $590 and $613 (Note 8)	49,903		52,567
Net investment in operating leases	22,772		21,662
Net property	37,265		38,503
Equity in net assets of affiliated companies	2,798		3,578
Deferred income taxes	15,552		15,860
Other assets	11,118		12,109
Total assets	$	255,884	$	265,991

LIABILITIES
Payables	$	25,605	$	27,749
Other liabilities and deferred revenue (Note 12 and Note 20)	21,097		23,925
Debt payable within one year (Note 14)
Company excluding Ford Credit	730		410
Ford Credit	49,434		48,931

Total current liabilities	96,866		101,015
Other liabilities and deferred revenue (Note 12 and Note 20)	25,497		25,754
Long-term debt (Note 14)
Company excluding Ford Credit	19,200		19,169
Ford Credit	69,605		74,726
Deferred income taxes	1,549		1,721
Total liabilities	212,717		222,385

EQUITY
Common Stock, par value $0.01 per share (4,084 million shares issued of 6 billion authorized)	41		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	22,832		23,029
Retained earnings	31,754		31,577
Accumulated other comprehensive income/(loss) (Note 18)	(9,339)		(8,924)
Treasury stock	(2,047)		(2,047)
Total equity attributable to Ford Motor Company	43,242		43,677
Equity attributable to noncontrolling interests	(75)		(71)
Total equity	43,167		43,606
Total liabilities and equity	$	255,884	$	265,991


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, 2022		June 30, 2023
	(unaudited)
ASSETS
Cash and cash equivalents	$	2,274	$	2,421
Ford Credit finance receivables, net	49,142		52,504
Net investment in operating leases	12,545		8,929
Other assets	264		279
LIABILITIES
Other liabilities and deferred revenue	$	2	$	—
Debt	45,451		47,891

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, 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







Balance at December 31, 2022	$	42	$	22,832	$	31,754	$	(9,339)	$	(2,047)	$	43,242	$	(75)	$	43,167
Net income/(loss)	—		—		1,757		—		—		1,757		(94)		1,663
Other comprehensive income/(loss), net	—		—		—		551		—		551		—		551
Common Stock issued (a)	—		57		—		—		—		57		—		57
Treasury stock/other	—		—		—		—		—		—		—		—
Dividends and dividend equivalents declared ($0.80 per share) (b)	—		—		(3,241)		—		—		(3,241)		—		(3,241)
Balance at March 31, 2023	$	42	$	22,889	$	30,270	$	(8,788)	$	(2,047)	$	42,366	$	(169)	$	42,197
Net income/(loss)	—		—		1,917		—		—		1,917		99		2,016
Other comprehensive income/(loss), net	—		—		—		(136)		—		(136)		4		(132)
Common Stock issued (a)	—		140		—		—		—		140		—		140
Treasury stock/other	—		—		—		—		—		—		(5)		(5)
Dividends and dividend equivalents declared ($0.15 per share) (b)	—		—		(610)		—		—		(610)		—		(610)
Balance at June 30, 2023	$	42	$	23,029	$	31,577	$	(8,924)	$	(2,047)	$	43,677	$	(71)	$	43,606

__________

(a)Includes impact of share-based compensation.

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

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)	25
Note 19	Variable Interest Entities	26
Note 20	Commitments and Contingencies	27
Note 21	Segment Information	30

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. PRESENTATION

For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referenced to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, instructions to the Quarterly Report on Form 10-Q, and Rule 10-01 of Regulation S-X. We reclassified certain prior year amounts in our consolidated financial statements to conform to the current year presentation.

In the opinion of management, these unaudited financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods, and at the dates, presented. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K Report”).

NOTE 2. NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

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 $269 million at December 31, 2022 and June 30, 2023, respectively. The amount settled through the SCF program during the second quarter and first half of 2023 was $485 million and $937 million, respectively.

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
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

Accounting Standards Issued But Not Yet Adopted

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.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. REVENUE

The following tables disaggregate our revenue by major source for the periods ended June 30 (in millions):


	Second Quarter 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	36,831	$	—	$	36,831
Used vehicles	373		—		373
Services and other revenue (a)	677		52		729
Revenues from sales and services	37,881		52		37,933

Leasing income	53		1,166		1,219
Financing income	—		1,026		1,026
Insurance income	—		12		12
Total revenues	$	37,934	$	2,256	$	40,190

	Second Quarter 2023
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	41,241	$	—	$	41,241
Used vehicles	457		—		457
Services and other revenue (a)	683		49		732
Revenues from sales and services	42,381		49		42,430

Leasing income	46		1,029		1,075
Financing income	—		1,426		1,426
Insurance income	—		23		23
Total revenues	$	42,427	$	2,527	$	44,954

	First Half 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	67,822	$	—	$	67,822
Used vehicles	802		—		802
Services and other revenue (a)	1,399		71		1,470
Revenues from sales and services	70,023		71		70,094

Leasing income	106		2,377		2,483
Financing income	—		2,066		2,066
Insurance income	—		23		23
Total revenues	$	70,129	$	4,537	$	74,666

	First Half 2023
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	79,168	$	—	$	79,168
Used vehicles	926		—		926
Services and other revenue (a)	1,328		66		1,394
Revenues from sales and services	81,422		66		81,488

Leasing income	90		2,078		2,168
Financing income	—		2,727		2,727
Insurance income	—		45		45
Total revenues	$	81,512	$	4,916	$	86,428

__________

(a)Includes extended service contract revenue.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3. REVENUE (Continued)

The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights and marketing incentives we offer to our customers and their customers. Estimates of marketing incentives are based on expected retail and fleet sales volumes, mix of products to be sold, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will impact these estimates. As a result of changes in our estimate of marketing incentives, we recorded an increase of $152 million in the second quarter of 2022 and a decrease of $3 million in the second quarter of 2023 related to revenue recognized in prior periods.

We had a balance of $4.4 billion and $4.6 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2022 and June 30, 2023, respectively. We expect to recognize approximately $800 million of the unearned amount in the remainder of 2023, $1.3 billion in 2024, and $2.5 billion thereafter. We recognized $352 million and $374 million of unearned amounts from prior years as revenue during the second quarter of 2022 and 2023, respectively, and $717 million and $754 million in the first half of 2022 and 2023, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. We had a balance of $315 million and $320 million in deferred costs as of December 31, 2022 and June 30, 2023, respectively. We recognized $22 million and $25 million of amortization during the second quarter of 2022 and 2023, respectively, and $44 million and $51 million in the first half of 2022 and 2023, respectively.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4. OTHER INCOME/(LOSS)

The amounts included in Other income/(loss), net for the periods ended June 30 were as follows (in millions):


	Second Quarter				First Half
	2022		2023		2022		2023
Net periodic pension and OPEB income/(cost), excluding service cost (Note 13)	$	430	$	(167)	$	889	$	(332)
Investment-related interest income	89		372		150		720
Interest income/(expense) on income taxes	2		(2)		7		(6)
Realized and unrealized gains/(losses) on cash equivalents, marketable securities, and other investments (a)	(2,520)		(112)		(7,974)		(163)
Gains/(Losses) on changes in investments in affiliates	(21)		13		(146)		17

Royalty income	111		127		255		230
Other	86		24		146		13
Total	$	(1,823)	$	255	$	(6,673)	$	479

__________

(a) Includes a $2.4 billion loss and a $6 million loss on our Rivian investment in the second quarter of 2022 and 2023, respectively, and a $7.9 billion loss and a $31 million loss in the first half of 2022 and 2023, respectively.

NOTE 5. INCOME TAXES

For interim tax reporting, we estimate one single effective tax rate for tax jurisdictions not subject to a valuation allowance, which is applied to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

NOTE 6. CAPITAL STOCK AND EARNINGS/(LOSS) PER SHARE

Earnings/(Loss) Per Share Attributable to Ford Motor Company Common and Class B Stock

Basic and diluted earnings/(loss) per share were calculated using the following (in millions):


	Second Quarter				First Half
	2022		2023		2022		2023
Net income/(loss) attributable to Ford Motor Company	$	667	$	1,917	$	(2,443)	$	3,674

Basic and Diluted Shares
Basic shares (average shares outstanding)	4,021		4,003		4,014		3,996
Net dilutive options, unvested restricted stock units, unvested restricted stock shares, and convertible debt (a)	31		38		—		39
Diluted shares	4,052		4,041		4,014		4,035

__________

(a) In the first half of 2022, there were 43 million shares excluded from the calculation of diluted earnings/(loss) per share, due to their anti-dilutive effect.

Item 1. Financial Statements (Continued)

FORD MOTOR COMPANY AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The fair values of cash, cash equivalents, and marketable securities measured at fair value on a recurring basis were as follows (in millions):


		December 31, 2022
	Fair Value Level	Company excluding Ford Credit		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	3,295	$	1,045	$	4,340
U.S. government agencies	2	2,245		150		2,395
Non-U.S. government and agencies	2	1,048		199		1,247
Other cash equivalents	2	10		—		10
Corporate debt	2	593		792		1,385
Total marketable securities classified as cash equivalents		7,191		2,186		9,377
Cash, time deposits, and money market funds		7,550		8,207		15,757
Total cash and cash equivalents		$	14,741	$	10,393	$	25,134

Marketable securities
U.S. government	1	$	4,947	$	187	$	5,134
U.S. government agencies	2	2,641		221		2,862
Non-U.S. government and agencies	2	2,625		658		3,283
Corporate debt	2	6,755		266		7,021
Equities (a)	1	223		—		223
Other marketable securities	2	252		161		413
Total marketable securities		$	17,443	$	1,493	$	18,936

Restricted cash		$	79	$	127	$	206


		June 30, 2023
	Fair Value Level	Company excluding Ford Credit		Ford Credit		Consolidated
Cash and cash equivalents
U.S. government	1	$	4,038	$	1,252	$	5,290
U.S. government agencies	2	3,055		650		3,705
Non-U.S. government and agencies	2	902		441		1,343
Corporate debt	2	539		756		1,295
Total marketable securities classified as cash equivalents		8,534		3,099		11,633
Cash, time deposits, and money market funds		6,411		8,362		14,773
Total cash and cash equivalents		$	14,945	$	11,461	$	26,406

Marketable securities
U.S. government	1	$	4,612	$	281	$	4,893
U.S. government agencies	2	2,361		319		2,680
Non-U.S. government and agencies	2	2,307		577		2,884
Corporate debt	2	5,245		271		5,516
Equities (a)	1	29		—		29
Other marketable securities	2	255		158		413
Total marketable securities		$	14,809	$	1,606	$	16,415

Restricted cash		$	86	$	131	$

FORD MOTOR CO [F-PC] Filings
FORD MOTOR CO [F] Filings
FORD MOTOR CO [F-PB] Filings
FORD MOTOR CO [F-PD] Filings
10-Q	[2023-07-28]
10-Q	[2023-05-03]
10-K	[2023-02-03]
10-Q	[2022-10-27]
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-PC] Filings

FORD MOTOR CO [F] Filings

FORD MOTOR CO [F-PB] Filings

FORD MOTOR CO [F-PD] Filings