Ford Motor F · USD

SEGMENT INFORMATIONWe report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Ford Blue, Ford Model e, Ford Pro, and Ford Credit. Beginning January 1, 2025, the expenses and investments for emerging business initiatives in vehicle-adjacent market segments (previously the Ford Next segment) are reflected in the reportable segments that benefit from those expenses and investments or Corporate Other. Prior period amounts were adjusted retrospectively to reflect the change.Below is a description of our reportable segments and other activities.Ford Blue SegmentFord Blue primarily includes the sale of Ford and Lincoln internal combustion engine (“ICE”) and hybrid (excluding extended range electric vehicles (“EREVs”)) 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 EVs, including EREVs, by our unconsolidated affiliates in China•All sales of vehicles manufactured and sold to other OEMsFord Model e SegmentFord Model e primarily includes the sale of our EVs (including EREVs), 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, this segment 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.

REVENUE The following tables disaggregate our revenue by major source for the years ended December 31 (in millions): 2023Company excluding Ford CreditFord CreditConsolidatedVehicles, parts, and accessories$161,052 $— $161,052 Used vehicles1,873 — 1,873 Services and other revenue (a)2,797 105 2,902 Revenues from sales and services165,722 105 165,827 Leasing income179 4,105 4,284 Financing income— 5,980 5,980 Insurance income— 100 100 Total revenues$165,901 $10,290 $176,191 2024Company excluding Ford CreditFord CreditConsolidatedVehicles, parts, and accessories$167,218 $— $167,218 Used vehicles2,175 — 2,175 Services and other revenue (a)3,099 104 3,203 Revenues from sales and services172,492 104 172,596 Leasing income214 4,217 4,431 Financing income— 7,819 7,819 Insurance income— 146 146 Total revenues$172,706 $12,286 $184,992 2025Company excluding Ford CreditFord CreditConsolidatedVehicles, parts, and accessories$167,310 $— $167,310 Used vehicles2,853 — 2,853 Services and other revenue (a)3,506 80 3,586 Revenues from sales and services173,669 80 173,749 Leasing income327 4,816 5,143 Financing income— 8,211 8,211 Insurance income— 164 164 Total revenues$173,996 $13,271 $187,267 __________(a)Includes extended service contract revenue.Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs when we transfer control of our vehicles, parts, or accessories or provide services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. For the majority of sales, this occurs when products are shipped from our manufacturing facilities. However, we defer a portion of the consideration received when there is a separate future or stand-ready performance obligation, such as extended service contracts or ongoing vehicle connectivity. Sales, value-added, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. The expected costs associated with our base warranties and field service actions are recognized as expense when the products are sold (see Note 24). We do not have any material significant payment terms related to vehicle sales, as payment is received at or shortly after the point of sale. NOTE 4. REVENUE (Continued)Company excluding Ford CreditVehicles, Parts, and Accessories.

LEASE COMMITMENTSWe lease land, dealership facilities, offices, distribution centers, warehouses, and equipment under agreements with contractual periods ranging from less than one year to 40 years. Many of our leases contain one or more options to extend. In certain dealership lease agreements, we are the tenant and we sublease the site to a dealer. In the event the sublease is terminated, we have the option to terminate the head lease. We include options that we are reasonably certain to exercise in our evaluation of the lease term after considering all relevant economic and financial factors.Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased (“right-of-use”) assets in finance lease arrangements are reported in Net property on our consolidated balance sheets. 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 also recognize in Net property “build-to-suit” arrangements during the construction period where we are involved in the construction or design of the asset and are considered the accounting owner. We do not recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. These lease payments are amortized to expense on a straight-line basis over the lease term. 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. Instead, non-lease components are included in the measurement of the lease liabilities. However, we do separate lease and non-lease components for contracts containing a significant service component (e.g., energy performance contracts). We calculate the initial lease liability as the present value of fixed payments not yet paid and variable payments that are based on a market rate or an index (e.g., CPI), measured at commencement. The majority of our leases are discounted using our incremental borrowing rate because the rate implicit in the lease is not readily determinable. All other variable payments are expensed as incurred.NOTE 17.

DEBT AND COMMITMENTS Our debt consists of short-term and long-term secured and unsecured debt securities and secured and unsecured borrowings from banks and other lenders. Debt issuances are placed directly by us or through securities dealers or underwriters and are held by institutional and retail investors. In addition, Ford Credit sponsors securitization programs that provide short-term and long-term asset-backed financing through institutional investors in the U.S. and international capital markets.Debt is reported on our consolidated balance sheets at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 19). Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income/(loss), net.NOTE 18. DEBT AND COMMITMENTS (Continued)The carrying value of Company debt excluding Ford Credit and Ford Credit debt at December 31 was as follows (in millions):Average ContractualInterest RatesCompany excluding Ford Credit2024202520242025Debt payable within one year Short-term$632 $1,355 4.0 %3.8 %Long-term payable within one year U.K. Export Finance Program784 — Public unsecured debt securities176 1,672 Convertible notes— 2,300 Other debt (including finance leases) (a)176 226 Unamortized (discount)/premium and issuance costs(12)(3)Total debt payable within one year1,756 5,550 Long-term debt payable after one year Public unsecured debt securities14,759 13,087 Convertible notes2,300 — U.K. Export Finance Program940 2,355 Other debt (including finance leases) (a)1,160 1,210 Unamortized (discount)/premium and issuance costs(261)(283)Total long-term debt payable after one year18,898 16,369 5.1 %(b)5.0 %(b)Total Company excluding Ford Credit$20,654 $21,919 Fair value of Company debt excluding Ford Credit (c)$20,178 $21,640 Ford Credit Debt payable within one year Short-term$17,413 $18,350 4.7 %3.

COMMITMENTS AND CONTINGENCIES Commitments and contingencies primarily consist of guarantees and indemnifications, litigation and claims, and warranty and field service actions.Guarantees and IndemnificationsFinancial Guarantees. Financial guarantees and indemnifications are recorded at fair value at their inception. Subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The maximum potential payments for financial guarantees were $5.3 billion and $5.4 billion at December 31, 2024 and 2025, respectively. See Note 23 for additional information. The carrying value of recorded liabilities related to financial guarantees was $144 million and $92 million at December 31, 2024 and 2025, respectively. Our financial guarantees consist of debt and lease obligations of certain joint ventures, as well as certain financial obligations of outside third parties, including suppliers, to support our business and economic growth. Expiration dates vary through 2040, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the joint venture or other third party to fulfill its obligation covered by the guarantee. In some circumstances, we are entitled to recover from a third party amounts paid by us under the guarantee.Non-Financial Guarantees. Non-financial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable we will be required to perform under a guarantee or indemnity, the probable amount of payment is recorded. The maximum potential payments and carrying values of recorded liabilities related to non-financial guarantees were de minimis at both December 31, 2024 and 2025. In the ordinary course of business, we execute contracts involving indemnifications standard in the industry and indemnifications specific to a transaction, such as the sale of a business.

INCOME TAXES We recognize income tax-related penalties in Provision for/(Benefit from) income taxes on our consolidated income statements. We recognize income tax-related interest income and expense in Other income/(loss), net on our consolidated income statements.We account for U.S. tax on global intangible low-taxed income in the period incurred, and we account for investment tax credits using the deferral method. Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax bases, and net operating loss carryforwards and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid.Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of events that have been recognized in our consolidated financial statements or tax returns and their future probability. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, we record a valuation allowance.As disclosed in Note 3, New Accounting Standards, we have prospectively adopted the guidance in ASU 2023-09, Improvements to Income Tax Disclosures.NOTE 7. INCOME TAXES (Continued)Components of Income TaxesThe components of income taxes excluding other comprehensive income/(loss) and equity in net results of affiliated companies accounted for after-tax for the years ended December 31 were as follows (in millions): 202320242025Income/(Loss) before income taxes U.S.$3,395 $3,424 $(11,550)Non-U.S.572 3,809 (280)Total$3,967 $7,233 $(11,830)Provision for/(Benefit from) income taxes Current Federal$62 $78 $71 Non-U.S.948 791 701 State and local229 107 99 Total current1,239 976 871 Deferred Federal(413)25 (1,405)Non-U.S.

SHARE-BASED COMPENSATION Under our Long-Term Incentive Plans, we may issue restricted stock units (“RSUs”), restricted stock shares (“RSSs”), and stock options. RSUs and RSSs consist of time-based and performance-based awards. The number of shares that may be granted in any year is limited to 2% of our issued and outstanding Common Stock as of December 31 of the prior calendar year. The limit may be increased up to 3% in any year, with a corresponding reduction in shares available for grants in future years. Granted RSUs generally cliff vest or ratably vest over a three-year service period. 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). Stock options ratably vest over a three-year service period and expire ten years from the grant date.The fair value of both the time-based and the internal performance metrics portion of the performance-based RSUs and RSSs is determined using the closing price of our Common Stock at grant date. For awards that include a market condition, we measure the fair value using a Monte Carlo simulation. The weighted average per unit grant date fair value for the years ended December 31, 2023, 2024, and 2025 was $12.98, $12.49, and $10.54, respectively.Time-based RSUs generally have a graded vesting feature whereby one-third of each grant vests after the first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary. The graded vesting method recognizes expense over the service period for each separately-vesting tranche, which results in accelerated recognition of expense. The fair value of time-based RSUs, RSSs, and stock options is expensed over the shorter of each separate vesting period, using the graded vesting method, or the time period an employee becomes eligible to retain the award at retirement. The fair value of performance-based RSUs and RSSs is expensed when it is probable and estimable as measured against the performance metrics over the shorter of the performance or required service periods. We measure the fair value of our stock options on the date of grant using either the Black-Scholes option-pricing model (for options without a market condition) or a Monte Carlo simulation (for options with a market condition).

ACQUISITIONS AND DIVESTITURES Company excluding Ford CreditFord Sales and Service Korea Company (“FSSK”). In the second quarter of 2025, we entered into an agreement to sell 100% of our equity interest in FSSK. The entity was classified as held for sale in the fourth quarter of 2025 once all criteria were met. Accordingly, as of December 31, 2025, we reported $49 million of held-for-sale assets, including $36 million of cash, and $18 million of held-for-sale liabilities in Other assets and Other liabilities, respectively. We determined the assets held for sale were not impaired. On January 2, 2026, we completed the sale of FSSK. The consideration received approximated the carrying value of FSSK at the time of sale. Ford Motor Company A/S (“Ford Denmark”). In the third quarter of 2024, we entered into an agreement to sell 100% of our equity interest in Ford Denmark. The entity was classified as held for sale in the fourth quarter of 2024 once all criteria were met. Accordingly, as of December 31, 2024, we reported $52 million of held-for-sale assets, including $47 million of cash, and $33 million of held-for-sale liabilities in Other assets and Other liabilities, respectively. We determined the assets held for sale were not impaired. On January 2, 2025, we completed the sale of Ford Denmark. The consideration received approximated the carrying value of Ford Denmark at the time of sale.