FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EQUITY (in millions) Equity Attributable to Ford Motor Company Accumulated Other Cap. in Excess of Equity Attributable Capital Stock Par Value Retained Earnings Comprehensive Income/(Loss) Treasury Stock Total to Non- Total (Note 23) of Stock controlling Interests Equity Balance at December 31, 2017 Net income Other comprehensive income/(loss), net of tax $ 41 $ 21,843 $ 21,906 $ (6,959) $ (1,253) $ 35,578 $ 28 $ 35,606 - 3,677 3,677 18 3,695 - - (407) (407) (407) Common stock issued 163 163 163 Treasury stock/other (164) (164) (164) Cash dividends declared (a) - (2,915) (2,915) (12) (2,927) Balance at December 31, 2018 $ 41 $ 22,006 $ 22,668 (7,366) $ (1,417) $ 35,932 34 35,966 Balance at December 31, 2018 $ 41 $ 22,006 $ 22,668 (7,366) $ (1,417) $ 35,932 34 35,966 Adoption of accounting standards Net income Other comprehensive income/(loss), net of tax Common stock issued Treasury stock/other Cash dividends declared (a) - 13 - 13 - 13 - 47 47 37 84 (362) (362) (362) 159 159 159 (196) (196) (26) (222) Balance at December 31, 2019 41 $ 22,165 (2,408) 20,320 (2,408) (2,408) -7728 $ (1,613) $ 33,185 45 33,230 Balance at December 31, 2019 41 $ 22,165 $ Adoption of accounting standards 20,320 (202) (7,728) $ (1,613) $ 33,185 45 33,230 (202) (202) Net income (1,279) (1,279) 3 (1,276) Other comprehensive income/(loss), net of tax (566) (566) (1) (567) Common stock issued 125 125 125 Treasury stock/other 23 23 86 109 Dividend and dividend equivalents declared (a) -596 (596) (12) (608) Balance at December 31, 2020 $ 41 $ 22,290 $ 18,243 -8294 $ (1,590) $ 30,690 $ 121 $ 30,811 (a) Includes impacts of share-based compensation. (b) We declared dividends per share of Common and Class B Stock of $0.73, $0.60, and $0.15 per share in 2018, 2019 and 2020, respectively. FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) 2018 For the years ended December 31, 2019 2020 Cash Flows from Operating Activities Net income Depreciation and tooling amortization 3,695 $ 84 (1,276) 9,385 9,689 Other amortization (972) (1,199) 8,751 (1,294) Held-for-sale impairment charges (Note 22) 0 804 23 Brazil manufacturing exit non-cash charges (excluding accelerated depreciation of $145) (Note 21) 0 0 1,159 Provision for credit and insurance losses 504 413 929 Pension and other postretirement employee benefits ("OPEB") expense/(income) 400 2,625 1,027 Equity investment (earnings)/losses in excess of dividends received 206) 203 130 Foreign currency adjustments Net (gain)/loss on changes in investments in affiliates Stock compensation Net change in wholesale and other receivables Provision for deferred income taxes 529 (54) (420) (42)) (29) (3,446) 191 228 199 0 0 0 (197) (1,370) (269) Decrease/(Increase) in finance receivables (wholesale and other) (2,408) 1,554 12,104 Decrease/(Increase) in accounts receivable and other assets (2,239) (816) (63) Decrease/(Increase) in inventory (828) 206 148 Increase/(Decrease) in accounts payable and accrued and other liabilities 6,781 5,260 6,809 Other 17 41 (242) Net Cash Provided by/(used in) Operating Activities 15,022 17,639 24,269 Cash Flows from Investing Activities Capital spending Acquisitions of finance receivables and operating leases Collections of finance receivables and operating leases Proceeds from sale of business (Note 22) Purchases of marketable and other securities (7,785) (7,632) (5,742) (62,924) (55,576) (55,901) 50,880 50,182 48,746 0 0 1,340 (17,140) (17,472) (39,624) Sales and maturities of marketable and other securities 20,527 16,929 32,395 Settlements of derivatives 358 (114) (323) Other (177) (38) 494 Net Cash Provided by/(used in) Investing Activities (16,261) (13,721) (18,615) Cash Flows from Financing Activities Cash dividends (2,905) (2,389) (596) Purchases of common stock (164) (237) 0 Net changes in short-term debt (2,819) (1,384) (2,291) Proceeds from issuance of long-term debt 50,130 47,604 65,900 Principal payments on long-term debt (44,172) (46,497) (60,514) Other (192) (226) (184) Net Cash Provided by/(used in) Financing Activities (122) (3,129) 2,315 Effect of exchange rate changes on cash and cash equivalents Net Increase/(Decrease) in Cash and Cash Equivalents (370) 45 225 (1,731) 834 8,194 Cash and Cash Equivalents, at January 1 (Note 9) Net increase/(decrease) in cash and cash equivalents Cash and Cash Equivalents at December 31 (Note 9) 18,638 16,907 (1,731) 834 16,907 17,741 17,741 8,194 25,935 FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) ASSETS Cash and cash equivalents (Note 9) Marketable securities (Note 9) Ford Credit finance receivables, net (Note 10) Trade and other receivables, less allowances of $63 and $84 Inventories (Note 11) Assets held for sale (Note 2, Note 10, Note 22) Other assets Total Current Assets December 31, December 31, 2019 2020 $ 17,504 $ 25,243 17,147 24,718 53,651 42,401 9,237 9,993 10,786 10,808 2,383 47 3,339 3,534 114,047 116,744 Ford Credit finance receivables, net (Note 10) 53,703 55,277 Net investment in operating leases (Note 13) 29,230 27,951 Net property (Note 14) 36,469 37,083 Equity in net assets of affiliated companies (Note 15) 2,519 4,901 Deferred income taxes (Note 7) 11,863 12,423 Other assets 10,706 12,882 258,537 267,261 Total Assets LIABILITIES Payables 20,673 22,204 Other liabilities and deferred revenue (Note 16) 22,987 23,645 Automotive debt payable within one year (Note 19) 1,445 1,194 Ford Credit debt payable within one year (Note 19) 52,371 49,969 Other debt payable within one year (Note 19) 130 180 Liabilities held for sale (Note 22) 526 0 Total Current Liabilities 98,132 97,192 Other liabilities and deferred revenue (Note 16 and Note 25) 25,324 28,379 Automotive long-term debt (Note 19) 13,233 22,342 Ford Credit long-term debt (Note 19) 87,658 87,708 Other long-term debt (Note 19) 470 291 Deferred income taxes (Note 7) 490 538 Total Liabilities 225,307 236,450 EQUITY Common Stock, par value $.01 per share (4,000 million shares issued, 6 billion authorized) Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) 40 40 1 1 Capital in excess of par value of stock 22,165 22,290 Retained earnings 20,320 18,243 Accumulated other comprehensive income/(loss) (Note 21) (7,728) (8,294) Treasury stock (92 million shares) Total Equity attributable to Ford Motor Company Equity attributable to noncontrolling interests Total Equity Total Liabilities and Equity (1,613) (1,590) 33,185 30,690 45 121 33,230 258,537 30,811 267,261 Questions for the Financial Statements of Ford Motor Company 1. What is the company's fiscal year-end? 2. What was the company's Gross Profit on Automotive Sales for each year shown? (in Millions) 2020 2018 2019 3. 4. What was the company's Gross Profit Margin % on Automotive Sales for each year shown? Is their performance of operations improving? (GP%= GP/Sales) 2018 2019 2020 What was Operating Income (Income from Operations) for each year shown? (in Millions) 2018 2019 2020 5. List all the "Non-Operating" or "Other" Gains and Losses/ Revenues and Expenses reported on the Income Statement. [Remember, these are items listed after "Operating Income".] 6. 7. 8. 9. 10. What were Earnings Before Income Taxes for each year shown? (in Millions) 2018 2019 2020 What was the company's Profit Margin % for each year shown? (Use Total Revenue in Ratio) 2018 2019 2020 Are there any gains or losses from Discontinued Operations reported on the Income Statement for any given year? If so, what year and how much? What was Basic [also called "Undiluted"] Earnings Per Share for 2020? [Found at the bottom of the Income Statement.] How many total shares (Class A and B) are considered Issued and how many shares were in Treasury at December 31, 2020? [See Equity Section of Balance Sheet] 11. 12. # of Shares Issued # of Shares in Treasury How many shares must be Outstanding [in the hands of stockholders] at December 31, 2020- considering what you know from question #10? Write out [from the book if necessary] a definition for Comprehensive Income. 13. 14. 15. What is Comprehensive Income [attributable to Ford Motor Co. only] as of December 31, 2020? Is Comprehensive Income [attributable to Ford Motor Co only] for the year 2020 higher or lower than Net Income reported on the Income Statement? What was the total of Other Comprehensive Income adjustments for the 2020 fiscal year? 16. List all the items reported on the Financial Statements that are part of Other Comprehensive Income. 17. What is the company's balance in Accumulated Other Comprehensive Income at December 31, 2020? 18. On which two statements should you be able to find Accumulated Other Comprehensive Income to-date? 19. Did the company pay Dividends for 2020? If so, how much? 20. 20 On which two statements should you be able to find the amount of cash Dividends paid for the period? 21. What is the amount of Cash generated from operations for each year shown? (in Millions) 22. 23. 2018 2019 2020 What is the total increase/decrease in Cash for each year shown? (in Millions) 2018 2019 2020 In the Investing Activities section of the Statement of Cash Flows, which reported event caused the largest increase of cash flow for the year 2020? Which reported event in the Investing Activities caused the largest decrease of cash flow for the year 2020? 24. In the Financing Activities section of the Statement of Cash Flows, which reported event caused the largest increase of cash flow for the year 2020? Which reported event in the Financing Activities caused the largest decrease of cash flow for the year 2020? 25. Which major section of the Statement of Cash Flows [Operating, Investing, or Financing] provided the greatest net cash inflow for 2020? 26. Which major section of the Statement of Cash Flows [Operating, Investing, or Financing] provided the greatest net cash outflow for 2020? 27. Calculate the following ratios for each year shown: Ratio: Current Ratio Current Assets Current Liabilities 28. Acid Test Ratio Quick Assets Current Liabilities Debt to Equity Ratio Total Debt Total Equity Times Interest Earned Ratio EBIT** Interest Expense **EBIT same as Income bf Taxes + Interest Expense 2019 2020 How would you read each of the ratios - for example, the Current Ratio? For every $1.00 of 28. What is your assessment of Ford Motor Company's financial position at its 2020 yearend? Revenues Automotive Ford Credit Mobility FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2018 2019 2020 $ 148,294 $ 143,599 $ 115,885 12,018 12,260 11,203 26 41 56 160,338 155,900 127,144 Total Revenues (Note 4) Less: Costs and Expenses Cost of sales - Automotive 136,269 134,693 112,752 Selling, administrative, and other expenses 11,403 11,161 10,193 Ford Credit interest and other operating expenses 9,463 9,472 8,607 Total costs and expenses 157,135 155,326 131,552 Income/(Loss) From Operations 3,203 574 (4,408) Other Revenues and Expenses Interest expense Other income/(loss), net (Note 5) Equity in net income of affiliated companies Income Before Income Taxes (1,228) (1,020) (1,649) 2,247 (226) 4,899 123 32 42 4,345 (640) (1,116) Less: Provision for/(Benefit from) income taxes (Note 7) Net Income 650 (724) 160 3,695 84 (1,276) Less: Income/(Loss) attributable to noncontrolling interests Net Income attributable to Ford Motor Company 18 37 3 $ 3,677 $ 47 $ (1,279) Basic EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8) $ $ Diluted 0.93 0.92 0.01 $ 0.01 (0.32) (0.32) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) Net income Other Comprehensive Income/(loss), net of tax (Note 21) Foreign currency translation Marketable securities Derivative instruments Pension and other postretirement benefits Total Other Comprehensive Income/(loss), net of tax Comprehensive income Less: Comprehensive income/(loss) attributable to noncontrolling interests Comprehensive Income attributable to Ford Motor Company The accompanying notes are part of the consolidated financial statements. For the years ended December 31, 2018 2019 2020 $ 3,695 $ 84 $ (1,276) (523) 174 (901) (11) 130 85 183 (689) 222 (56) 23 27 (407) (362) (567) 3,288 (278) (1,843) 18 37 2 $ 3,270 $ (315) $ (1,845)