Cash Flow Statement – Ford Motor Company

In a two- to three-page paper (not including the title and reference pages), explain the purpose of a cash flow statement and how it reflects the firm’s financial status. Include important points that an analyst would use in assessing the financial condition of the company.  Also, analyze Ford Motor Company’s cash flow from its

2012 Annual Report

.

Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.

Profitable Growth for All
Ford Motor Company 2012 Annual Report

Ford Motor Company | 2012 Annual Report
On the Cover
The One Ford plan enables accelerated development of products
that customers truly want and value, resulting in a full-line of cars,
utilities and trucks that meet and exceed owner expectations
across global markets. The upper photo includes the stylish Ford
Focus hatchback, the sporty subcompact Fiesta ST and the
distinctive Escape utility vehicle. From left to right, lower photos
illustrate the innovative new Lincoln MKZ, the family-friendly Ford
B-MAX and the iconic F-150 pickup truck.
Revenues 2012 2011
Worldwide wholesale unit volumes by automotive segment (in thousands)
Ford North America 2,784 2,686
Ford South America 498 506
Ford Europe 1,353 1,602
Ford Asia Pacific Africa 1,033 901
Total 5,668 5,695
Revenues (in millions)
Automotive $ 126,567 $ 128,168
Financial Services 7,685 8,096
Total $ 134,252 $ 136,264
Financial Results
Income before income taxes (in millions)
Automotive $ 6,010 $ 6,250
Financial Services 1,710 2,431
Total $ 7,720 $ 8,681
Amounts Attributable to Ford Motor Company
Net income (in millions) $ 5,665 $ 20,213
Diluted net income per share of Common
and Class B Stock $ 1.42 $ 4.94
Cash and Spending
Automotive capital expenditures
Amount (in billions) $ 5.5 $ 4.3
As a percentage of Automotive sales 4.3% 3.3%
Automotive cash at year end (in billions)
Automotive gross cash (a) $ 24.3 $ 22.9
– Cash net of Automotive debt 10.0 9.8
Shareholder Value
Dividends paid per share $ 0.20 $ 0.00
Total shareholder returns % (b) 23% (36)%
Operating Highlights
Content
1 More Products People Want
2 A Message from the Executive Chairman
3 A Message from the President and CEO
7 Board of Directors and Executives
8 Shareholder Information
9 Financial Content
161 Global Overview
(a) Automotive gross cash includes cash and cash equivalents and net marketable securities.
(b) Source: Standard & Poor’s, a division of the McGraw Hill Companies, Inc.

Ford Motor Company | 2012 Annual Report 1
C
A
R
S
T
R
U
C
K
S
LI
N
C
O
LN
U
T
IL
IT
IE
S
More Products People Want
Ford designs, builds and sells cars, utilities and trucks of all sizes to meet the needs of a diverse global customer base.
From small cars such as the Ka and Fiesta to large trucks like the venerable F-150 and Super Duty, Ford Motor Company
vehicles cover the full spectrum of global automobile requirements.
Small
Sporting a refreshed look, the Fiesta boasts
the three-cylinder 1-liter EcoBoost engine
providing better power and fuel efficiency
than previous models. The Ka and Figo
round out a global lineup that offers
premium features in smaller packages.
Small
The EcoSport, a market leader in
South America, debuted globally.
This SUV is specifically designed
for the urban environment in South
America, India and Thailand and is
now offered in China.
Small
The Transit Connect provides highly
configurable interiors, generous cargo
space, easy loading and unloading,
and exceptional maneuverability
with car-like driving dynamics and
safety features.
The new Lincoln brand will be defined
by great new luxury vehicles, such as the
new MKZ, that feature unique style and
innovative technology. These elements
enable Lincoln to appeal to today’s new
luxury customer.
Lincoln introduced the MKC Concept,
a vision of how Lincoln will enter the
industry’s fastest-growing segment –
small luxury utilities. The MKC Concept
builds on the foundation of the Lincoln
design DNA found in the new MKZ.
Medium
The C-MAX Hybrid and C-MAX Energi
plug-in hybrid, two ecofriendly yet practical
vehicles large enough to fit a family,
debuted in 2012. In the same segment,
the redesigned Ford Focus is one of the
top-selling vehicles in the world.
Medium
The redesigned Kuga offers class-leading
technology, fuel efficiency, safety, and
comfort in Europe, South America and
Asia. Known as Escape in North America,
three robust engine options provide strong
fuel economy and technological features.
Medium
The new Ranger is the truck for work and
play in Europe, South America, Asia and
Africa; offered in three versatile cab
bodystyles. It comes with a choice of two
powerful and economical diesel engines,
and with a 4×2 or 4×4 drivetrain.
Large
The Mondeo, known as the Fusion in North
America, will debut its striking new look next
year in Europe. Both offer a wide array of
driver assist technologies. Fusion offers a
Hybrid and Energi plug-in hybrid, providing
enhanced fuel economy in a stylish package.
Large
The redesigned, sleeker Explorer
combines enhanced fuel economy
with new safety features such as Curve
Control, which can slow the vehicle by
up to 10 mph if it senses a curve is being
taken too fast.
Large
F-Series Trucks are the ultimate
work tool for various industries. The
dependable F-150 is the top-selling
light-duty pickup in the U.S. and the
F-Series Super Duty is the most
popular heavy-duty truck.
Fiesta
EcoSport
Transit
Connect
Lincoln MKZ Lincoln MKC
Concept
C-MAX Mondeo
Kuga Explorer
F-Series
For detailed product and
financial information, view our
full online annual report at:
www.annualreport.ford.com
Ranger

2 Ford Motor Company | 2012 Annual Report
“ WE ARE ANTICIPATING
NEW CHALLENGES
AND OPPORTUNITIES
THAT ARE EMERGING,
SPECIFICALLY THOSE
AROUND THE FUTURE
OF TRANSPORTATION.”
In 2012 Ford Motor Company continued to go further to meet
the needs of our customers, the challenges of our industry
and the issues confronting our world. Our efforts produced
strong financial results and our fourth year in a row of
positive net income.
We expect 2013 to be another strong year for our company.
We anticipate our outstanding performance in North
America will continue, with higher pre-tax profits than in
2012. We are refreshing our entire product line in South
America and continuing to invest for growth in Asia Pacific
Africa. The transformation of our European operations,
which is aimed at achieving profitability under difficult
economic conditions, is on track and ongoing.
We will continue to focus on producing vehicles with best-
in-class quality, fuel efficiency, safety, smart design and
value – built on global platforms. They will help us toward
our goal of increased global sales and market share, as
well as support our ongoing commitment to reducing the
environmental impact of our vehicles and operations.
Our strong showing in the electrified vehicle market is a
good example of how great products can help build a strong
business as well as a better world. In 2012 we introduced six
new electrified vehicles in North America, including hybrid,
plug-in hybrid and pure battery electric models. By offering
a variety of vehicles, we make it easier for customers to
embrace fuel-saving technologies.
As a result of our aggressive move into this growing segment
we sold more hybrids in the U.S. in the fourth quarter of
2012 than in any other quarter in our history, and that strong
momentum has continued in 2013.
Looking further ahead, we are anticipating new challenges
and opportunities that are emerging, specifically those
around the future of transportation. Currently there are
a billion vehicles on the road worldwide, a number that
is expected to double by 2020 and double again by mid-
century. As the number of vehicles on the road continues to
grow, mobility issues are expected to emerge in many major
urban areas, potentially presenting a serious challenge to
economic, social and environmental progress.
To help address this issue, we are committed to being the
automotive leader in wireless communication technology,
developing vehicles that communicate with each other and
the world around them to improve safety and reduce traffic
congestion.
As we move forward, our employees around the world
continue to work together as a global team. We have a
great plan, outstanding leadership and positive momentum.
We are determined to keep going further so that we
can continue rewarding our shareholders and all of our
stakeholders.
Thank you for your continued support of our efforts.
William Clay Ford, Jr.
Executive Chairman
March 14, 2013
A Message from the Executive Chairman

Ford Motor Company | 2012 Annual Report 3
“ OUR PROVEN ONE FORD
PLAN PUT US ON THE
PATH TO PROFITABLE
GROWTH, AND WE ARE
CONFIDENT IT WILL
KEEP US ON THAT PATH
GOING FORWARD.”
A Message from the President and CEO
Ford Motor Company continued on our path to deliver
profitable growth in 2012 by following our proven One Ford
plan, despite the ongoing challenges in the global market.
Along the way, we achieved several important milestones,
including restoring Ford’s investment grade status and
reclaiming the Ford Blue Oval, resuming regular dividend
payments to our shareholders and achieving 14 straight
quarters of operating profit.
In a strong North America market, we set full year records for
pre-tax profit and operating margins. In South America, we
are in the middle of launching a new global product lineup.
In Europe, we responded to challenging economic conditions
by beginning a transformation plan to aggressively
accelerate our new product rollouts, strengthen our brand
and restructure our manufacturing operations. In Asia Pacific
Africa, we are undertaking an unprecedented investment
program to grow our business in what is now the world’s
largest automotive market.
The success of our One Ford plan to date gives us
confidence that it will continue to create profitable growth
for us in the future. We remain laser focused on the key
aspects of our plan, which remain unchanged:
• Aggressively restructure to operate profitably at the current
demand and changing model mix.
• Accelerate development of new products our customers
want and value.
• Finance our plan and improve our balance sheet.
• Work together effectively as one team, leveraging our
global assets.
By following this plan, we will continue to build great
products, a strong business and a better world.
Great Products
The great products that we build at Ford drive our success.
We launched 25 vehicles and 31 powertrains globally in
2012, a testament to our ongoing commitment to product
development. We also announced plans to revitalize our
Lincoln brand as the Lincoln Motor Company, which will
introduce an exciting new lineup of great luxury vehicles.
Our plan is centered on serving customers in all markets
around the world with a full family of vehicles – small, medium
and large; cars, utilities and trucks – that offer the very best
quality, fuel efficiency, safety, smart design and value.
The best way to measure the success of our products is sales,
and 2012 was a strong year. We sold 2.3 million vehicles in
the United States in 2012. Ford is the only brand to top the
2 million mark in the United States since 2007, and it has
topped 2 million for 2 years in a row. In Asia Pacific Africa, we
sold more than 1 million vehicles for the first time, including
record sales in China.
Our strong global performance was led by Focus, which was
the best-selling nameplate in the world in 2012, and Fiesta,
which was the best-selling B-Car in the world based on the
latest global data. Ford also was the only brand to have three
vehicles among the top 10 best-sellers worldwide, with the
F-Series truck coming in as the fourth best-selling global
nameplate.
Leveraging key new technologies across multiple regions
and on global platforms helps drive tremendous scale
and efficiency savings that can be reinvested, enabling
us to have one of the freshest showrooms in the industry.
Our outstanding product lineup, which we are continually
transforming and improving, is the foundation on which we
have built our strong business.
For more information visit www.annualreport.ford.com

4 Ford Motor Company | 2012 Annual Report
Ford’s Senior
Management Team
The senior management team
continues to successfully advance
the company’s One Ford global
plan. Pictured with the Ford
Escape, all-new Transit Connect
and Fiesta ST from left to right:
Bob Shanks, Jim Farley,
Ray Day, Tony Brown, Nick Smither,
Felicia Fields, David Schoch,
Stephen Odell, Mark Fields,
Alan Mulally, Bernard Silverstone,
Joe Hinrichs, Ziad Ojakli,
Robert Brown, David Leitch,
Bennie Fowler, Raj Nair and
John Fleming.
Strong Business
Our 2012 full year pre-tax operating profit, excluding special items, was
$8 billion, or $1.41 per share. We delivered record results of $8.3 billion in
North America, continued solid performance from Ford Credit of $1.7 billion,
positive results in South America, continued investment in Asia Pacific Africa
and began a challenging transition in Europe.
We remain committed to strengthening our balance sheet. We ended 2012 with
Automotive gross cash of $24.3 billion, exceeding debt by $10 billion. We also have
a strong liquidity position of $34.5 billion, an increase of $2.1 billion over 2011.
We also worked to de-risk our pension obligations, contributing $3.4 billion in cash
contributions to our worldwide funded plans.
With an eye to the future, we continued our largest and fastest manufacturing
expansion in more than 50 years, adding capacity to support growth plans in
North America and Asia Pacific Africa.
In 2012, we added more than 8,100 hourly and salaried jobs in the U.S. as we
increased production capacity and expanded other areas to meet the growing
demand for our fuel-efficient, high-tech vehicles.
In Europe, we are moving quickly to carry out our transformation plan. As we did in
North America, we are making tough choices and intelligent investments now to
transform our European business for profitable growth in the future.
Additionally, we further strengthened and developed our leadership team by
announcing the appointment of our chief operating officer, a new chief financial
officer, a new Global Product Development leader and senior leadership changes
for the Americas, Europe, Asia Pacific, Ford Credit and our Lincoln Brand.

Ford Motor Company | 2012 Annual Report 5
Better World
Even as we strive to improve our products and enhance our
business, we recognize that doing our part to contribute to
a better world is at the core of our business. In addition to
economic goals, we also pursue environmental and social
objectives.
Ford is going further than our competitors by offering an
industry-best seven Ford-brand vehicles in the U.S. that
deliver 40 or more miles per gallon.
We reached this milestone by developing the best
conventional and alternative powertrains. In 2012, we
produced our 500,000th fuel-saving EcoBoost engine just
three years after its launch. We also introduced six new
electrified vehicles, including hybrids, plug-in hybrids and
a pure battery electric vehicle.
We are giving customers the power of choice among a range
of powertrains that generate fewer emissions and consume
less gasoline.
Serving in our communities is another important part of
building a better world. In 2012, 25,000 Ford employees
and retirees volunteered more than 115,000 hours at 1,350
projects to help people in their local communities. As part
of that effort, our seventh annual Global Week of Caring
featured 12,000 employees, retirees and dealers working
on more than 300 community projects on six continents.
ONE FORD:
ONE Ford expands on the company’s four-point business plan
for achieving success globally. It encourages focus, teamwork
and a single global approach, aligning employee efforts toward
a common definition of success and optimizing their collective
strengths worldwide. The elements of ONE Ford are:
ONE TEAM:
ONE Ford emphasizes the importance of working together as
one team to achieve automotive leadership, which is measured
by the satisfaction of our customers, employees and essential
business partners, such as our dealers, investors, suppliers,
unions/councils and communities.
ONE PLAN:
• Aggressively restructure to operate profitably at the current
demand and changing model mix.
• Accelerate development of new products our customers want
and value.
• Finance our plan and improve our balance sheet.
• Work together effectively as one team.
ONE GOAL:
The goal of ONE Ford is to create an exciting and viable
company delivering profitable growth for all.
For more information visit www.annualreport.ford.com

6 Ford Motor Company | 2012 Annual Report
Going Further
In the coming year, we expect global growth to
continue, despite ongoing challenges in the external
environment. We anticipate global economic growth
in the 2 to 3 percent range, and global industry sales
of 80 million to 85 million units.
In North America, we expect our strong performance
to continue, and we anticipate higher pre-tax profits
than 2012, due to our strong Ford brand and products,
the growing industry, a lean cost structure and our
continued success in matching production with
demand.
Conditions in South America will be uneven, with
some countries experiencing growth while others face
increasing economic and political risks. We expect
results in the region to be about breakeven in 2013, as
the benefits of new global products will be tempered
by the competitive environment and currency risks
across the region that are expected to affect our
profits adversely.
Asia Pacific Africa also is expected to be about
breakeven in 2013, as growing volume and revenue
are offset by continued strong investment across the
region. This investment will pay off as we look even
further forward, and our goal is to have a full third of
our global sales in Asia Pacific Africa by 2020.
In Europe, we are working to deliver our European
transformation plan, but we expect weak economic
conditions in several markets to extend into 2013 and
industry volume to be lower in 2013 than 2012. As a
result, we expect to incur another substantial loss in
Europe in 2013. We believe that 2013 is likely the trough
for European industry sales volume, and we expect
industry sales volume and our results to begin to
improve in 2014.
Overall, we expect 2013 will be another strong year for
the Ford Motor Company with pre-tax operating profit
about equal to 2012, Automotive operating-related
cash flow to be higher than 2012, and pre-tax profit for
Ford Credit to be about the same as 2012.
Our proven One Ford plan put us on the path to
profitable growth, and we are confident it will keep us
on that path going forward.
As always, we thank you for your support of our efforts.
Alan R. Mulally
President and Chief Executive Officer
March 14, 2013
Nine hundred Ford employees formed a human Ford logo outside Ford World Headquarters to celebrate the return of the “Blue Oval”
and other assets that had been used as collateral to secure Ford’s revolving credit facility. The celebration took place on May 22, 2012
after Fitch and Moody’s Investor Service restored Ford’s credit rating to investment grade.

Ford Motor Company | 2012 Annual Report 7
Executive Officer Group
William Clay Ford, Jr.
Executive Chairman and
Chairman of the Board
Alan R. Mulally
President and Chief Executive Officer
Mark Fields
Chief Operating Officer
James D. Farley, Jr.
Executive Vice President, Global
Marketing, Sales and Service and Lincoln
John Fleming
Executive Vice President, Global
Manufacturing and Labor Affairs
Joseph R. Hinrichs
Executive Vice President and
President, The Americas
Stephen T. Odell
Executive Vice President and
President, Europe, Middle East and Africa
Robert L. Shanks
Executive Vice President and
Chief Financial Officer
Thomas K. Brown
Group Vice President, Global Purchasing
Raymond F. Day
Group Vice President, Communications
Felicia J. Fields
Group Vice President, Human Resources
and Corporate Services
Bennie W. Fowler
Group Vice President,
Quality and New Model Launch
David G. Leitch
Group Vice President and
General Counsel
J Mays
Group Vice President and
Chief Creative Officer, Design
Raj Nair
Group Vice President,
Global Product Development
Stuart J. Rowley
Vice President and Controller
Ziad S. Ojakli
Group Vice President,
Government and Community Relations
David L. Schoch
Group Vice President and
President, Asia Pacific
Bernard B. Silverstone
Group Vice President,
Chairman and Chief Executive Officer,
Ford Motor Credit Company
Nicholas J. Smither
Group Vice President and
Chief Information Officer
Board of Directors
Stephen G. Butler (1,5)
Kimberly A. Casiano (1,3,5)
Anthony F. Earley, Jr. (2,3,5)
Edsel B. Ford II (3,4)
William Clay Ford, Jr. (3,4)
Richard A. Gephardt (3,5)
James H. Hance, Jr. (1,4,5)
William W. Helman IV (3,4,5)
Irvine O. Hockaday, Jr. (1,5)
Jon M. Huntsman, Jr. (2,3,5)
Richard A. Manoogian (2,5)
Ellen R. Marram (2,3,5)
Alan R. Mulally (4)
Homer A. Neal (3,4,5)
Gerald L. Shaheen (1,5)
John L. Thornton (2,4,5)
William Clay Ford
(Director Emeritus)
Committee Membership
( 1 ) Audit
(2) Compensation
(3) Sustainability
(4) Finance
(5) Nominating and Governance
Other Vice Presidents
Joseph Bakaj
Powertrain Engineering
Stephen E. Biegun
International Governmental Affairs
Marin A. Burela
President, Changan Ford Automobile
Corporation, Ltd.
Robert D. Brown
Sustainability, Environment and
Safety Engineering
Kenneth M. Czubay
U.S. Marketing, Sales and Service
Roelant de Waard
Marketing, Sales and Service,
Ford of Europe
Elena A. Ford
Global Dealer and Consumer Experience
Kumar A. Galhotra
Product Development, Asia Pacific
and Africa
Gary A. Johnson
Manufacturing, Asia Pacific and Africa
John T. Lawler
Chairman and Chief Executive Officer,
Ford Motor China
Paul A. Mascarenas
Chief Technical Officer, Research and
Advanced Engineering
Martin J. Mulloy
Labor Affairs
Barb J. Samardzich
Product Development, Ford of Europe
Neil M. Schloss
Treasurer
James P. Tetreault
North America Manufacturing
Hau Thai-Tang
Engineering
Frederiek Toney
President, Global Ford Customer
Service Division
Jeffery C. Wood
Manufacturing, Ford of Europe
Board of Directors and Executives*
*As of March 14, 2013
For more information visit www.annualreport.ford.com

8 Ford Motor Company | 2012 Annual Report
Corporate Headquarters
Ford Motor Company
One American Road
Dearborn, MI 48126
(313) 322-3000
Shareholder Account Assistance
Computershare Trust Company, our transfer agent, maintains
the records for our registered stockholders and can help you
with a variety of stockholder-related services. Computershare
offers the DirectSERVICE Investment and Stock Purchase
Program. This shareholder-paid program provides an
alternative to traditional retail brokerage methods of
purchasing, holding and selling Ford Common Stock. You can
contact Computershare through the following methods:
Ford Motor Company
c/o Computershare Trust Company, N.A.
P.O. Box 43087
Providence, RI 02940-3087
Telephone: (800) 279-1237 (U.S. and Canada)
(781) 575-2732 (International)
E-mail: fordteam@computershare.com
Website: www.computershare.com
Stock Exchanges
Ford Common Stock is listed and traded on the New York
Stock Exchange in the United States and on stock exchanges
in Belgium and France.
The NYSE trading symbol is:
F Common Stock
Investor Information
Investor information including this report, quarterly financial
results, press releases and various other reports are available
online at www.shareholder.ford.com.
Alternatively, individual investors may contact us at:
Ford Motor Company
Shareholder Relations
One American Road
Dearborn, MI 48126
Telephone: (800) 555-5259 (U.S. and Canada)
(313) 845-8540 (International)
Fax: (313) 845-6073
E-mail: stockinf@ford.com
Security analysts and institutional investors may contact:
Ford Motor Company
Investor Relations
One American Road
Dearborn, MI 48126
Telephone: (313) 390-4563
Fax: (313) 845-6073
E-mail: fordir@ford.com
Annual Meeting
The 2013 Annual Meeting of Shareholders will be held
in Wilmington, Delaware on May 9, 2013. A notice of the
meeting and instructions for voting will be mailed to
shareholders in advance.
Shareholder Information

Ford Motor Company | 2012 Annual Report 9For more information visit www.annualreport.ford.com
10 Management’s Discussion and Analysis of Financial Condition and Results of Operations
58 Quantitative and Qualitative Disclosures About Market Risk
63 Report of Independent Registered Public Accounting Firm
64 Consolidated Income Statement
65 Sector Income Statement
66 Consolidated Balance Sheet
67 Sector Balance Sheet
68 Condensed Consolidated Statement of Cash Flows
69 Condensed Sector Statement of Cash Flows
70 Consolidated Statement of Equity
7 1 Notes to the Financial Statements
156 Selected Financial Data
1 5 7 Employment Data
158 Management’s Report on Internal Control Over Financial Reporting
159 New York Stock Exchange Required Disclosures
Financial Content*
* Financial information contained herein (pages 10-159) is excerpted from the Annual Report on Form 10-K for the year ended December 31, 2012 of
Ford Motor Company (referred to herein as “Ford”, the “Company”, “we”, “our” or “us”), which is available on our website at www.shareholder.ford.com.

10 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
10
OVERVIEW
Revenue
Our Automotive sector’s revenue is generated primarily by sales of vehicles, parts, and accessories; we generally
treat sales and marketing incentives as a reduction to revenue. Revenue is recorded when all risks and rewards of
ownership are transferred to our customers (generally, our dealers and distributors). For the majority of sales, this
occurs when products are shipped from our manufacturing facilities. This is not the case, however, with respect to
vehicles produced for sale to daily rental car companies that are subject to a guaranteed repurchase option. These
vehicles are accounted for as operating leases, with lease revenue and profits recognized over the term of the lease.
When we sell the returned vehicle at auction, we recognize a gain or loss on the difference, if any, between actual
auction value and the projected auction value. In addition, revenue for finished vehicles we sell to customers or vehicle
modifiers on consignment is not recognized until the vehicle is sold to the ultimate customer.
Most of the vehicles sold by us to our dealers and distributors are financed at wholesale by Ford Credit. Upon
Ford Credit originating the wholesale receivable related to a dealer’s purchase of a vehicle, Ford Credit pays cash to
the relevant legal entity in our Automotive sector in payment of the dealer’s obligation for the purchase price of the
vehicle. The dealer then pays the wholesale finance receivable to Ford Credit when it sells the vehicle to a retail
customer.
Our Financial Services sector’s revenue is generated primarily from interest on finance receivables, net of certain
deferred origination costs that are included as a reduction of financing revenue, and such revenue is recognized over
the term of the receivable using the interest method. Also, revenue from operating leases, net of certain deferred
origination costs, is recognized on a straight-line basis over the term of the lease. Income is generated to the extent
revenues exceed expenses, most of which are interest, depreciation, and operating expenses.
Transactions between our Automotive and Financial Services sectors occur in the ordinary course of business. For
example, we offer special retail financing and lease incentives to dealers’ customers who choose to finance or lease
our vehicles from Ford Credit. The estimated cost for these incentives is recorded as revenue reduction to Automotive
sales at the later of the date the related vehicle sales to our dealers are recorded or the date the incentive program is
both approved and communicated. In order to compensate Ford Credit for the lower interest or lease rates offered to
the retail customer, we pay the discounted value of the incentive directly to Ford Credit when it originates the retail
finance or lease contract with the dealer’s customer. Ford Credit recognizes the amount over the life of the related
contracts as an element of financing revenue. See Note 1 of the Notes to the Financial Statements for a more detailed
discussion of transactions and payments between our Automotive and Financial Services sectors.
Costs and Expenses
Our income statement classifies our Automotive total costs and expenses into two categories: (i) cost of sales, and
(ii) selling, administrative, and other expenses. We include within cost of sales those costs related to the development,
manufacture, and distribution of our vehicles, parts, and accessories. Specifically, we include in cost of sales each of
the following: material costs (including commodity costs); freight costs; warranty, including product recall and customer
satisfaction program costs; labor and other costs related to the development and manufacture of our products;
depreciation and amortization; and other associated costs. We include within selling, administrative, and other
expenses labor and other costs not directly related to the development and manufacture of our products, including
such expenses as advertising and sales promotion costs.
Certain of our costs, such as material costs, generally vary directly with changes in volume and mix of production.
In our industry, production volume often varies significantly from quarter to quarter and year to year. Quarterly
production volumes experience seasonal shifts throughout the year (including peak retail sales seasons, and the
impact on production of model changeover and new product launches). As we have seen in recent years, annual
production volumes are heavily impacted by external economic factors, including the pace of economic growth and
factors such as the availability of consumer credit and cost of fuel.

Ford Motor Company | 2012 Annual Report 11
Management’s Discussion and Analysis of Financial Condition and Results of Operations
11
As a result, we analyze the profit impact of certain cost changes holding constant present-year volume and mix
and currency exchange, in order to evaluate our cost trends absent the impact of varying production and currency
exchange levels. We analyze these cost changes in the following categories:
• Material excluding commodity costs – primarily reflecting the change in cost of purchased parts used in the
assembly of our vehicles.
• Commodity costs – reflecting the change in cost for raw materials (such as steel, aluminum, and resins) used in
the manufacture of our products.
• Structural costs – reflecting the change in costs that generally do not have a directly proportionate relationship
to our production volumes, such as labor costs, including pension and health care; other costs related to the
development and manufacture of our vehicles; depreciation and amortization; and advertising and sales
promotion costs.
• Warranty and other costs – reflecting the change in cost related to warranty coverage, including product recalls
and customer satisfaction actions, as well as the change in freight and other costs related to the distribution of
our vehicles and support for the sale and distribution of parts and accessories.
While material (including commodity), freight, and warranty costs generally vary directly in proportion to production
volume, elements within our structural costs category are impacted to differing degrees by changes in production
volume. We also have varying degrees of discretion when it comes to controlling the different elements within our
structural costs. For example, depreciation and amortization expense largely is associated with prior capital spending
decisions. On the other hand, while labor costs do not vary directly with production volume, manufacturing labor costs
may be impacted by changes in volume, for example when we increase overtime, add a production shift or add
personnel to support volume increases. Other structural costs, such as advertising or engineering costs, do not
necessarily have a directly proportionate relationship to production volume. Our structural costs generally are within
our discretion, although to varying degrees, and can be adjusted over time in response to external factors.
We consider certain structural costs to be a direct investment in future growth and revenue. For example,
increases in structural costs are necessary to grow our business and improve profitability as we expand around the
world, invest in new products and technologies, respond to increasing industry sales volume, and grow our market
share.
Automotive total costs and expenses for full-year 2012 was $121.6 billion. Material costs (including commodity
costs) make up the largest portion of our Automotive total costs and expenses, representing in 2012 about two-thirds of
the total amount. Of the remaining balance of our Automotive costs and expenses, the largest piece is structural costs.
Although material costs are our largest absolute cost, our margins can be affected significantly by changes in any
category of costs.
Key Economic Factors and Trends Affecting the Automotive Industry
Global Economic Conditions. During 2011, global economic growth slowed to about 2.5% from 4% in 2010, as the
worsening debt crisis in Europe, regime changes in North Africa, natural disasters in Japan and Thailand, and
moderating economic growth in several key newly-developed and emerging markets all contributed to slow growth.
Global growth in 2012 remained at the relatively low level of about 2.5% due to the European debt crisis, slowing of
Chinese economic growth, and moderate pace of recovery in the United States. During 2013, global economic growth
is expected to remain in the 2% – 3% range. The European debt crisis remains a key risk to economic growth. The
current economic performance in many European countries, particularly Greece, Ireland, Italy, Portugal and Spain, is
being hampered by excessive government debt levels and the resulting budget austerity measures that are
contributing to weak economic growth. The EU, the European Central Bank, and the International Monetary Fund
have provided important support for many of these countries undergoing structural changes. During 2013, economic
growth is likely to remain weak in these markets, even though financial markets have begun to stabilize. The U.K.
government has implemented budget cuts and tax increases that will depress growth, although the labor market has
stabilized in recent months.

Uncertainties associated with the European debt crisis, and policy responses to it, could impact global economic
performance in 2013. Although housing is stabilizing in some of the worst hit markets, such as the United States, the
prospect of a strong economic rebound is hampered by fiscal tightening.
For more information visit www.annualreport.ford.com

12 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
12
Global industry vehicle sales volume (including medium and heavy truck) is estimated to have increased to
81 million units in 2012, up more than 4 million units – or about 5% – from 2011 levels. In 2013, in light of the volatile
external environment, global industry sales are projected to be in a range of 80 million – 85 million units.
Excess Capacity. According to IHS Automotive, an automotive research firm, the estimated automotive industry
global production capacity for light vehicles (which as of 2011 includes an expanded truck segment compared with
previous years) of about 108 million units exceeded global production by about 26 million units in 2012. In North
America and Europe, the two regions where the majority of industry revenue and profits are earned, excess capacity
as a percent of production in 2012 was an estimated 11% and 37%, respectively. According to production capacity
data projected by IHS Automotive, global excess capacity conditions could continue for several years at an average of
about 31 million units per year during the period from 2013 to 2017.

Pricing Pressure. Excess capacity, coupled with a proliferation of new products being introduced in key segments,
will keep pressure on manufacturers’ ability to increase prices. In North America, the industry restructuring of the past
few years has allowed manufacturers to better match production with demand, although Japanese and Korean
manufacturers also have capacity (located outside of the region) directed to North America. In the future, Chinese and
Indian manufacturers are expected to enter U.S. and European markets, further intensifying competition. Although
there has been some firming of pricing in the U.S. market, particularly in 2011, it seems likely that over the long term
intense competition and apparent excess capacity will continue to put downward pressure on inflation-adjusted prices
for similarly-contented vehicles in the United States and contribute to a challenging pricing environment for the
automotive industry. In Europe, the excess capacity situation was exacerbated by weakening demand and the lack of
reductions in existing capacity, such that negative pricing pressure is expected to continue for the foreseeable future.

Commodity and Energy Price Increases. Despite weak demand conditions, light sweet crude oil prices increased
from an average of $80 per barrel in 2010 to $95 per barrel in 2011, before declining slightly to about $87 per barrel in
late 2012. Commodity prices have declined recently, but over the longer term prices are likely to trend higher given
global demand growth.

Vehicle Profitability. Our financial results depend on the profitability of the vehicles we sell, which may vary
significantly by vehicle line. In general, larger vehicles tend to command higher prices and be more profitable than
smaller vehicles, both across and within vehicle segments. For example, in North America, our larger, more profitable
vehicles had an average contribution margin that was about 130% of our total average contribution margin across all
vehicles, whereas our smaller vehicles had significantly lower contribution margins. As we execute our One Ford plan,
we are working to create best-in-class vehicles on global platforms that contribute higher margins, and offering a more
balanced portfolio of vehicles with which we aim to be among the leaders in fuel efficiency in every segment in which
we compete.
Increasing Sales of Smaller Vehicles. Like other manufacturers, we are increasing our participation in newly-
developed and emerging markets, such as Brazil, Russia, India, and China, in which vehicle sales are expected to
increase at a faster rate than in most mature markets. The largest segments in these markets are small vehicles
(i.e., Sub-B, B, and C segments). To increase our participation in these fast-growing markets, we are significantly
increasing our production capacity, directly or through joint ventures. In addition, we expect that increased demand for
smaller, more fuel-efficient vehicles will continue in the mature markets of North America and Europe and,
consequently, we have seen and expect in the future strong demand in those markets for our small car offerings
(including our new Ford Fiesta and Focus models that are based on global platforms). Although we expect positive
contribution margins from higher small vehicle sales, one result of increased production of small vehicles may be that,
over time, our average per unit margin decreases because small vehicles tend to have lower margins than medium
and large vehicles.

Currency Exchange Rate Volatility. The European debt crisis has contributed to recent financial market volatility.
Coupled with the ongoing policy actions taken by central banks to support the financial system, exchange rates have
remained volatile. Most recently, the euro currency value has fluctuated as progress toward a solution to the sovereign
debt crisis remains highly uncertain; the yen has depreciated significantly as a result of policy changes by the
Japanese government and Bank of Japan. The high inflation in newly-developed and emerging markets and capital
flight to perceived stable investments have started to erode the strength of some local currencies. In most markets,
exchange rates are market-determined, and all are impacted by many different macroeconomic and policy factors, and
thus likely to remain volatile. In some other markets, exchange rates are heavily influenced or controlled by
governments.

Ford Motor Company | 2012 Annual Report 13
Management’s Discussion and Analysis of Financial Condition and Results of Operations
13
Trade Policy. To the extent governments in various regions erect or intensify barriers to imports, or implement
currency policy that advantages local exporters selling into the global marketplace, there can be a significant negative
impact on manufacturers based in markets that promote free trade. While we believe the long-term trend is toward the
growth of free trade, we have noted with concern recent developments in a number of regions. In Asia Pacific Africa,
for example, the recent dramatic depreciation of the yen significantly reduces the cost of exports into the United States,
Europe, and other global markets by Japanese manufacturers. Over a period of time, the emerging weakness of the
yen can contribute to other countries pursuing weak currency policies by intervening in the exchange rate markets.
This is particularly likely in other Asian countries, such as South Korea. As another example, government actions in
South America to incentivize local production and balance trade are driving trade frictions between South American
countries and also with Mexico, resulting in business environment instability and new trade barriers. We will continue
to monitor and address developing issues around trade policy.
Other Economic Factors. The eventual implications of higher government deficits and debt, with potentially higher
long-term interest rates, could drive a higher cost of capital over our planning period. Higher interest rates and/or taxes
to address the higher deficits also may impede real growth in gross domestic product and, therefore, vehicle sales over
our planning period.
Trends and Strategies
We remain firm in our belief that our continued focus on executing the four key priorities of our One Ford plan
enables us to go further for our customers, dealers, suppliers, employees, shareholders, and other key constituencies:
• Aggressively restructure to operate profitably at the current demand and changing model mix;
• Accelerate development of new products our customers want and value;
• Finance our plan and improve our balance sheet; and
• Work together effectively as one team, leveraging our global assets.
Despite the external economic environment in recent years, we have made significant progress in transforming our
business.
Aggressively Restructure to Operate Profitably
Brands. In recent years, we have eliminated a number of brands from our portfolio in order to devote fully our
financial, product development, production, and marketing and sales and services resources toward further growing
our core Ford and Lincoln brands. We sold Aston Martin, Jaguar, Land Rover, and Volvo, and we discontinued the
Mercury brand and further reduced our stake in Mazda. In 2012, we announced the revitalization of Lincoln reflecting
the brand’s distinct product strategy, including its own dedicated design studio, separate creative agency in New York,
and financial services team to complement the vehicle acquisition and ownership experience.
Manufacturing. We are committed to maintaining an appropriate manufacturing footprint in markets around the
world, both in the more mature markets in which we have an established presence, and in fast-growing newly-
developed and emerging markets. We are making substantial investments in newly-developed and emerging
markets, including in China, India, and Thailand to increase our production capacity with flexible new manufacturing
plants. We and our unconsolidated affiliates in Asia Pacific Africa launched two new plants in 2012, and have
announced that we expect to complete seven more plants in the region by mid-decade. We also are making
substantial investments in North America to grow production as industry sales rebound, including the addition of
400,000 annual incremental units of production capacity during 2012 and significant hiring in the United States as part
of our manufacturing capacity expansions.
In October 2012, we also announced our plan to transform our European operations in response to structural
industry overcapacity in the region. Our plan targets all areas of the business, including product, brand, and cost. We
have detailed an aggressive product acceleration in Europe, including plans to introduce 15 global vehicles within five
years; we are taking steps to further strengthen our brand, and to enhance brand awareness in fast-growing emerging
markets within the region; and we are moving to ensure a more efficient manufacturing footprint. As announced, we
intend to close three European manufacturing facilities, which would affect approximately 6,200 positions. Our intent to
close our assembly plant in Genk, Belgium is subject to an information and consultation process with employee
representatives, which we have commenced. See “Outlook” for additional discussion of our European transformation
plan.
For more information visit www.annualreport.ford.com

14 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
14
Suppliers. We continue to work to strengthen our global supply base. As part of this process, we have been
reducing the global number of production suppliers from 3,300 in 2004 to about 1,260 at year-end 2012. We have
identified plans that will take us to a target of about 750 suppliers, and we are confident that our consolidation efforts
will result in a stronger and healthier supply base. We continue to work closely with our suppliers to address any near-
term capacity constraints as we continue to ramp up production. In addition, our move to global vehicle platforms
increases our ability to source to common suppliers for the total global volume of vehicle components resulting in a
smaller number of suppliers receiving a greater volume of purchases to support our global vehicle platforms and
allowing us to gain greater economies of scale.
Ford and Lincoln Dealerships. Our dealers are a source of strength in North America and around the world,
representing the face of Ford to local communities. Our goal is to achieve a sustainable and profitable dealer network
by rightsizing the number of dealerships, identifying the right locations, and ensuring the appropriate branded facilities
to satisfy current and future demand. We are adding dealerships rapidly in markets in our Asia Pacific Africa region
where industry volume is growing at a rapid pace. Our network includes about 460 dealerships in China, and about
170 dealerships in India. We have plans to continue our expansion of these networks, in addition to the dealership
networks in our growth markets of Brazil and Russia. We have completed planned dealer consolidations in the United
States to rightsize the number of Ford and Lincoln outlets, particularly in our largest 130 metropolitan markets. As part
of these efforts, we have reduced the number of outlets in our U.S. Ford and Lincoln network from about 4,400 at the
end of 2005 to about 3,290 at the end of 2012. This has contributed to increased profitability of our U.S. dealers as
they have grown their businesses by investing in their facilities, employees, and communities while continuously
striving to improve the experience of retail customers.
Product Development. Our One Ford global product development system is fully operationalized, utilizing global
platforms to deliver customer-focused programs rapidly and efficiently across global markets. Through our “hub and
satellite” approach, one lead product development engineering center – the hub – is assigned for each global vehicle
line, thereby ensuring global scale and efficiency through common designs, parts, suppliers, and manufacturing
processes. The hubs are supported by regional engineering centers – satellites – which also help deliver products
tuned to local market customer preferences while maintaining global design DNA. Typical delivery metrics for global
programs include 80% part commonality, 75% pre-sourcing to global suppliers, and 100% common manufacturing and
assembly process.
The global Ford lineup is now one of the most extensive in the industry and includes a full spectrum of offerings
from innovative small cars (B-platform products) such as the B-MAX sold in Europe to large commercial trucks sold
around the world. The strength of our One Ford plan has enabled a focus on delivering the industry’s best refresh rate,
sustained and funded by efficiencies and delivered by a world-class global network of engineering centers. We agree
with external analysts that a sustained fresh showroom is a good indicator of long-term market share growth.
We are making swift progress on our commitment to platform consolidation. In 2007, we utilized 27 different
vehicle platforms. By 2014, we will have 14 total platforms, and we are on track to meet our target of nine core
platforms globally. By 2013, more than 87% of our global volume will be produced across just nine core platforms.
One of these platforms, our global C-platform, which underpins a number of unique vehicles including the best-selling
Focus, will produce more platform volume than any other automaker – evidence small cars are a clear global priority.
Our new B-sized Fiesta and C-sized Focus are now among the best-selling nameplates in the world. Over the past
few years, we have been reinventing our global portfolio of vehicles – small, medium, large, cars, utilities and trucks –
and have a mid-decade target of selling approximately 8 million vehicles around the world.
In 2013, we also are focused on strategic opportunities around commercial vehicles. The global commercial
vehicle industry represented approximately 17 million units in 2012, and is forecasted to grow by 4.8 million units – or
28% – through 2017. Ford has been the best-selling brand of commercial vehicles in North America for 28 years. In
Europe, Transit vans are the best-selling medium commercial brand. We plan to leverage these strengths through a
common global family of commercial vehicles across all applicable markets.
Our full spectrum of van products now carries the Transit badge umbrella and spans three platforms, including the
B-sized Transit Courier; C-sized Transit Connect; full-size, one-ton front-wheel-drive Transit Custom; and full-size, two-
ton rear-wheel-drive Transit – providing right-sized Built Ford Tough products for all customer applications and markets.
Our new lineup of full-size Transit commercial vans will offer the largest available selection of configurations and
engine types to global customers (and provide an initial average scale of more than 475,000 units annually). In
Europe, the Transit Custom, which launched in 2012, won the 2013 International Van of the Year award.

Ford Motor Company | 2012 Annual Report 15
Management’s Discussion and Analysis of Financial Condition and Results of Operations
15
We also will supplement our commercial van line with personal-use variants, including the Tourneo wagon
offerings, delivering premium look and feel to discerning customers and additional premium revenue.
Further proof of our commitment to truck leadership is our 36 years as America’s top truck producer. In 2012, our
F-Series outsold its nearest competitors by a wide margin. At the 2013 North American International Auto Show, we
provided a glimpse of our strategy to protect and expand our truck leadership by showing the Ford Atlas Concept –
which won Autoweek Magazine’s Most Significant vehicle award. The bold emotive styling, innovative features, and
fuel economy leadership intentions are more than a hint of the designs to come.
Our market strength in trucks is due to great products and strong customer relationships – Ford trucks are clear
leaders in commercial subcategories, including mining, construction, oil and energy, small business, etc. Our future
market expectations are further bolstered by global economic recovery indicators.
Additionally, Ford Motor Company is firmly committed to the transformation and success of the Lincoln brand. The
2013 Lincoln MKZ is our first transformational product – with four all-new Lincolns in total launching within the next four
years. Each will deliver:
• A uniquely Lincoln experience, inside and out – built on our core platforms, leveraging global scale and
efficiencies
• Design excellence that is stunning and understated, with premium amenities offered on every nameplate
• Product excellence that is enabled by class-leading technologies
• The full spectrum of customer services that discerning luxury customers expect and appreciate
Lincoln is focusing on the largest and fastest-growing segments of the luxury market, with the intention of having
all-new entries competing in 90% of the premium industry by 2015.
The global premium industry is projected to grow 39% by 2017. China will play a key role in that period. By 2017,
the United States and China will represent 50% of the global premium opportunity – exactly why Lincoln recently
announced plans to enter China, the single largest car market in the world.
Accelerate Development of New Products Our Customers Want and Value
Our global product strategy is to serve our key geographic markets with a complete family of small, medium and
large, cars, utilities and trucks that have best-in-class design and quality, are environmentally responsible, and contain
high-value feature content. The result of this strategy is a full line of vehicles that:
• Have bold, emotive exterior design
• Are great to drive
• Are great to sit in (with the comfort and convenience of a second home on wheels and exceptional quietness)
• Provide fuel economy as a reason to buy
• Are unmistakably a Ford or Lincoln in look, sound and feel
• Provide exceptional value and quality
Developing products customers want and value for Ford and Lincoln demands consistent focus on our
commitment to lead in four key areas – Quality, Green, Safe and Smart.

Quality. We have made significant strides in recent years to achieve world-class levels of quality and desirability.
This has been accomplished by following an established global set of disciplined, standardized processes that are
aimed at making us a leader in automotive quality. Via our common global management team, we are leveraging our
assets by eliminating duplication, implementing best practices and utilizing a systematic approach to quality.
Overall, we expect quality to improve in 2013, including improvement in North America, where we are making
progress addressing specific customer concerns. We already have made steady and significant progress in South
America, Europe, and Asia Pacific Africa.
In fact, using the key quality measure of “things gone wrong” (“TGW”) per 1,000 vehicles at three months in service,
as measured by Global Quality Research System, a Ford-sponsored competitive research survey, we had our best
performance of the last five years in 2012 in South America, Europe, and Asia Pacific Africa, and we expect to build on
this solid accomplishment in 2013.
For more information visit www.annualreport.ford.com

16 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
16
Green. Our commitment and approach to sustainability is unique in the industry. We prefer to provide our
customers the power of choice. All Ford front-wheel drive and all-wheel drive global platforms are engineered to
accept a full technology range of gasoline, diesel, hybrid, plug-in hybrid or electric vehicle propulsion systems. That
concept, coupled with our commitment to standardized flexible production facilities, provides Ford the advantage of
producing vehicles to meet unique customer preferences or changes across markets real-time as they occur. More
importantly, our commitment to provide fuel economy leadership with every all-new or significantly refreshed product is
unwavering.
The new C-platform is a good example. The 2013 Focus SFE, with 2.0-liter gasoline engine technology, is among
the fuel economy leaders in the United States, delivering an EPA-rated 40 mpg on the highway. In Europe, the same
Focus with a 1.6-liter diesel enjoys fuel economy/CO2 leadership in the most competitive diesel market in the world.
The same Focus is also available in North America as a full battery-electric vehicle with leadership in charge rate and
range. Focus Electric has been certified by EPA to offer 110 MPGe in the city. Additionally, the 2013 C-MAX Hybrid
and C-MAX Energi plug-in hybrid sold in North America are built on the same C-platform and deliver leadership against
competitive vehicles. Lastly, our first global C-size sports car, Focus ST, delivers more than 250 horsepower from an
advanced 2.0-liter EcoBoost® engine; Focus ST offers driving excitement and leadership in fuel economy against its
competitors. All of these vehicles, from Focus Electric and C-MAX Energi to the high-performance Focus ST, are built
for North America at the same plant – Michigan Assembly Plant – running on the same line resulting in lower overall
costs.
South America and Asia Pacific regions are rapidly evolving to embrace fuel economy and low-emissions
technologies as well. Therefore, Ford is accelerating migration of world-class EcoBoost, hybrid and next-generation
diesels to those markets at the same time we are leveraging global platforms and top hats. That translates into global-
scale cost and investment efficiencies as well as ongoing affordable freshening and technology cadence across all
markets.
Safe. We are strengthening our safety leadership by focusing on three key areas – addressing driver behavior,
enhancing crash protection even further, and pioneering the next frontier of safety with driver-assist crash-avoidance
technologies.
For example, we introduced MyKey® to help parents encourage teenagers to drive more safely and fuel efficiently,
and to increase safety belt usage. MyKey – which debuted on the 2010 Focus and Taurus, and is now standard on
most Ford and Lincoln models – allows owners to program a key that can limit the vehicle’s top speed and audio
volume as well as mute the audio if front seat occupants are not buckled up. For 2013, the SYNC “Do Not Disturb”
feature was added to MyKey. We also are the leader in another dimension of driver behavior – enabling drivers to
more safely operate vehicles during recent years in which we have seen a sharp growth in the number of personal
electronic devices (e.g., cell phones, MP3 players, etc.). Our SYNC system provides hands-free connectivity, with
more than 5 million SYNC-equipped vehicles on the road, and our just-launched second generation of SYNC has
added a “Do Not Disturb” feature that allows users to redirect incoming messages and calls directly to their cellular
mailbox. We expect to have 14 million SYNC-equipped vehicles on the road by 2015 as we launch SYNC globally.
We have led the industry in migrating driver assist technologies from premium segments to family segments. We
also offer a new advanced crash-avoidance technology – collision warning with brake support – on several Ford and
Lincoln vehicles including Ford Taurus, Fusion, Edge and Explorer, and Lincoln MKS, MKX, MKZ and MKT. This
feature uses radar to monitor traffic directly ahead, and warns the driver with an authoritative beep and a red warning
light projected on the windshield if a collision threat is detected. We also launched the industry’s first-ever production
use of inflatable seat belts, designed to provide additional protection for rear-seat occupants – often children and older
passengers who can be more vulnerable to head, chest, and neck injuries. This technology is now incorporated into
the 2013 Ford Flex and Explorer, and Lincoln MKT and MKZ, and we plan to expand further offerings to other vehicles
globally.
Other global driver-assist features such as Blind Spot Information System (BLIS®), active park assist and adaptive
cruise control have enjoyed strong customer demand and expanded vehicle applications. We also have begun offering
the next suite of new safety features and driver-assistance technologies – we introduced Lane-Keeping Aid and Driver
Alert on the 2013 Ford Explorer and Fusion and Lincoln MKS, MKZ and MKT in North America and the Ford Mondeo
and Focus in Europe.

Ford Motor Company | 2012 Annual Report 17
Management’s Discussion and Analysis of Financial Condition and Results of Operations
17
The independent car safety organization, Euro NCAP, named the Focus Europe’s best-in-class small family car,
while Focus also became the industry’s first vehicle to earn four Euro NCAP Advanced Technology Awards, being
recognized for Active City Stop, Lane-Keeping Aid, Driver Alert, and Forward Alert. Features such as Speed Limiter,
Torque Vectoring Control, Traffic Sign Recognition System, All-Seat BeltMinder® and Power Child Locks also have
been introduced in Europe on Focus, C-MAX, Grand C-MAX, Mondeo, S-MAX and Galaxy.
Smart. We recently completed our seventh consecutive year participating in the International Consumer
Electronics Show (“CES”), which many media say is becoming more important than ever to automakers. At the 2013
show, Ford Chief Technical Officer Paul Mascarenas and Vice President of Engineering Hau Thai-Tang introduced the
Ford Developer Program, the automotive industry’s first smartphone app software development program. The program
allows for those outside the company with innovative ideas to work with Ford to create compelling and valuable new
features and services for our customers at an unprecedented rate. Using SYNC AppLink™, drivers are able to connect
their smartphones and control their favorite mobile apps simply using their voice.
We continue to work on the future of the connected car, having introduced the Ford Evos Concept to North
America for the first time at the 2012 CES. The Evos Concept showcases a dramatic four-door, four-seat fastback
concept with a state-of-the-art lithium-ion plug-in hybrid powertrain that previews our vision for customer-focused,
intuitive technologies. Driver engagement technologies explore a seamless enhancement of the driving experience
and smart electrified powertrain. Technologies use online data to check for potential travel routes and to set the most
efficient braking, steering and suspension settings with efficient and enjoyable powertrain settings, and to reserve a
charging parking spot at the driver’s destination. We also built on our power of choice fuel-efficient powertrain
momentum by showcasing and offering drives of the Fiesta with EcoBoost 1.0-liter three-cylinder engine, Fusion
Hybrid and C-MAX Energi plug-in hybrid – which was named Official Car of CES at the 2013 show.
Building upon our demonstrated strategy to globally democratize our technology, Fusion and Explorer launched
with a full suite of driver-assist technologies, each leading their respective segments. With features including Lane-
Keeping Aid, adaptive cruise control and active park assist, both vehicles help drivers with a new level of convenience.
Lane-Keeping uses a forward-facing camera to monitor the lane markings ahead and warn drivers if they are drifting
outside, and will even nudge the car back into the correct lane if the driver does not immediately respond. Adaptive
cruise control features radar that tracks the vehicles ahead of you and keeps pace and maintains a safe distance,
adjusting as necessary to the speed of traffic. Active park assist helps drivers minimize the stress associated with
parallel parking. Using sonar, the car can identify an appropriate parallel parking spot and then assist the driver by
automatically steering the car into the spot while the driver maintains control of the throttle and brakes. Additionally,
the new Lincoln MKZ introduces Active Noise Control (“ANC”), which helps manage the sounds passengers hear
inside the car. Using elements of the audio system, ANC technology will block out unwanted engine and road noise,
helping improve the overall in-car experience.
We also are celebrating the first anniversary of the new Ford Silicon Valley Lab, which opened in 2012 in
downtown Palo Alto, California. Our lab employees are working closely with local universities including Stanford, new
startup companies, and leading innovators such as Facebook, Microsoft, and Google.
Leveraging key new technologies across multiple regions and on global platforms helps drive tremendous scale
and efficiency savings that can be reinvested, allowing us to have the freshest showroom in the industry. In 2012, we
showed growth in nearly every aspect of our business, with 25 new vehicles launched around the world. We expect to
grow even further in 2013, driven by having the freshest products in the business – the average age of our global
product lineup improves again this year compared with 2012.
Our aggressive freshening cadence and relentless focus on efficiency is producing results that are greater than our
major global full-line competitors. Our global programs continue to offer bold, emotive designs, high levels of quality,
fuel economy leadership, top safety ratings, innovative technologies, and greater feature content than higher-series
competitive offerings, which will allow us to reduce brand discounts and increase revenue across our portfolio. This
overall combination of cost efficiency and revenue enhancement that is being realized from One Ford and our global
product strategy will help us continue to profitably grow and Go Further.
For more information visit www.annualreport.ford.com

18 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
18
Finance Our Plan and Strengthen Our Balance Sheet
Execution of our One Ford plan has generated significant positive Automotive operating-related cash flow in recent
years, which has allowed us to strengthen our balance sheet while continuing to invest in new products that customers
want and value, transform and grow our business, pay our debts and obligations as and when they come due, pay a
sustainable dividend, and provide protection within an uncertain global economic environment. We expect to generate
significant positive Automotive operating-related cash flow again in 2013.
Work Together Effectively as One Team
As part of the One Team approach, we have implemented a disciplined business plan process to regularly review
our business environment, risks and opportunities, strategy, and plan, and to identify areas of our plan that need
special attention while pursuing opportunities to improve our plan. Everyone is included and contributes, openness is
encouraged, our leaders are responsible and accountable, we use facts and data to make our decisions, high
performance teamwork is a performance criteria – and we follow this process every week, every month, and every
quarter, driving continuous improvement. We believe this process gives us a clear picture of our business in real time
and the ability to respond quickly and decisively to new issues and changing conditions – as we have done in the face
of rapid changes in the market and business environment in the last few years. As needed, we convene daily
management meetings to handle potentially acute situations, which allows us to ensure that we are vigorously
managing daily developments and moving decisively in response to changing conditions.
In addition, we are partnering with and enlisting all of our stakeholders to help us execute our plan to deal with our
business realities and create an exciting and viable business going forward. We are reaching out and listening to
customers, dealers, employees, labor unions, suppliers, investors, communities, retirees, and federal, state, and local
governments. Each of these constituencies is a critical part of the success of our business going forward. Realizing
our goal of profitable growth for all is as important to these stakeholders as it is to our shareholders.
RESULTS OF OPERATIONS

TOTAL COMPANY
As shown in the table below, full year net income in 2012 was lower than a year ago, primarily reflecting the non-
repeat of the 2011 release of the tax valuation allowance against deferred tax assets.
2012 2011 2010
(Mils.) (Mils.) (Mils.)
Income
Pre-tax results (excl. special items) $ 7,966 $ 8,763 $ 8,300
Special items (246) (82) (1,151)
Pre-tax results (incl. special items) 7,720 8,681 7,149
(Provision for)/Benefit from income taxes (2,056) 11,541 (592)
Net income 5,664 20,222 6,557
Less: Income/(Loss) attributable to noncontrolling interests (1) 9 (4)
Net income attributable to Ford $ 5,665 $ 20,213 $ 6,561
Income before income taxes includes certain items (“special items”) that we have grouped into “Personnel and
Dealer-Related Items” and “Other Items” to provide useful information to investors about the nature of the special items.
The first category includes items related to our efforts to match production capacity and cost structure to market demand
and changing model mix and therefore helps investors track amounts related to those activities. The second category
includes items that we do not generally consider to be indicative of our ongoing operating activities, and therefore allows
investors analyzing our pre-tax results to identify certain infrequent significant items that they may wish to exclude when
considering the trend of ongoing operating results.
As detailed in Note 28 of the Notes to the Financial Statements, we allocate special items to a separate reconciling
item, as opposed to allocating them among the operating segments and Other Automotive, reflecting the fact that
management excludes these items from its review of operating segment results for purposes of measuring segment
profitability and allocating resources among the segments.

Ford Motor Company | 2012 Annual Report 19
Management’s Discussion and Analysis of Financial Condition and Results of Operations
19
The following table details Automotive sector special items in each category:
2012 2011 2010
(Mils.) (Mils.) (Mils.)
Personnel and Dealer-Related Items
Personnel-reduction actions (a) $ (498) $ (269) $ (145)
Mercury discontinuation/Other dealer actions (71) (151) (339)
Job Security Benefits/Other 17 93 36
Total Personnel and Dealer-Related Items (552) (327) (448)
Other Items
CFMA restructuring 625 — —
AAI consolidation (b) 136 — —
FordSollers gain 1 401 —
U.S. pension lump-sum program (250) — —
Loss on sale of two component businesses (174) — —
Belgium pension settlement — (109) —
Debt reduction actions — (60) (853)
Sale of Volvo and related charges — 8 179
Other (32) 5 (29)
Total Other Items 306 245 (703)
Total Special Items $ (246) $ (82) $ (1,151)
__________
(a) Includes pension-related special items other than the U.S. pension lump-sum program.
(b) The special item of $136 million is comprised of the $155 million gain from the consolidation of AAI (see Note 25 of the Notes to the Financial
Statements), less a related $19 million adjustment for sales in September 2012 of Ford-brand vehicles produced by AAI.
Discussion of Automotive sector, Financial Services sector, and total Company results of operations below is on a pre-
tax basis and excludes special items unless otherwise specifically noted.
The chart below details 2012 pre-tax results by sector:
Total Company 2012 pre-tax profit of $8 billion reflects strong results from both sectors. Compared with 2011, total
Company pre-tax profit declined, primarily explained by the expected reduction in Financial Services.
For more information visit www.annualreport.ford.com

20 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
20
AUTOMOTIVE SECTOR
In general, we measure year-over-year change in Automotive pre-tax operating profit for our total Automotive sector
and reportable segments using the causal factors listed below, with revenue and cost variances calculated at present-year
volume and mix and exchange:
• Market Factors:
Volume and Mix – Primarily measures profit variance from changes in wholesale volumes (at prior-year average
margin per unit) driven by changes in industry volume, market share, and dealer stocks, as well as the profit
variance resulting from changes in product mix, including mix among vehicle lines and mix of trim levels and
options within a vehicle line
Net Pricing – Primarily measures profit variance driven by changes in wholesale prices to dealers and marketing
incentive programs such as rebate programs, low-rate financing offers, and special lease offers
• Contribution Costs – Primarily measures profit variance driven by per-unit changes in cost categories that typically
vary with volume, such as material costs (including commodity and component costs), warranty expense, and freight
and duty costs
• Other Costs – Primarily measures profit variance driven by absolute change in cost categories that typically do not
have a directly proportionate relationship to production volume. These include mainly structural costs, described
below, as well as all other costs, which include items such as litigation costs and costs related to our after-market
parts, accessories, and service business. Structural costs include the following cost categories:
Manufacturing and Engineering – consists primarily of costs for hourly and salaried manufacturing- and
engineering-related personnel, plant overhead (such as utilities and taxes), new product launch expense,
prototype materials, and outside engineering services
Spending-Related – consists primarily of depreciation and amortization of our manufacturing and engineering
assets, but also includes asset retirements and operating leases
Advertising and Sales Promotions – includes costs for advertising, marketing programs, brand promotions,
customer mailings and promotional events, and auto shows
Administrative and Selling – includes primarily costs for salaried personnel and purchased services related to our
staff activities and selling functions, as well as associated information technology costs
Pension and OPEB – consists primarily of past service pension cost and other postretirement employee benefit
costs
• Exchange – Primarily measures profit variance driven by one or more of the following: (i) impact of gains or losses
arising from transactions denominated in currencies other than the functional currency of the locations, including
currency transactions, (ii) effect of remeasuring income, assets, and liabilities of foreign subsidiaries using U.S. dollars
as the functional currency, or (iii) results of our foreign currency hedging activities
• Net Interest and Other – Primarily measures profit variance driven by changes in our Automotive sector’s centrally-
managed net interest (primarily interest expense, interest income, and other adjustments) and related fair value
market adjustments in our investment portfolio and marketable securities as well as other items not included in the
causal factors defined above

Ford Motor Company | 2012 Annual Report 21
Management’s Discussion and Analysis of Financial Condition and Results of Operations
21
2012 Compared with 2011
Total Automotive. The charts below detail key metrics and the change in 2012 pre-tax results compared with 2011 by
causal factor. Automotive operating margin is defined as Automotive pre-tax results, excluding special items and Other
Automotive, divided by Automotive revenue.
As shown above, all four key metrics were about equal for 2012 compared with 2011, with pre-tax profit primarily
reflecting higher net pricing and lower compensation costs (primarily the non-repeat of 2011 UAW ratification bonuses),
offset by higher costs, mainly structural, and unfavorable volume and mix.
For more information visit www.annualreport.ford.com

22 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
22
Total costs and expenses for our Automotive sector for 2012 and 2011 was $121.6 billion and $122.4 billion,
respectively, a difference of about $800 million. An explanation of the changes, as reconciled to our income statement, is
shown below (in billions):
2012
Better/(Worse)
2011
Explanation of change:
Volume and mix, exchange, and other $ 3.0
Contribution costs (a)
Commodity costs (incl. hedging) —
Material costs excluding commodity costs (0.9)
Warranty/Freight 0.8
Other costs (a)
Structural costs (1.5)
Other (0.2)
Special items (0.4)
Total $ 0.8
_________
(a) Our key cost change elements are measured primarily at present-year exchange; in addition, costs that vary directly with volume, such as material,
freight and warranty costs, are measured at present-year volume and mix. Excludes special items.
Results by Automotive Segment. Details by segment of Income before income taxes are shown below for 2012.
Total Automotive pre-tax profit in 2012 was more than explained by profit from Ford North America. Ford South
America was profitable and Ford Asia Pacific Africa incurred a small loss, while Ford Europe reported a substantial loss.
The loss in Other Automotive was more than explained by net interest expense.
For 2013, we expect net interest expense to be higher than our fourth quarter 2012 run rate of $147 million, reflecting
the increase in Automotive debt associated with our January 2013 issuance (discussed under “Liquidity and Capital
Resources – Automotive Sector”) and lower interest income.

Ford Motor Company | 2012 Annual Report 23
Management’s Discussion and Analysis of Financial Condition and Results of Operations
23
Ford North America Segment. The charts below detail key metrics, and the change in 2012 pre-tax results compared
with 2011 by causal factor.
As shown above, all four key metrics increased for 2012 compared with 2011. The increase in pre-tax profit for 2012
compared with 2011 primarily reflected favorable market factors, lower contribution costs, and lower compensation costs
(primarily the non-repeat of 2011 UAW ratification bonuses), offset partially by higher structural cost.
For the year, total U.S. market share was down 1.3 percentage points, while U.S. retail share of retail industry
declined 0.7 of a percentage point. The declines largely reflected the discontinuation of the Crown Victoria and Ranger,
capacity constraints, and reduced availability associated with our Fusion and Escape model changeovers.
For 2013, we expect the strong Ford North America performance to continue with higher pre-tax profits than 2012 and
an operating margin of about 10%. This reflects a growing industry, a strong Ford brand, an outstanding product line-up
driven by industry-leading refresh rates, continued discipline in matching our production with demand, and a lean cost
structure.
For more information visit www.annualreport.ford.com

24 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
24
Ford South America Segment. The charts below detail key metrics, and the change in 2012 pre-tax results compared
with 2011 by causal factor.
As shown above, all four key metrics decreased for 2012 compared with 2011. The decrease in pre-tax profit for 2012
compared with 2011 primarily reflects higher costs and unfavorable exchange, primarily in Brazil, offset partially by higher
net pricing.
For 2013, we expect Ford South America results to be about breakeven. Although results will benefit from new
products recently launched or to be launched during the year, the competitive environment and currency risks across the
region, especially in Venezuela, are expected to impact our profits adversely. In addition, government actions to
incentivize local production and balance trade are driving trade frictions between South American countries and also with
Mexico, resulting in business environment instability and new trade barriers.

Ford Motor Company | 2012 Annual Report 25
Management’s Discussion and Analysis of Financial Condition and Results of Operations
25
Ford Europe Segment. The charts below detail key metrics, and the change in 2012 pre-tax results compared with 2011
by causal factor.
All four key metrics declined for 2012 compared with 2011. The decline in wholesales and revenue primarily reflected lower
industry sales and market share, and reductions in dealer stocks. Exchange was also a contributing factor adversely affecting
net revenue. The decline in 2012 pre-tax results compared with 2011 primarily reflected unfavorable market factors.
Our 2012 results are consistent with our guidance from October 2012, when we announced our European transformation
plan. In 2013, compared with 2012, we expect to benefit from the non-repeat of dealer stock reductions to the degree incurred
in 2012. However, consistent with our guidance, we will incur higher costs associated with restructuring actions, mainly
investment in new products, as well as accelerated depreciation and costs to implement our revised manufacturing footprint.
Similar to our successful restructuring of North America, these are the investments we are making to enable the transformation
of our European business for profitable growth in the future.
While our restructuring-related investments this year are consistent with our October 2012 guidance, our outlook for industry
volume in 2013 has deteriorated – now expected to be at the lower end of the range of 13 million to 14 million units. In addition,
we are being affected adversely by higher pension costs due to lower discount rates and a stronger euro. As a result, we now
expect a loss of about $2 billion for 2013, compared with prior guidance of a loss about equal to 2012. The business
environment in Europe remains uncertain. As is our practice, we will continue to monitor the situation and will take further action
as necessary to ensure we remain on track to deliver our plan.
For more information visit www.annualreport.ford.com

26 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
26
Ford Asia Pacific Africa Segment. The charts below detail key metrics, and the change in 2012 pre-tax results
compared with 2011 by causal factor.
As shown above, all four key metrics improved for 2012 compared with 2011. The improvement in 2012 pre-tax
results compared with 2011 is more than explained by higher net pricing, favorable volume and mix, and favorable
exchange, offset partially by higher costs associated with new products and investments to support higher volumes and
future growth.
Our market share in the region increased sequentially each quarter during 2012, with fourth quarter 2012 market
share at 3.4%, as we continued to benefit from increased capacity and new products. Further demonstrating the growth
we are experiencing in Asia Pacific Africa, since 2009, wholesale volume has about doubled, market share has improved
by half a point and net revenue has increased by about two-thirds even though our reported revenue does not include the
revenue of unconsolidated joint ventures in China.
For 2013, we expect Asia Pacific Africa to be about breakeven. We expect our volume and revenue growth in the
region to accelerate, supported by the launch of the all-new Kuga, EcoSport, and refreshed Fiesta across the region, as
well as the launch of Mondeo and Explorer in China. This will be offset in large part by continued strong investment
across the region to support our longer-range growth plans.

Ford Motor Company | 2012 Annual Report 27
Management’s Discussion and Analysis of Financial Condition and Results of Operations
27
2011 Compared with 2010
Total Automotive. The charts below detail full-year key metrics and the change in full-year 2011 pre-tax operating
results compared with full-year 2010 by causal factor. Automotive operating margin is defined as Automotive pre-tax
operating results, excluding special items and Other Automotive, divided by Automotive revenue.
As shown above, full-year wholesale volume and revenue were higher than the year-ago period, but operating margin
was down seven-tenths of a point; higher commodity costs reduced our margin by 1.8 points.
Total Automotive pre-tax operating profit in 2011 was $6.3 billion, an increase of $1 billion from 2010. The increase in
earnings is explained by strong performance in market factors, and lower interest expense net of interest income (due
primarily to lower debt levels). This was offset partially by higher contribution costs, higher structural costs (including the
effect of higher volumes, new product launches, and investments to support our future product, capacity, and brand-
building plans), higher compensation costs in North America, and unfavorable exchange.

For more information visit www.annualreport.ford.com

28 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
28
Total costs and expenses for our Automotive sector for 2011 and 2010 was $122.4 billion and $113.5 billion,
respectively, a difference of $8.9 billion. An explanation of the change as reconciled to our income statement is shown
below (in billions):
2011
Better/(Worse)
2010
Explanation of change:
Volume and mix, exchange, and other $ (11.4)
Contribution costs (a)
Commodity costs (incl. hedging) (2.3)
Material costs excluding commodity costs (1.2)
Warranty/Freight (0.7)
Other costs (a)
Structural costs (1.4)
Other 0.1
Special items (b) 8.0
Total $ (8.9)
_________
(a) Our key cost change elements are measured primarily at present-year exchange; in addition, costs that vary directly with volume, such as material,
freight and warranty costs, are measured at present-year volume and mix. Excludes special items.
(b) Special items primarily reflect the non-recurrence of Volvo costs and expenses in 2011.
Results by Automotive Segment. Details by segment of Income before income taxes are shown below for 2011.
Total Automotive pre-tax operating profit of $6.3 billion was led by a $6.2 billion profit from Ford North America. Ford
South America earned a solid profit, while Ford Europe was about breakeven, incurring a small loss driven by the
economic uncertainty in the region. Ford Asia Pacific Africa incurred a loss as well, more than explained by the impact of
the Japan and Thailand natural disasters. The loss in Other Automotive was $601 million, reflecting higher interest
expense net of interest income and unfavorable fair market valuation adjustments, mainly for our investment in Mazda.

Ford Motor Company | 2012 Annual Report 29
Management’s Discussion and Analysis of Financial Condition and Results of Operations
29
Ford North America Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit
compared with 2010 by causal factor.
As shown above, full-year wholesale volume and revenue improved in 2011 compared with the prior year. Operating
margin declined one-tenth of a percentage point; this includes an adverse impact of 2 points due to higher commodity
costs.
Ford North America reported a pre-tax operating profit of $6.2 billion, compared with a profit of $5.4 billion a year ago.
Higher net pricing reflects the strength of our brand and products, a disciplined approach to incentive spending, and our
ongoing practice to match production to customer demand. Favorable volume and mix was more than explained by
higher U.S. industry and dealer stocks. These were offset partially by unfavorable contribution costs reflecting higher
commodity costs, higher material costs excluding commodities, and higher warranty and freight costs. Other costs reflect
unfavorable structural costs.

For more information visit www.annualreport.ford.com

30 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
30
Ford South America Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit
compared with 2010 by causal factor.
As shown above, full-year wholesales and revenue increased compared with a year ago, while operating margin
declined.
Ford South America reported a pre-tax operating profit of $861 million, compared with a profit of $1 billion a year ago.
The decline in earnings is more than explained by higher structural costs (driven primarily by local inflation), higher
contribution costs (more than explained by commodity costs), and unfavorable exchange, offset partially by favorable net
pricing and volume and mix.

Ford Motor Company | 2012 Annual Report 31
Management’s Discussion and Analysis of Financial Condition and Results of Operations
31
Ford Europe Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit compared
with 2010 by causal factor.
As shown above, full-year wholesale volume and revenue improved in 2011 compared with the prior year. Operating
margin declined in 2011, with higher commodity costs contributing a negative 1.5 points to Europe’s full-year margin.
Ford Europe reported a pre-tax operating loss of $27 million, compared with a profit of $182 million a year ago. The
decline in results is more than explained by higher commodity costs and material costs excluding commodities, as well as
unfavorable exchange. These costs were offset partially by higher net pricing and favorable volume and mix. Other
reflects our continued investment in the Craiova facility in Romania in preparation for the production volume ramp-up in
2012, as well as lower parts and accessories profits.

For more information visit www.annualreport.ford.com

32 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
32
Ford Asia Pacific Africa Segment. The charts below detail key metrics and the change in 2011 pre-tax operating profit
compared with 2010 by causal factor.
As shown above, wholesales and revenue increased compared with a year ago, while operating margin declined.
Ford Asia Pacific Africa reported a pre-tax operating loss of $92 million, compared with a profit of $189 million a year
ago. The decline in results reflects higher costs (primarily structural costs in support of Ford Asia Pacific Africa growth
plans), unfavorable volume and mix (which includes the impact of events in Japan and Thailand), and unfavorable
exchange, offset partially by higher net pricing.

Ford Motor Company | 2012 Annual Report 33
Management’s Discussion and Analysis of Financial Condition and Results of Operations
33
FINANCIAL SERVICES SECTOR
2012 Compared with 2011
As shown in the total Company discussion above, we present our Financial Services sector results in two segments,
Ford Credit and Other Financial Services. Ford Credit, in turn, has two segments, North America and International.
Ford Credit. The chart below details the change in 2012 pre-tax profit compared with 2011 by causal factor:
The decline in pre-tax profits is more than explained by fewer leases being terminated, which resulted in fewer
vehicles sold at a gain and lower financing margin, as higher yielding assets originated in prior years run off.
Results of Ford Credit’s operations and unallocated risk management for the years ended December 31 are shown
below (in millions):
Income before income taxes 2012 2011
2012
Over/(Under)
2011
North America segment $ 1,550 $ 2,159 $ (609)
International segment 249 371 (122)
Unallocated risk management (a) (102) (126) 24
Income before income taxes $ 1,697 $ 2,404 $ (707)
__________
(a) Consists of gains and losses related to market valuation adjustments to derivatives primarily related to movements in interest rates.
The full-year decrease in Ford Credit’s North America segment pre-tax earnings is more than explained by fewer
lease terminations, which resulted in fewer vehicles sold at a gain, and lower financing margin as higher yielding assets
originated in prior years run off. The full-year decrease in its International segment pre-tax results is more than explained
by the non-recurrence of 2011 foreign currency translation adjustments related to the discontinuation of financing in
Australia, lower volume, and unfavorable lease residual performance, offset partially by higher financing margin.
For more information visit www.annualreport.ford.com

34 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
34
Ford Credit’s receivables, including finance receivables and operating leases at December 31 were as follows (in
billions):
2012 2011 2010
Receivables
Finance receivables – North America segment
Consumer
Retail installment and direct financing leases $ 39.5 $ 38.4 $ 39.1
Non-Consumer
Wholesale 18.1 15.5 13.3
Dealer loan 1.4 1.1 1.1
Other 1.1 1.0 0.8
Total North America segment – finance receivables (a) 60.1 56.0 54.3
Finance receivables – International segment
Consumer
Retail installment and direct financing leases 9.0 9.1 10.6
Non-Consumer
Wholesale 7.4 8.5 8.7
Dealer loan 0.1 — —
Other 0.4 0.4 0.4
Total International segment – finance receivables (a) 16.9 18.0 19.7
Unearned interest supplements (1.5) (1.6) (1.9)
Allowance for credit losses (0.4) (0.5) (0.8)
Finance receivables, net 75.1 71.9 71.3
Net investment in operating leases (a) 14.7 11.1 10.0
Total receivables (b) $ 89.8 $ 83.0 $ 81.3
Memo:
Total managed receivables (c) $ 91.3 $ 84.6 $ 83.2
__________
(a) At December 31, 2012, 2011 and 2010, includes consumer receivables before allowance for credit losses of $29.3 billion, $36 billion, and
$35.8 billion, respectively, and non-consumer receivables before allowance for credit losses of $21.6 billion, $19.8 billion, and $18.7 billion,
respectively, that have been sold for legal purposes in securitization transactions but continue to be reported in Ford Credit’s consolidated financial
statements. In addition, at December 31, 2012, 2011, and 2010, includes net investment in operating leases before allowance for credit losses of
$6.3 billion, $6.4 billion, and $6.2 billion, respectively, that have been included in securitization transactions but continue to be reported in Ford
Credit’s financial statements. The receivables are available only for payment of the debt and other obligations issued or arising in the securitization
transactions; they are not available to pay Ford Credit’s other obligations or the claims of its other creditors. Ford Credit holds the right to the
excess cash flows not needed to pay the debt and other obligations issued or arising in each of these securitization transactions. See Note 17 of
the Notes to the Financial Statements for more information regarding securitization transactions.
(b) Includes allowance for credit losses of $408 million, $534 million, and $854 million at December 31, 2012, 2011 and 2010, respectively.
(c) Excludes unearned interest supplements related to finance receivables.
Receivables at December 31, 2012 increased from year-end 2011, primarily driven by increases in wholesale
receivables and net investment in operating leases.

Ford Motor Company | 2012 Annual Report 35
Management’s Discussion and Analysis of Financial Condition and Results of Operations
35
Credit Losses. The charts below detail (i) annual trends of charge-offs (credit losses, net of recoveries), (ii) loss-to-
receivables (“LTR”) ratios (charge-offs divided by the average amount of receivables outstanding for the period, excluding
the allowance for credit losses (also referred to as credit loss reserves) and unearned interest supplements related to
finance receivables), (iii) credit loss reserves, and (iv) Ford Credit’s credit loss reserves as a percentage of end-of-period
(“EOP”) receivables:
Ford Credit’s charge-offs are down from 2011, primarily reflecting lower repossessions in the United States and lower
losses in all international regions, offset partially by lower recoveries in the United States. The LTR ratio is about one-third
lower than in 2011, and is the lowest since Ford Credit started tracking LTRs more than thirty years ago.
Reserves and reserves as a percent of EOP receivables are both lower than a year ago reflecting the decrease in
charge-offs. The allowance for credit losses is estimated using a combination of models and management judgment, and
is based on such factors as portfolio quality, historical loss performance, and receivable levels.
In purchasing retail finance and lease contracts, Ford Credit uses a proprietary scoring system that classifies contracts
using several factors, such as credit bureau information, credit bureau scores (e.g., FICO score), and contract
characteristics. In addition to Ford Credit’s proprietary scoring system, it considers other factors, such as employment
history, financial stability, and capacity to pay. At December 31, 2012 and 2011, Ford Credit classified between 5% – 6%
of the outstanding U.S. retail finance and lease contracts in its portfolio as high risk at contract inception. For additional
discussion, see “Critical Accounting Estimates – Allowance for Credit Losses” below.
Residual Risk. Ford Credit is exposed to residual risk on operating leases and similar balloon payment products where
the customer may return the financed vehicle to Ford Credit. Residual risk is the possibility that the amount Ford Credit
obtains from returned vehicles will be less than its estimate of the expected residual value for the vehicle. Ford Credit
estimates the expected residual value by evaluating recent auction values, return volumes for its leased vehicles,
industry-wide used vehicle prices, marketing incentive plans, and vehicle quality data. For additional discussion, see
“Critical Accounting Estimates – Accumulated Depreciation on Vehicles Subject to Operating Leases” below.
North America Retail Operating Lease Experience
Ford Credit uses various statistics to monitor its residual risk:
• Placement volume measures the number of leases Ford Credit purchases in a given period;
• Termination volume measures the number of vehicles for which the lease has ended in the given period; and
• Return volume reflects the number of vehicles returned to Ford Credit by customers at lease-end.
For more information visit www.annualreport.ford.com

36 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
36
Ford Credit’s North America segment accounted for 98% of its total operating leases at December 31, 2012. The
following table shows operating lease placement, termination, and return volumes for this segment for the years ending
December 31 (in thousands, except for percentages):
2012 2011 2010
Placements 257 219 120
Terminations 126 246 408
Returns 76 144 281
Memo:
Return Rates 60% 59% 69%
In 2012, placement volumes were up 38,000 units compared with 2011, primarily reflecting higher industry sales.
Termination volumes decreased by 120,000 units compared with last year, reflecting lower placement volumes in 2009.
Return volumes decreased 68,000 units compared with last year, primarily reflecting lower terminations.
U.S. Ford and Lincoln Brand Operating Lease Experience. The following chart shows annual return volumes and
auction values at incurred vehicle mix for vehicles returned in the respective periods. In 2012, Ford Credit’s U.S. lease
originations represented about 15% of total U.S. retail sales of Ford and Lincoln brand vehicles, and the U.S. operating
lease portfolio accounted for about 89% of Ford Credit’s total investment in operating leases at December 31, 2012.
Ford Credit’s lease return volumes in 2012 were about 30% lower than 2011, reflecting primarily the lower lease
placements in 2009. Its 2012 lease return rate was 62%, up 6 percentage points compared with 2011, reflecting a higher
mix of 24 month contracts.
In 2012, Ford Credit’s auction values for vehicles subject to 36-month leases continued to increase, up $995 per unit
from 2011. The increase primarily reflects vehicles with higher content, including a higher mix of Lincolns.
Ford Credit’s worldwide net investment in operating leases was $14.7 billion at the end of 2012, up from $11.1 billion
in 2011.

Ford Motor Company | 2012 Annual Report 37
Management’s Discussion and Analysis of Financial Condition and Results of Operations
37
2011 Compared with 2010
The chart below details the change in 2011 pre-tax profit compared with 2010 by causal factor.
The decline in Ford Credit’s pre-tax profit reflects fewer leases being terminated and the related vehicles sold at a
gain, and lower credit loss reserve reductions.
LIQUIDITY AND CAPITAL RESOURCES
Automotive Sector
Our Automotive liquidity strategy includes ensuring that we have sufficient liquidity available with a high degree of
certainty throughout the business cycle by generating cash from operations and maintaining access to other sources of
funding. For a discussion of risks to our liquidity, see “Item 1A. Risk Factors,” of our Annual Report on Form 10-K for year
ended December 31, 2012, as well as Note 31 of the Notes to the Financial Statements regarding commitments and
contingencies that could impact our liquidity.
Gross Cash. Automotive gross cash includes cash and cash equivalents and marketable securities, net of any
securities-in-transit. Gross cash at December 31 was as follows (in billions):
2012 2011 2010
Cash and cash equivalents $ 6.2 $ 7.9 $ 6.3
Marketable securities 18.2 15.0 14.2
Total cash, marketable securities and loaned securities 24.4 22.9 20.5
Securities-in-transit (a) (0.1) — —
Gross cash $ 24.3 $ 22.9 $ 20.5
__________
(a) The purchase or sale of marketable securities for which the cash settlement was not made by period-end and for which there was a payable or
receivable recorded on the balance sheet at period-end.
Our cash, cash equivalents, and marketable securities are held primarily in highly liquid investments, which provide
for anticipated and unanticipated cash needs. Our cash, cash equivalents, and marketable securities primarily include
U.S. Department of Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions,
corporate investment-grade securities, commercial paper rated A-1/P-1 or higher, and debt obligations of a select group of
non-U.S. governments, non-U.S. governmental agencies, and supranational institutions. The average maturity of these
investments ranges from 90 days to up to one year, and is adjusted based on market conditions and liquidity needs. We
monitor our cash levels and average maturity on a daily basis. Within our Automotive gross cash portfolio, we currently do
not hold investments in government obligations of Greece, Ireland, Italy, Portugal, or Spain, nor did we hold any at
December 31, 2012.
In managing our business, we classify changes in Automotive gross cash into operating-related and other items
(which includes the impact of certain special items, contributions to funded pension plans, certain tax-related transactions,
Management’s Discussion and Analysis of Financial Condition and Results of Operations
37
2011 Compared with 2010
The chart below details the change in 2011 pre-tax profit compared with 2010 by causal factor.
The decline in Ford Credit’s pre-tax profit reflects fewer leases being terminated and the related vehicles sold at a
gain, and lower credit loss reserve reductions.
LIQUIDITY AND CAPITAL RESOURCES
Automotive Sector
Our Automotive liquidity strategy includes ensuring that we have sufficient liquidity available with a high degree of
certainty throughout the business cycle by generating cash from operations and maintaining access to other sources of
funding. For a discussion of risks to our liquidity, see “Item 1A. Risk Factors,” of our Annual Report on Form 10-K for year
ended December 31, 2012, as well as Note 31 of the Notes to the Financial Statements regarding commitments and
contingencies that could impact our liquidity.
Gross Cash. Automotive gross cash includes cash and cash equivalents and marketable securities, net of any
securities-in-transit. Gross cash at December 31 was as follows (in billions):
2012 2011 2010
Cash and cash equivalents $ 6.2 $ 7.9 $ 6.3
Marketable securities 18.2 15.0 14.2
Total cash, marketable securities and loaned securities 24.4 22.9 20.5
Securities-in-transit (a) (0.1) — —
Gross cash $ 24.3 $ 22.9 $ 20.5
__________
(a) The purchase or sale of marketable securities for which the cash settlement was not made by period-end and for which there was a payable or
receivable recorded on the balance sheet at period-end.
Our cash, cash equivalents, and marketable securities are held primarily in highly liquid investments, which provide
for anticipated and unanticipated cash needs. Our cash, cash equivalents, and marketable securities primarily include
U.S. Department of Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions,
corporate investment-grade securities, commercial paper rated A-1/P-1 or higher, and debt obligations of a select group of
non-U.S. governments, non-U.S. governmental agencies, and supranational institutions. The average maturity of these
investments ranges from 90 days to up to one year, and is adjusted based on market conditions and liquidity needs. We
monitor our cash levels and average maturity on a daily basis. Within our Automotive gross cash portfolio, we currently do
not hold investments in government obligations of Greece, Ireland, Italy, Portugal, or Spain, nor did we hold any at
December 31, 2012.
In managing our business, we classify changes in Automotive gross cash into operating-related and other items
(which includes the impact of certain special items, contributions to funded pension plans, certain tax-related transactions,
For more information visit www.annualreport.ford.com

38 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
38
acquisitions and divestitures, capital transactions with the Financial Services sector, dividends paid to shareholders, and
other — primarily financing-related). Our key liquidity metrics are operating-related cash flow (which best represents the
ability of our Automotive operations to generate cash), Automotive gross cash, and Automotive liquidity. Automotive gross
cash and liquidity as of the dates shown were as follows (in billions):
December 31,
2012
December 31,
2011
Gross cash $ 24.3 $ 22.9
Available credit lines
Revolving credit facility, unutilized portion 9.5 8.8
Local lines available to foreign affiliates, unutilized portion 0.7 0.7
Automotive liquidity $ 34.5 $ 32.4
We believe the cash flow analysis reflected in the table below is useful to investors because it includes in operating-
related cash flow elements that we consider to be related to our Automotive operating activities (e.g., capital spending)
and excludes cash flow elements that we do not consider to be related to the ability of our operations to generate cash.
This differs from a GAAP cash flow statement and differs from Net cash provided by/(used in) operating activities, the
most directly comparable GAAP financial measure.
Changes in Automotive gross cash are summarized below (in billions):
2012 2011 2010
Gross cash at end of period $ 24.3 $ 22.9 $ 20.5
Gross cash at beginning of period 22.9 20.5 24.9
Total change in gross cash $ 1.4 $ 2.4 $ (4.4)
Automotive income before income taxes (excluding special items) $ 6.3 $ 6.3 $ 5.3
Capital expenditures (5.5) (4.3) (3.9)
Depreciation and special tools amortization 3.7 3.6 3.8
Changes in working capital (a) (2.3) 0.3 (0.1)
Other/Timing differences (b) 1.2 (0.3) (0.7)
Total operating-related cash flows 3.4 5.6 4.4
Cash impact of personnel-reduction programs accrual (0.4) (0.3) (0.2)
Net receipts from Financial Services sector (c) 0.7 4.2 2.7
Other (d) 1.1 (0.2) (0.8)
Cash flow before other actions 4.8 9.3 6.1
Net proceeds from/(Payments on) Automotive sector debt 0.9 (6.0) (12.1)
Contributions to funded pension plans (3.4) (1.1) (1.0)
Dividends/Other (0.9) 0.2 2.6
Total change in gross cash $ 1.4 $ 2.4 $ (4.4)
_________
(a) Working capital comprised of changes in receivables, inventory, and trade payables.
(b) Primarily expense and payment timing differences for items such as pension and OPEB, compensation, marketing, and warranty, as well as
additional factors, such as the impact of tax payments.
(c) Primarily distributions and tax payments received from Ford Credit.
(d) 2012 includes cash and marketable securities resulting from the consolidation of AAI.
With respect to “Changes in working capital,” in general we carry relatively low trade receivables compared to our
trade payables because the majority of our Automotive wholesales are financed (primarily by Ford Credit) immediately
upon sale of vehicles to dealers, which generally occurs at the time the vehicles are gate-released shortly after being
produced. In addition, our inventories are lean because we build to order, not for inventory. In contrast, our Automotive
trade payables are based primarily on industry-standard production supplier payment terms generally ranging between
30 days to 45 days. As a result, our cash flow tends to improve as wholesale volumes increase, but can deteriorate
significantly when wholesale volumes drop sharply. In addition, these working capital balances generally are subject to
seasonal changes that can impact cash flow. For example, we typically experience cash flow timing differences
associated with inventories and payables due to our annual summer and December shutdown periods, when production,
and therefore inventories and wholesale volumes, are usually at their lowest levels, while payables continue to come due
and be paid. The net impact of this typically results in cash outflows from changes in our working capital balances during
these shutdown periods.

Ford Motor Company | 2012 Annual Report 39
Management’s Discussion and Analysis of Financial Condition and Results of Operations
39
Shown below is a reconciliation between financial statement Net cash provided by/(used in) operating activities and
operating-related cash flows (calculated as shown in the table above), as of the dates shown (in billions):
2012 2011 2010
Net cash provided by/(used in) by operating activities $ 6.3 $ 9.4 $ 6.4
Items included in operating-related cash flows
Capital expenditures (5.5) (4.3) (3.9)
Proceeds from the exercise of stock options — 0.1 0.3
Net cash flows from non-designated derivatives (0.8) 0.1 (0.2)
Items not included in operating-related cash flows
Cash impact of Job Security Benefits and personnel-reduction actions 0.4 0.3 0.2
Contributions to funded pension plans 3.4 1.1 1.0
Tax refunds, tax payments, and tax receipts from affiliates (0.1) (1.4) (0.2)
Settlement of outstanding obligation with affiliates (0.3) — —
Other — 0.3 0.8
Operating-related cash flows $ 3.4 $ 5.6 $ 4.4
Credit Agreement. Lenders under our Credit Agreement have commitments totaling $9.3 billion in a revolving credit
facility that will mature on November 30, 2015, and commitments totaling an additional $307 million in a revolving credit
facility that will mature on November 30, 2013. Our Credit Agreement is free of material adverse change clauses,
restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements) and credit
rating triggers that could limit our ability to obtain funding. The Credit Agreement contains a liquidity covenant that
requires us to maintain a minimum of $4 billion in the aggregate of domestic cash, cash equivalents, and loaned and
marketable securities and/or availability under the revolving credit facilities. On May 22, 2012, the collateral securing our
Credit Agreement was automatically released upon our senior, unsecured, long-term debt being upgraded to investment
grade by Fitch and Moody’s. If our senior, unsecured, long-term debt does not maintain at least two investment grade
ratings, the guarantees of certain subsidiaries will be reinstated.
At December 31, 2012, the utilized portion of the revolving credit facilities was $93 million, representing amounts
utilized as letters of credit. Less than 1% of the commitments in the revolving credit facilities are from financial institutions
that are based in Greece, Ireland, Italy, Portugal, and Spain.
U.S. Department of Energy (“DOE”) Advanced Technology Vehicle Manufacturer (“ATVM”) Incentive Program. In
September 2009, we entered into a Loan Arrangement and Reimbursement Agreement (“Arrangement Agreement”) with
the DOE, pursuant to which the DOE agreed to (i) arrange a 13-year multi-draw term loan facility (the “Facility”) under the
ATVM Program in the aggregate principal amount of up to $5.9 billion, (ii) designate us as a borrower under the ATVM
Program and (iii) cause the Federal Financing Bank to enter into a Note Purchase Agreement for the purchase of notes to
be issued by us evidencing such loans. In August 2012, the Facility was fully drawn with $5.9 billion outstanding. We
began repayment in September 2012 and at December 31, 2012, an aggregate of $5.6 billion was outstanding. The
proceeds of the ATVM loan have been used to finance certain costs for fuel-efficient, advanced-technology vehicles. The
principal amount of the ATVM loan bears interest at a blended rate based on the U.S. Treasury yield curve at the time
each draw was made (with the weighted-average interest rate on all such draws being about 2.3% per annum). The
ATVM loan is repayable in equal quarterly installments of $148 million, which began in September 2012 and will end in
June 2022.
European Investment Bank (“EIB”) Credit Facility. On July 12, 2010, Ford Motor Company Limited, our operating
subsidiary in the United Kingdom (“Ford of Britain”), entered into a credit facility for an aggregate amount of £450 million
(equivalent to $729 million at December 31, 2012) with the EIB. Proceeds of loans drawn under the facility are being
used to fund costs for the research and development of fuel-efficient engines and commercial vehicles with lower
emissions, and related upgrades to an engine manufacturing plant. The facility was fully drawn in the third quarter of
2010, and Ford of Britain had outstanding $729 million of loans at December 31, 2012. The loans are five-year, non-
amortizing loans secured by a guarantee from the U.K. government for 80% of the outstanding principal amount and cash
collateral from Ford of Britain equal to approximately 20% of the outstanding principal amount, and bear interest at a fixed
rate of 3.9% per annum excluding a commitment fee of 0.30% to the U.K. government. Ford of Britain has pledged
substantially all of its fixed assets, receivables and inventory to the U.K. government as collateral, and we have
guaranteed Ford of Britain’s obligations to the U.K. government related to the government’s guarantee.
For more information visit www.annualreport.ford.com

40 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
40
Export-Import Bank of the United States (“Ex-Im”) and Private Export Funding Corporation (“PEFCO”) Secured
Revolving Loan. At December 31, 2012, this working capital facility, which supports vehicle exports from the United
States, was fully drawn at $300 million. The facility will renew annually until June 15, 2015, provided that no payment or
bankruptcy default exists and Ex-Im continues to have a perfected security interest in the collateral, which consists of
vehicles in transit in the United States to be exported to Canada, Mexico, and other select markets.
Other Automotive Credit Facilities. At December 31, 2012, we had $901 million of local credit facilities available to
non-U.S. Automotive affiliates, of which $140 million had been utilized. Of the $901 million of committed credit facilities,
$345 million expires in 2013, $196 million expires in 2014, $318 million expires in 2015, and $42 million thereafter.
Net Cash. Our Automotive sector net cash calculation as of the dates shown was as follows (in billions):
December 31,
2012
December 31,
2011
Gross cash $ 24.3 $ 22.9
Less:
Long-term debt 12.9 12.1
Debt payable within one year 1.4 1.0
Total debt 14.3 13.1
Net cash $ 10.0 $ 9.8
Total debt at December 31, 2012 increased by about $1.2 billion from December 31, 2011, primarily reflecting the
additional drawdowns of low-cost loans for advanced technology vehicle development and our renminbi-denominated
debt issuance in Hong Kong.
Not shown in the table above is the $2 billion aggregate principal amount of 4.75% Notes due January 15, 2043 we
issued in January 2013. With this issuance we took advantage of favorable market conditions to issue low-cost, long-term
debt, the proceeds of which have been used, in part, to redeem approximately $600 million principal amount of 7.50%
Notes due June 10, 2043, with the remainder to be contributed to our funded pension plans during 2013 to support our
pension de-risking actions (discussed below). This action is consistent with our mid-decade target of Automotive debt
levels at about $10 billion.
Pension Plan Contributions and Strategy. Worldwide, our defined benefit pension plans were underfunded by
$18.7 billion at December 31, 2012, compared with being underfunded by $15.4 billion at December 31, 2011. The
deterioration is more than explained by sharply lower discount rates, with the U.S. weighted-average discount rate
declining to 3.84% at the end of 2012 from 4.64% at the end of 2011.
Our long-term strategy is to reduce the risk of our funded defined benefit pension plans, including minimizing the
volatility of the value of our pension assets relative to pension liabilities and the need for unplanned use of capital
resources to fund the plans. The strategy will reduce balance sheet, cash flow, and income exposures and, in turn, reduce
our risk profile. The key elements of this strategy include:
• Limiting liability growth in our defined benefit plans by closing participation to new participants;
• Reducing plan deficits through discretionary cash contributions;
• Progressively re-balancing assets to more fixed income investments, with a target asset allocation to be reached
over the next several years of about 80% fixed income investments and 20% growth assets, which will provide a
better matching of plan assets to the characteristics of the liabilities, thereby reducing our net exposure; and
• Taking other strategic actions to reduce pension liabilities, such as the voluntary lump sum payout program
started in 2012 for U.S. salaried retirees.
In 2012, we contributed $3.4 billion to our worldwide funded pension plans, an increase of $2.3 billion compared with
2011. During 2013, we expect to contribute from Automotive cash and cash equivalents about $5 billion to our worldwide
funded plans (including discretionary contributions of about $3.4 billion, largely to our U.S. plans) and to make
$400 million of benefit payments to participants in unfunded plans, for a total of about $5.4 billion.
The voluntary lump sum payout program we started in 2012 will continue through 2013. To date, eligible retirees have
accepted lump sum offers that have resulted in about $1.2 billion of our pension obligations being settled.

Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major
U.S. pension plans in 2013.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
40
Export-Import Bank of the United States (“Ex-Im”) and Private Export Funding Corporation (“PEFCO”) Secured
Revolving Loan. At December 31, 2012, this working capital facility, which supports vehicle exports from the United
States, was fully drawn at $300 million. The facility will renew annually until June 15, 2015, provided that no payment or
bankruptcy default exists and Ex-Im continues to have a perfected security interest in the collateral, which consists of
vehicles in transit in the United States to be exported to Canada, Mexico, and other select markets.
Other Automotive Credit Facilities. At December 31, 2012, we had $901 million of local credit facilities available to
non-U.S. Automotive affiliates, of which $140 million had been utilized. Of the $901 million of committed credit facilities,
$345 million expires in 2013, $196 million expires in 2014, $318 million expires in 2015, and $42 million thereafter.
Net Cash. Our Automotive sector net cash calculation as of the dates shown was as follows (in billions):
December 31,
2012
December 31,
2011
Gross cash $ 24.3 $ 22.9
Less:
Long-term debt 12.9 12.1
Debt payable within one year 1.4 1.0
Total debt 14.3 13.1
Net cash $ 10.0 $ 9.8
Total debt at December 31, 2012 increased by about $1.2 billion from December 31, 2011, primarily reflecting the
additional drawdowns of low-cost loans for advanced technology vehicle development and our renminbi-denominated
debt issuance in Hong Kong.
Not shown in the table above is the $2 billion aggregate principal amount of 4.75% Notes due January 15, 2043 we
issued in January 2013. With this issuance we took advantage of favorable market conditions to issue low-cost, long-term
debt, the proceeds of which have been used, in part, to redeem approximately $600 million principal amount of 7.50%
Notes due June 10, 2043, with the remainder to be contributed to our funded pension plans during 2013 to support our
pension de-risking actions (discussed below). This action is consistent with our mid-decade target of Automotive debt
levels at about $10 billion.
Pension Plan Contributions and Strategy. Worldwide, our defined benefit pension plans were underfunded by
$18.7 billion at December 31, 2012, compared with being underfunded by $15.4 billion at December 31, 2011. The
deterioration is more than explained by sharply lower discount rates, with the U.S. weighted-average discount rate
declining to 3.84% at the end of 2012 from 4.64% at the end of 2011.
Our long-term strategy is to reduce the risk of our funded defined benefit pension plans, including minimizing the
volatility of the value of our pension assets relative to pension liabilities and the need for unplanned use of capital
resources to fund the plans. The strategy will reduce balance sheet, cash flow, and income exposures and, in turn, reduce
our risk profile. The key elements of this strategy include:
• Limiting liability growth in our defined benefit plans by closing participation to new participants;
• Reducing plan deficits through discretionary cash contributions;
• Progressively re-balancing assets to more fixed income investments, with a target asset allocation to be reached
over the next several years of about 80% fixed income investments and 20% growth assets, which will provide a
better matching of plan assets to the characteristics of the liabilities, thereby reducing our net exposure; and
• Taking other strategic actions to reduce pension liabilities, such as the voluntary lump sum payout program
started in 2012 for U.S. salaried retirees.
In 2012, we contributed $3.4 billion to our worldwide funded pension plans, an increase of $2.3 billion compared with
2011. During 2013, we expect to contribute from Automotive cash and cash equivalents about $5 billion to our worldwide
funded plans (including discretionary contributions of about $3.4 billion, largely to our U.S. plans) and to make
$400 million of benefit payments to participants in unfunded plans, for a total of about $5.4 billion.
The voluntary lump sum payout program we started in 2012 will continue through 2013. To date, eligible retirees have
accepted lump sum offers that have resulted in about $1.2 billion of our pension obligations being settled.

Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major
U.S. pension plans in 2013.

Ford Motor Company | 2012 Annual Report 41
Management’s Discussion and Analysis of Financial Condition and Results of Operations
41
Based on present planning assumptions for long-term asset returns, a normalization of discount rates and planned
cash contributions, we expect our global funded pension obligations to be fully funded by mid-decade, with variability on a
plan-by-plan basis.

For a detailed discussion of our pension plans, see Note 16 of the Notes to the Financial Statements.

Liquidity Sufficiency. One of the four key priorities of our One Ford plan is to finance our plan and improve our
balance sheet, while at the same time having resources available to grow our business. The actions described above are
consistent with this priority. Based on our planning assumptions, we believe that we have sufficient liquidity and capital
resources to continue to invest in new products that customers want and value, transform and grow our business, pay our
debts and obligations as and when they come due, pay a sustainable dividend, and provide protection within an uncertain
global economic environment. We will continue to look for opportunities to strengthen our balance sheet, primarily by
working to ensure our underlying business generates positive Automotive operating-related cash flow, even as we
continue to invest in the growth of our business.
Financial Services Sector
Ford Credit
Funding Strategy. Ford Credit’s funding strategy remains focused on diversification and it plans to continue
accessing a variety of markets, channels, and investors. Ford Credit completed its full-year 2012 funding plan, issuing
over $23 billion of public term funding. Ford Credit’s public unsecured issuance was over $9 billion, including more
than $700 million issued under the Ford Credit U.S. Retail Notes program. Ford Credit also issued its first public
investment grade unsecured debt transaction since 2005. Additionally, Ford Credit launched an unsecured
commercial paper program in the United States, which has grown to about $1.7 billion.
Ford Credit’s liquidity remains strong and it ended the year with $19.7 billion of available liquidity and $31.5 billion of
committed capacity, compared with about $17 billion and $33 billion at December 31, 2011, respectively.
Ford Credit’s funding plan is subject to risks and uncertainties, many of which are beyond its control, including
disruption in the capital markets that could impact both unsecured debt and asset-backed securities issuance and the
effects of regulatory reform efforts on the financial markets. Potential impacts of industry events and regulation on
Ford Credit’s ability to access debt and derivatives markets, or renew its committed liquidity programs in sufficient
amounts and at competitive rates, represents another risk to its funding plan. As a result of such events or regulation,
Ford Credit may need to reduce new originations of receivables, thereby reducing its ongoing profits and adversely
affecting its ability to support the sale of our vehicles. Ford Credit is focused on maintaining liquidity levels that meet
its business and funding requirement through economic cycles.
Funding. Ford Credit requires substantial funding in the normal course of business. Its funding requirements are
driven mainly by the need to: (i) purchase retail installment sale contracts and retail lease contracts to support the sale
of Ford products, which are influenced by Ford-sponsored special-rate financing programs that are available
exclusively through Ford Credit, (ii) provide wholesale financing and capital financing for Ford dealers, and (iii) repay
its debt obligations.
Ford Credit’s funding sources include primarily securitization transactions (including other structured financings)
and unsecured debt. Ford Credit issues both short- and long-term debt that is held by both institutional and retail
investors, with long-term debt having an original maturity of more than 12 months. Ford Credit sponsors a number of
securitization programs that can be structured to provide both short- and long-term funding through institutional
investors in the United States and international capital markets.
Ford Credit obtains short-term unsecured funding from the sale of floating rate demand notes under its Ford Interest
Advantage program and by issuing unsecured commercial paper in the United States, Europe, Mexico, and other
international markets. At December 31, 2012, the principal amount outstanding of Ford Interest Advantage notes,
which may be redeemed at any time at the option of the holders thereof without restriction, was $4.9 billion. At
December 31, 2012, the principal amount outstanding of Ford Credit’s unsecured commercial paper was about
$1.7 billion, which primarily represents issuance under its commercial paper program in the United States. Ford Credit
does not hold reserves specifically to fund the payment of any of its unsecured short-term funding obligations. Instead,
Ford Credit maintains multiple sources of liquidity, including cash, cash equivalents, and marketable securities
(excluding marketable securities related to insurance activities), unused committed liquidity programs, excess
securitizable assets, and committed and uncommitted credit facilities, which should be sufficient to meet Ford Credit’s
unsecured short-term funding obligations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
41
Based on present planning assumptions for long-term asset returns, a normalization of discount rates and planned
cash contributions, we expect our global funded pension obligations to be fully funded by mid-decade, with variability on a
plan-by-plan basis.

For a detailed discussion of our pension plans, see Note 16 of the Notes to the Financial Statements.

Liquidity Sufficiency. One of the four key priorities of our One Ford plan is to finance our plan and improve our
balance sheet, while at the same time having resources available to grow our business. The actions described above are
consistent with this priority. Based on our planning assumptions, we believe that we have sufficient liquidity and capital
resources to continue to invest in new products that customers want and value, transform and grow our business, pay our
debts and obligations as and when they come due, pay a sustainable dividend, and provide protection within an uncertain
global economic environment. We will continue to look for opportunities to strengthen our balance sheet, primarily by
working to ensure our underlying business generates positive Automotive operating-related cash flow, even as we
continue to invest in the growth of our business.
Financial Services Sector
Ford Credit
Funding Strategy. Ford Credit’s funding strategy remains focused on diversification and it plans to continue
accessing a variety of markets, channels, and investors. Ford Credit completed its full-year 2012 funding plan, issuing
over $23 billion of public term funding. Ford Credit’s public unsecured issuance was over $9 billion, including more
than $700 million issued under the Ford Credit U.S. Retail Notes program. Ford Credit also issued its first public
investment grade unsecured debt transaction since 2005. Additionally, Ford Credit launched an unsecured
commercial paper program in the United States, which has grown to about $1.7 billion.
Ford Credit’s liquidity remains strong and it ended the year with $19.7 billion of available liquidity and $31.5 billion of
committed capacity, compared with about $17 billion and $33 billion at December 31, 2011, respectively.
Ford Credit’s funding plan is subject to risks and uncertainties, many of which are beyond its control, including
disruption in the capital markets that could impact both unsecured debt and asset-backed securities issuance and the
effects of regulatory reform efforts on the financial markets. Potential impacts of industry events and regulation on
Ford Credit’s ability to access debt and derivatives markets, or renew its committed liquidity programs in sufficient
amounts and at competitive rates, represents another risk to its funding plan. As a result of such events or regulation,
Ford Credit may need to reduce new originations of receivables, thereby reducing its ongoing profits and adversely
affecting its ability to support the sale of our vehicles. Ford Credit is focused on maintaining liquidity levels that meet
its business and funding requirement through economic cycles.
Funding. Ford Credit requires substantial funding in the normal course of business. Its funding requirements are
driven mainly by the need to: (i) purchase retail installment sale contracts and retail lease contracts to support the sale
of Ford products, which are influenced by Ford-sponsored special-rate financing programs that are available
exclusively through Ford Credit, (ii) provide wholesale financing and capital financing for Ford dealers, and (iii) repay
its debt obligations.
Ford Credit’s funding sources include primarily securitization transactions (including other structured financings)
and unsecured debt. Ford Credit issues both short- and long-term debt that is held by both institutional and retail
investors, with long-term debt having an original maturity of more than 12 months. Ford Credit sponsors a number of
securitization programs that can be structured to provide both short- and long-term funding through institutional
investors in the United States and international capital markets.
Ford Credit obtains short-term unsecured funding from the sale of floating rate demand notes under its Ford Interest
Advantage program and by issuing unsecured commercial paper in the United States, Europe, Mexico, and other
international markets. At December 31, 2012, the principal amount outstanding of Ford Interest Advantage notes,
which may be redeemed at any time at the option of the holders thereof without restriction, was $4.9 billion. At
December 31, 2012, the principal amount outstanding of Ford Credit’s unsecured commercial paper was about
$1.7 billion, which primarily represents issuance under its commercial paper program in the United States. Ford Credit
does not hold reserves specifically to fund the payment of any of its unsecured short-term funding obligations. Instead,
Ford Credit maintains multiple sources of liquidity, including cash, cash equivalents, and marketable securities
(excluding marketable securities related to insurance activities), unused committed liquidity programs, excess
securitizable assets, and committed and uncommitted credit facilities, which should be sufficient to meet Ford Credit’s
unsecured short-term funding obligations.
For more information visit www.annualreport.ford.com

42 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
42
Funding Portfolio. The chart below details the trends in the funding of Ford Credit’s managed receivables:
__________
(a) The Ford Interest Advantage program consists of Ford Credit’s floating rate demand notes.
(b) Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and
related enhancements.
(c) Excludes marketable securities related to insurance activities.
At year-end 2012, managed receivables were $91 billion and Ford Credit ended the year with about $11 billion in
cash. Securitized funding was 48% of managed receivables, down from 55% at year-end 2011. This reflects a greater
mix of unsecured debt given Ford Credit’s improved credit spreads and the mandatory exchange of $2.5 billion of
asset-backed Ford Upgrade Exchanged Linked (“FUEL”) notes for unsecured notes of Ford Credit, which was
triggered by the upgrade to investment grade of Ford Credit’s long-term, unsecured debt by two credit rating agencies
during the second quarter of 2012.
Ford Credit is projecting 2013 year-end managed receivables in the range of $95 billion to $105 billion and
securitized funding is expected to represent about 42% to 47% of total managed receivables. It is Ford Credit’s
expectation that the securitized funding as a percent of managed receivables will decline going forward.
Public Term Funding Plan. The following table illustrates Ford Credit’s planned issuances for full-year 2013, and its
public term funding issuances in 2012, 2011, and 2010 (in billions):
Public Term Funding Plan
2013
Forecast 2012 2011 2010
Unsecured $ 7-10 $ 9 $ 8 $ 6
Securitizations (a) 10-14 14 11 11
Total $ 17-24 $ 23 $ 19 $ 17
__________
(a) Includes Rule 144A offerings.
In 2012, Ford Credit completed over $23 billion of public term funding in the United States, Canada, and Europe,
including over $9 billion of unsecured debt and $14 billion of securitizations.
For 2013, Ford Credit projects full-year public term funding in the range of $17 billion to $24 billion, consisting of
$7 billion to $10 billion of unsecured debt and $10 billion to $14 billion of public securitizations. Through
February 18, 2013, Ford Credit completed about $4 billion of public term funding transactions in the United States,
Canada, and Europe, including about $2 billion of unsecured debt and $2 billion of securitizations.

Ford Motor Company | 2012 Annual Report 43
Management’s Discussion and Analysis of Financial Condition and Results of Operations
43
Liquidity. The following table illustrates Ford Credit’s liquidity programs and utilization (in billions):
December 31,
2012
December 31,
2011
December 31,
2010
Liquidity Sources (a)
Cash (b) $ 10.9 $ 12.1 $ 14.6
Unsecured credit facilities 0.9 0.7 1.1
FCAR bank lines 6.3 7.9 9.0
Conduit / Bank Asset-Backed Securitizations (“ABS”) 24.3 24 24.2
Total liquidity sources $ 42.4 $ 44.7 $ 48.9
Utilization of Liquidity
Securitization cash (c) $ (3.0) $ (3.7) $ (4.2)
Unsecured credit facilities (0.1) (0.2) (0.5)
FCAR bank lines (5.8) (6.8) (6.7)
Conduit / Bank ABS (12.3) (14.5) (8.6)
Total utilization of liquidity (21.2) (25.2) (20.0)
Gross liquidity 21.2 19.5 28.9
Capacity in excess of eligible receivables (1.5) (2.4) (6.3)
Liquidity available for use $ 19.7 $ 17.1 $ 22.6
__________
(a) FCAR and conduits subject to availability of sufficient assets and ability to obtain derivatives to manage interest rate risk; FCAR commercial
paper must be supported by bank lines equal to at least 100% of the principal amount; conduits include committed securitization programs.
(b) Cash, cash equivalents, and marketable securities (excludes marketable securities related to insurance activities).
(c) Securitization cash is to be used only to support on-balance sheet securitization transactions.
At December 31, 2012, Ford Credit had $42.4 billion of committed capacity and cash diversified across a variety of
markets and platforms. The utilization of its liquidity totaled $21.2 billion at year-end, compared with $25.2 billion at
year-end 2011. The decrease of $4 billion reflects lower usage of its private conduits, FCAR outstanding commercial
paper balance, and securitized cash.
Ford Credit ended 2012 with gross liquidity of $21.2 billion. Capacity in excess of eligible receivables decreased to
$1.5 billion. This provides a funding source for future originations and flexibility to transfer capacity among markets
and asset classes where most needed. Total liquidity available for use continues to remain strong at $19.7 billion at
year-end 2012, $2.6 billion higher than year-end 2011. Ford Credit is focused on maintaining liquidity levels that meet
its business and funding requirements through economic cycles.
Cash, Cash Equivalents, and Marketable Securities. At December 31, 2012, Ford Credit’s cash, cash equivalents,
and marketable securities (excluding marketable securities related to insurance activities) totaled $10.9 billion,
compared with $12.1 billion at year-end 2011. In the normal course of its funding activities, Ford Credit may generate
more proceeds than are required for its immediate funding needs. These excess amounts are maintained primarily as
highly liquid investments, which provide liquidity for its short-term funding needs and give it flexibility in the use of its
other funding programs. Ford Credit’s cash, cash equivalents, and marketable securities are held primarily in highly
liquid investments, which provide for anticipated and unanticipated cash needs. Ford Credit’s cash, cash equivalents,
and marketable securities (excluding marketable securities related to insurance activities) primarily include
U.S. Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions and non-
U.S. central banks, corporate investment-grade securities, A-1/P-1 (or higher) rated commercial paper, debt obligations
of a select group of non-U.S. governments, non-U.S. government agencies, supranational institutions and money
market funds that carry the highest possible ratings. Ford Credit currently does not hold cash, cash equivalents, or
marketable securities consisting of investments in government obligations of Greece, Ireland, Italy, Portugal, or Spain,
nor did it hold any at December 31, 2012. The average maturity of these investments ranges from 90 days to up to
one year, and is adjusted based on market conditions and liquidity needs. Ford Credit monitors its cash levels and
average maturity on a daily basis. Cash, cash equivalents, and marketable securities include amounts to be used only
to support Ford Credit’s securitization transactions of $3.0 billion and $3.7 billion at December 31, 2012 and 2011,
respectively.
Ford Credit’s substantial liquidity and cash balance have provided the opportunity to selectively call and repurchase
its unsecured and asset-backed debt through market transactions. For full-year 2012, Ford Credit repurchased and
called an aggregate principal amount of $628 million of its unsecured and asset-backed debt.
For more information visit www.annualreport.ford.com

44 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
44
Credit Facilities and Committed Liquidity Programs. See Note 17 of the Notes to the Financial Statements for more
information regarding credit facilities and committed liquidity programs for Ford Credit. While there is a risk of non-
renewal of some of Ford Credit’s committed liquidity programs, which could lead to a reduction in the size of these
programs and/or higher costs, Ford Credit’s capacity in excess of eligible receivables would enable it to absorb some
reductions. Ford Credit’s ability to obtain funding under these programs is subject to having a sufficient amount of
assets eligible for these programs as well as its ability to obtain interest rate hedging arrangements for certain
securitization transactions.
Balance Sheet Liquidity Profile. Ford Credit defines its balance sheet liquidity profile as the cumulative maturities,
including the impact of prepayments, of its finance receivables, investment in operating leases, and cash, less the
cumulative debt maturities over upcoming annual periods. The following chart shows its cumulative maturities for the
periods presented at December 31, 2012:
__________
(a) Includes finance receivables net of unearned income, investment in operating leases net of accumulated depreciation, cash and
cash equivalents, and marketable securities (excludes marketable securities related to insurance activities).
(b) Retail and lease ABS are treated as amortizing immediately to match the underlying assets.
(c) Includes all of the wholesale ABS term and conduit maturities of $8 billion that otherwise contractually extend to 2014 and
beyond.
Ford Credit’s balance sheet is inherently liquid because of the short-term nature of its finance receivables,
investment in operating leases, and cash. Maturities of investment in operating leases consist primarily of rental
payments attributable to depreciation over the remaining life of the lease and the expected residual value at lease
termination. Maturities of finance receivables and investment in operating leases in the chart above include expected
prepayments for Ford Credit’s retail installment sale contracts and investment in operating leases. The 2013 finance
receivables maturities in the chart above also include all of the wholesale receivables maturities that are otherwise
extending beyond 2013. The chart above also reflects the following adjustments to debt maturities to match all of the
asset-backed debt maturities with the underlying asset maturities:
• The 2013 maturities include all of the wholesale securitization transactions, even if the maturities extend
beyond 2013; and
• Retail securitization transactions under certain committed liquidity programs are assumed to amortize
immediately rather than amortizing after the expiration of the commitment period.
Leverage. Ford Credit uses leverage, or the debt-to-equity ratio, to make various business decisions, including
evaluating and establishing pricing for retail, wholesale, and lease financing, and assessing its capital structure. Ford
Credit refers to its shareholder’s interest as equity.

Ford Motor Company | 2012 Annual Report 45
Management’s Discussion and Analysis of Financial Condition and Results of Operations
45
The following table shows the calculation of Ford Credit’s financial statement leverage (in billions, except for ratios):
December 31,
2012
December 31,
2011
December 31,
2010
Total debt $ 89.3 $ 84.7 $ 82.9
Equity 9.7 8.9 10.3
Financial statement leverage (to 1) 9.2 9.5 8.0
The following table shows the calculation of Ford Credit’s managed leverage (in billions, except for ratios):
December 31,
2012
December 31,
2011
December 31,
2010
Total debt $ 89.3 $ 84.7 $ 82.9
Adjustments for cash, cash equivalents, and marketable securities (a) (10.9) (12.1) (14.6)
Adjustments for derivative accounting (b) (0.8) (0.7) (0.3)
Total adjusted debt $ 77.6 $ 71.9 $ 68.0
Equity $ 9.7 $ 8.9 $ 10.3
Adjustments for derivative accounting (b) (0.3) (0.2) (0.1)
Total adjusted equity $ 9.4 $ 8.7 $ 10.2
Managed leverage (to 1) (c) 8.3 8.3 6.7
__________
(a) Excludes marketable securities related to insurance activities.
(b) Primarily related to market valuation adjustments to derivatives due to movements in interest rates. Adjustments to debt are related to
designated fair value hedges and adjustments to equity are related to retained earnings.
(c) Equals total adjusted debt over total adjusted equity.
Ford Credit believes that managed leverage is useful to its investors because it reflects the way Ford Credit
manages its business. Ford Credit deducts cash and cash equivalents, and marketable securities (excluding
marketable securities related to insurance activities) because they generally correspond to excess debt beyond the
amount required to support its operations and amounts to support on-balance sheet securitization transactions. Ford
Credit makes derivative accounting adjustments to its assets, debt, and equity positions to reflect the impact of interest
rate instruments Ford Credit uses in connection with its term-debt issuances and securitization transactions. The
derivative accounting adjustments related to these instruments vary over the term of the underlying debt and
securitized funding obligations based on changes in market interest rates. Ford Credit generally repays its debt
obligations as they mature. As a result, Ford Credit excludes the impact of these derivative accounting adjustments on
both the numerator and denominator in order to exclude the interim effects of changes in market interest rates.
Ford Credit plans its managed leverage by considering prevailing market conditions and the risk characteristics of
its business. At December 31, 2012, Ford Credit’s managed leverage was 8.3:1, unchanged from December 31, 2011.
Ford Credit’s guidance for managed leverage in 2013 is to be within the range of 8:1 to 9:1. In 2012, Ford Credit paid
$600 million in distributions to its parent.
Total Company
Equity. At December 31, 2012, Total equity attributable to Ford Motor Company was $15.9 billion, an increase of
about $900 million compared with December 31, 2011. The increase is more than explained by favorable changes in
Retained earnings, related to full-year 2012 net income attributable to Ford Motor Company of $5.7 billion offset partially
by cash dividends declared of $573 million. The favorable changes in Retained earnings are offset partially by
unfavorable changes in Accumulated other comprehensive income/(loss) of $4.1 billion (more than explained by
unfavorable pension and OPEB adjustments) and treasury stock purchases of $126 million.
Credit Ratings. Our short-term and long-term debt is rated by four credit rating agencies designated as nationally
recognized statistical rating organizations (“NRSROs”) by the U.S. Securities and Exchange Commission:
• DBRS Limited (“DBRS”);
• Fitch, Inc. (“Fitch”);
• Moody’s Investors Service, Inc. (“Moody’s”); and
• Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (“S&P”).
For more information visit www.annualreport.ford.com

46 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
46
In several markets, locally-recognized rating agencies also rate us. A credit rating reflects an assessment by the
rating agency of the credit risk associated with a corporate entity or particular securities issued by that entity. Rating
agencies’ ratings of us are based on information provided by us and other sources. Credit ratings are not
recommendations to buy, sell, or hold securities, and are subject to revision or withdrawal at any time by the assigning
rating agency. Each rating agency may have different criteria for evaluating company risk and, therefore, ratings should
be evaluated independently for each rating agency. Lower credit ratings generally result in higher borrowing costs and
reduced access to capital markets.
There have been no ratings actions taken by these NRSROs since the filing of our Quarterly Report on Form 10-Q for
the quarter ended September 30, 2012.
The following chart summarizes certain of the credit ratings and outlook presently assigned by these four NRSROs:
NRSRO RATINGS
Ford Ford Credit

Issuer Default/
Corporate/
Issuer Rating
Long-Term
Senior
Unsecured
Outlook /
Trend
Long-Term
Senior
Unsecured
Short-Term
Unsecured
Outlook /
Trend
DBRS BBB (low) BBB (low) Stable BBB (low) R-3 Stable
Fitch BBB- BBB- Stable BBB- F3 Stable
Moody’s N/A Baa3 Stable Baa3 P-3 Stable
S&P BB+ BB+ Positive BB+ * NR Positive
__________
* S&P assigns FCE a long-term senior unsecured rating of BBB-, maintaining a one notch differential versus Ford Credit.
OUTLOOK
Our One Ford plan – to aggressively restructure to operate profitably at current demand and changing model mix,
accelerate development of new products our customers want and value, finance our plan and improve our balance sheet,
and work together effectively as one team leveraging our global assets – continues to be the guiding strategy for our
business.
The following summarizes results against planning assumptions and key metrics established at the beginning of 2012:
Full-Year 2012
Full-Year 2011 Results Plan Results
Industry Volume (million units) (a)
–United States 13.0 13.5 – 14.5 14.8
–Europe (b) 15.3 14.0 – 15.0 14.0
Operational Metrics
Compared with prior full year:
–U.S. Market Share 16.5% About Equal 15.2%
–Europe Market Share (b) 8.3% About Equal 7.9%
–Quality Mixed Improve Mixed
Financial Metrics
Compared with prior full year:
–Automotive Pre-Tax Operating Profit (c) $6.3 Billion Higher $6.3 Billion
–Ford Credit Pre-Tax Operating Profit $2.4 Billion Lower $1.7 Billion
–Total Company Pre-Tax Operating Profit (c) $8.8 Billion About Equal $8 Billion
–Automotive Structural Cost Increase (d) $1.4 Billion Less than $2 Billion $1.5 Billion
–Automotive Operating Margin (c) 5.4% Improve 5.3%
Absolute amount:
–Capital Spending $4.3 Billion $5.5 Billion – $6 Billion $5.5 Billion
__________
(a) Includes medium and heavy trucks.
(b) For the 19 markets we track.
(c) Excludes special items; Automotive operating margin equal to Automotive pre-tax results excluding Other Automotive divided by Automotive revenue.
(d) Structural cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations.

Ford Motor Company | 2012 Annual Report 47
Management’s Discussion and Analysis of Financial Condition and Results of Operations
47
Our projected vehicle production is as follows (in thousands):
First Quarter 2013 (a)

Planned Vehicle
Unit Production
Over/(Under)
First Quarter 2012
Ford North America 770 93
Ford South America 115 18
Ford Europe 405 (13)
Ford Asia Pacific Africa 275 62
Total 1,565 160
__________
(a) Includes production of Ford and JMC brand vehicles to be sold by our unconsolidated affiliates.
The year-over-year increase in first quarter planned production reflects higher volumes in all regions except Europe.
Planned production is consistent with our disciplined strategy to match production to consumer demand.
We expect 2013 global economic growth to be in the range of 2% – 3%, with global industry sales in the 80 million –
85 million unit range. We expect U.S. economic growth in the range of 2% – 2.5% for the year, with industry sales
supported by replacement demand given the higher-than-normal average age of vehicles on the road. In South America,
Brazil’s easing of fiscal and monetary policies, such as sales tax reductions and policy interest rate cuts to historic lows,
are setting the stage for renewed economic growth. On the other hand, economic and political uncertainty and risk are
increasing in Venezuela. In Europe, we expect weak economic conditions to continue into 2013, especially in countries
undergoing fiscal austerity programs. Recent policy moves are positive steps, but we do not believe they are enough to
resolve the economic crisis and restore business and consumer confidence. In Asia Pacific Africa, the latest data suggest
economic recovery is underway in China, while the economic slowdown in India seems to be bottoming out. Although
countries are at different stages of the economic cycle, better growth is expected in 2013 across the Asia Pacific Africa
region. Overall, despite challenges, we expect global economic growth to continue in 2013.
Based on the current economic environment, our planning assumptions and key metrics for 2013 include the following:
Full-Year 2012 Results 2013 Full-Year Plan
Industry Volume (million units) (a)
–United States 14.8 15.0 – 16.0
–Europe (b) 14.0 13.0 – 14.0
–China 19.0 19.5 – 21.5
Operational Metrics
Compared with prior full year:
–U.S. Market Share 15.2% Higher
–Europe Market Share (b) 7.9% About Equal
–China Market Share (c) 3.2% Higher
–Quality Mixed Improve
Financial Metrics
Compared with prior full year:
–Total Company Pre-Tax Profit (d) $8 Billion About Equal
–Automotive Operating Margin (d) 5.3% About Equal / Lower
–Automotive Operating-Related Cash Flow $3.4 Billion Higher
__________
(a) Includes medium and heavy trucks.
(b) For the 19 markets we track.
(c) Includes Ford and JMC brand vehicles sold in China by our unconsolidated affiliates.
(d) Excludes special items; Automotive operating margin equal to Automotive pre-tax results excluding Other Automotive divided by Automotive revenue.

We project industry volume for the United States and China will increase in 2013 compared with 2012, while we expect
industry volume for the 19 markets we track in Europe to weaken to the lower end of the range above in 2013 compared
with 2012. We expect share for the markets we track in Europe to be about the same in 2013 as in 2012 and we expect
our market share in the United States and China to increase, reflecting our strong products and brand, as well as an
expanded product portfolio (which also now covers more vehicle segments in markets such as China). We also expect
positive net pricing to continue in 2013, and we expect quality to improve.
For more information visit www.annualreport.ford.com

48 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
48
We expect total Company pre-tax profit in 2013 to be about equal to strong results in 2012, and Automotive operating
margin to be about equal to or lower than 2012. Projected 2013 operating margin reflects projected revenue increases,
partially offset by the impact of structural cost increases to support higher volumes, new product launches, and growth
plans, as well as more than $1 billion of non-cash structural cost increases. The non-cash structural cost increases
include higher pension expense due to historically low discount rates, cessation of favorable amortization associated with
previous benefit plan changes, and higher depreciation reflecting accelerated depreciation associated with our European
restructuring and cessation of low depreciation resulting from prior asset impairments in North America. We expect
Automotive operating-related cash flow to be higher in 2013 than 2012, notwithstanding higher planned capital spending
of about $7 billion.
Turning to the regions, we expect strong Ford North America performance to continue, with higher pre-tax profits than
2012 and operating margin of about 10% for 2013. Our forecast reflects growing industry volume, our strong Ford brand,
our outstanding product line-up driven by industry-leading refresh rates, our continued discipline in matching production
with demand, and our lean cost structure. Going forward, we will continue to work to sustain and grow our strong North
American operations.

For 2013, we expect Ford South America results to be about breakeven. Although results will benefit from new
products recently launched or to be launched during the year, the competitive environment and currency risks across the
region, especially in Venezuela, are expected to impact our profits adversely. In addition, government actions to
incentivize local production and balance trade are driving trade frictions between South American countries and also with
Mexico, resulting in business environment instability and new trade barriers that negatively impact our results. Going
forward, we will continue expanding our product portfolio with global products, and look at all areas of our business to
improve operating results.
As we have indicated, we view the challenges the automotive industry faces in Europe to be more structural than
cyclical in nature; industry sales volume for the 19 markets we track in Europe has dropped 20% in the past five years,
with only modest industry improvement expected by mid-decade. Against this backdrop, we announced in October 2012
our accelerated transformation plan for Ford Europe, which targets all areas of the business to return to profitability by
mid-decade — including new products and technologies, strengthened brand image, and improved cost efficiencies.
Our plan includes an aggressive new product rollout for the region, with 15 global vehicles launched within five years,
along with a broad array of smart technologies. We are introducing initiatives to continue strengthening the Ford brand in
the region, including strategic reduction of dealer inventories that was largely completed in 2012. Finally, we plan to close
three facilities and relocate production for a more efficient manufacturing footprint. We plan to close our vehicle assembly
plant and our tooling and stamping operations in the United Kingdom during 2013, and, subject to an information and
consultation process with employee representatives, we intend to close our vehicle assembly plant in Belgium in late
2014. Once completed, our actions would reduce Ford Europe’s installed assembly capacity (excluding Russia) by 18%
or 355,000 units, affect 13% of Ford Europe’s workforce, and result in annual gross cost savings of about $450 million –
$500 million.
We are on track to deliver our European transformation plan. In 2013, we will benefit from the non-repeat of dealer
stock reductions to the same degree incurred in 2012. As we previously guided, we will incur higher costs associated with
restructuring actions in 2013 compared with 2012, mainly reflecting investment in new products, accelerated depreciation,
and costs to implement our revised manufacturing footprint. As we did with our successful restructuring in North America,
we are making these investments now to transform our European business for profitable growth in the future.
Since providing guidance in October 2012, our outlook for industry volume in Europe has deteriorated. We now expect
industry volume to be in the lower end of the range of 13 million to 14 million units; the seasonally-adjusted annual rate of
industry sales for the markets we track in Europe for the fourth quarter of 2012 was the lowest in nearly 20 years. In
addition, we are being adversely impacted by higher pension costs due to lower discount rates, and a stronger euro. As a
result, we now expect our full-year 2013 pre-tax loss for Ford Europe to be about $2 billion, compared with prior guidance
of a loss about equal to 2012. The business environment in Europe remains uncertain, and, as is our practice, we will
continue to monitor the situation and take further action as necessary. We believe that 2013 is likely the trough for
European industry sales volume, and we expect industry sales volume and our results to begin to improve in 2014.
Our plan to return Ford Europe to profitability by mid-decade is driven by higher industry volume, higher market share
from our product and brand initiatives, growth in emerging markets, richer mix, improved contribution margin, and our
more efficient manufacturing footprint. A partial offset will be higher structural costs as we reconfigure and grow our
business in Europe. As we proceed with our restructuring, most financial effects will flow through our operating results.

Ford Motor Company | 2012 Annual Report 49
Management’s Discussion and Analysis of Financial Condition and Results of Operations
49
Employee separation costs, however, will be reflected as a special item. Longer-term, we are targeting Ford Europe to
achieve an operating margin in the range of 6% to 8%.
For Ford Asia Pacific Africa, we expect 2013 results to be about breakeven. We expect our volume and revenue
growth in the region to continue to accelerate, supported by the launch of all-new Kuga, EcoSport, and refreshed Fiesta
across the region, as well as the launch of Mondeo and Explorer in China. This will be offset in large part by continued
strong investment across the region to support our longer-range growth plans. Looking ahead, we see the results of our
One Ford plan taking hold in Asia Pacific Africa, with record volume, revenue, and market share increasing as investments
in new facilities and products gain traction.
We also are continuing the revitalization of our Lincoln brand reflecting the brand’s distinct product strategy, including
its own dedicated design studio, separate creative agency in New York, and financial services team to complement the
vehicle acquisition and ownership experience — and announced that we will be bringing the Lincoln brand to the
burgeoning Chinese market.

Turning from our Automotive to Financial Services sector, we expect Ford Credit to generate 2013 pre-tax profit about
equal to 2012, with managed receivables at year-end 2013 in the range of $95 billion to $105 billion, managed leverage
continuing in the range of 8:1 to 9:1, and planned distributions of about $200 million.
Overall, we expect 2013 to be another strong year for Ford Motor Company, as we continue to work toward our mid-
decade outlook. We have made tremendous progress in recent years by executing the fundamentals of our One Ford
plan, and there are significant benefits ahead as we leverage our global assets, and also benefit more fully from the
investments we are making today for future profitable growth. Our One Ford plan will continue to be our guide as we
address head-on the diverse challenges and opportunities for our industry and our business worldwide.
For more information visit www.annualreport.ford.com

50 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
50
Risk Factors
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations,
forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could
cause actual results to differ materially from those stated, including, without limitation:
• Decline in industry sales volume, particularly in the United States or Europe, due to financial crisis, recession,
geopolitical events, or other factors;
• Decline in Ford’s market share or failure to achieve growth;
• Lower-than-anticipated market acceptance of Ford’s new or existing products;
• Market shift away from sales of larger, more profitable vehicles beyond Ford’s current planning assumption, particularly
in the United States;
• An increase in or continued volatility of fuel prices, or reduced availability of fuel;
• Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;
• Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
• Adverse effects resulting from economic, geopolitical, or other events;
• Economic distress of suppliers that may require Ford to provide substantial financial support or take other measures to
ensure supplies of components or materials and could increase costs, affect liquidity, or cause production constraints or
disruptions;
• Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes,
natural or man-made disasters, tight credit markets or other financial distress, production constraints or difficulties, or
other factors);
• Single-source supply of components or materials;
• Labor or other constraints on Ford’s ability to maintain competitive cost structure;
• Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial
condition;
• Worse-than-assumed economic and demographic experience for postretirement benefit plans (e.g., discount rates or
investment returns);
• Restriction on use of tax attributes from tax law “ownership change;”
• The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty
costs;
• Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and/or
sales restrictions;
• Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in
products, perceived environmental impacts, or otherwise;
• A change in requirements under long-term supply arrangements committing Ford to purchase minimum or fixed
quantities of certain parts, or to pay a minimum amount to the seller (“take-or-pay” contracts);
• Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments;
• Inherent limitations of internal controls impacting financial statements and safeguarding of assets;
• Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-
party vendor or supplier;
• Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities;
• Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in
sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory requirements, or
other factors;
• Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for
leased vehicles;
• Increased competition from banks or other financial institutions seeking to increase their share of financing Ford
vehicles; and
• New or increased credit, consumer, or data protection or other regulations resulting in higher costs and/or additional
financing restrictions.
We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will
prove accurate, or that any projection will be realized. It is to be expected that there may be differences between
projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do
not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new
information, future events or otherwise.

Ford Motor Company | 2012 Annual Report 51
Management’s Discussion and Analysis of Financial Condition and Results of Operations
51
CRITICAL ACCOUNTING ESTIMATES
We consider an accounting estimate to be critical if: 1) the accounting estimate requires us to make assumptions
about matters that were highly uncertain at the time the accounting estimate was made, and 2) changes in the estimate
that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used
in the current period, would have a material impact on our financial condition or results of operations.
Management has discussed the development and selection of these critical accounting estimates with the Audit
Committee of our Board of Directors. In addition, there are other items within our financial statements that require
estimation, but are not deemed critical as defined above. Changes in estimates used in these and other items could have
a material impact on our financial statements.
Warranty and Product Recalls
Nature of Estimates Required. We accrue the estimated cost of basic warranty coverages for each vehicle at the time
of sale. We establish estimates using historical information regarding the nature, frequency, and average cost of claims
for each vehicle line by model year. Where little or no claims experience exists, we rely on historical averages. See
Note 31 of the Notes to the Financial Statements for information regarding costs for warranty actions. Separately, we also
accrue at the time of sale for potential product recalls based on historical experience. Product recalls are distinguishable
from warranty coverages in that the actions may extend beyond basic warranty coverage periods.
Assumptions and Approach Used. We reevaluate our estimate of warranty obligations on a regular basis. Experience
has shown that initial data for any given model year may be volatile; therefore, our process relies on long-term historical
averages until sufficient data are available. As actual experience becomes available, we use the data to modify the
historical averages in order to ensure that the estimate is within the range of likely outcomes. We then compare the
resulting accruals with present spending rates to ensure that the balances are adequate to meet expected future
obligations. Based on these data, we revise our estimates as necessary. Due to the uncertainty and potential volatility of
these factors, changes in our assumptions could materially affect our financial condition and results of operations.
Pensions
Nature of Estimates Required. The estimation of our pension obligations, costs, and liabilities requires that we make
use of estimates of the present value of the projected future payments to all participants, taking into consideration the
likelihood of potential future events such as demographic experience. These assumptions may have an effect on the
amount and timing of future contributions.
Assumptions and Approach Used. The assumptions used in developing the required estimates include the following
key factors:
• Discount rates. We base the discount rate assumption primarily on the results of a cash flow matching analysis,
which matches the future cash outflows for each major plan to a yield curve comprised of high-quality bonds
specific to the country of the plan. Benefit payments are discounted at the rates on the curve and a single
discount rate specific to the plan is determined.
• Expected long-term rate of return on assets. The expected long-term rate of return on assets assumption reflects
historical returns and long-run inputs from a range of advisors for capital market returns, inflation, bond yields,
and other variables, adjusted for specific aspects of our investment strategy. The assumption is based on
consideration of all inputs, with a focus on long-term trends to avoid short-term market influences. Assumptions
are not changed unless structural trends in the underlying economy are identified, our asset strategy changes, or
there are significant changes in other inputs.
• Salary growth. The salary growth assumption reflects our long-term actual experience, outlook, and assumed
inflation.
• Inflation. Our inflation assumption is based on an evaluation of external market indicators, including real gross
domestic product growth and central bank inflation targets.
• Expected contributions. The expected amount and timing of contributions is based on an assessment of
minimum requirements, and additional amounts based on cash availability and other considerations (e.g., funded
status, avoidance of regulatory premiums and levies, and tax efficiency).
• Retirement rates. Retirement rates are developed to reflect actual and projected plan experience.
• Mortality rates. Mortality rates are developed to reflect actual and projected plan experience.
For more information visit www.annualreport.ford.com

52 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
52
Plan obligations and costs are based on existing retirement plan provisions. No assumption is made regarding any
potential future changes to benefit provisions beyond those to which we are presently committed (e.g., in existing labor
contracts).
The effects of actual results differing from our assumptions and the effects of changing assumptions are included in
unamortized net gains and losses. Unamortized gains and losses are amortized over future periods and, therefore,
generally affect our recognized expense in future periods. Amounts are recognized as a component of net expense over
the expected future years of service (approximately 11 years for the major U.S. plans). In 2012, the U.S. actual return on
assets was 14.2%, which was higher than the expected long-term rate of return of 7.5%. The year-end 2012 weighted
average discount rates for the U.S. and non-U.S. plans decreased by 80 basis points and 92 basis points, respectively.
These differences resulted in unamortized losses of about $6 billion. Unamortized gains and losses are amortized only to
the extent they exceed 10% of the higher of the market-related value of assets or the projected benefit obligation of the
respective plan. For the major U.S. plans, unamortized losses exceed this threshold and recognition is continuing
in 2013.
See Note 16 of the Notes to the Financial Statements for more information regarding costs and assumptions for
employee retirement benefits.
Sensitivity Analysis. The December 31, 2012 pension funded status and 2013 expense are affected by year-
end 2012 assumptions. These sensitivities may be asymmetric and are specific to the time periods noted. They also may
not be additive, so the impact of changing multiple factors simultaneously cannot be calculated by combining the
individual sensitivities shown. The effect of the indicated increase/(decrease) in factors which generally have the largest
impact on pension expense and obligation is shown below (in millions):
Percentage Increase/(Decrease) in:
Point 2013 Expense December 31, 2012 Obligation
Assumption Change U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
Discount rate +/- 1.0 pt. $(300)/360 $(300)/350 $(5,200)/6,400 $(4,000)/4,700
Expected long-term rate of return on assets +/- 1.0 (390)/390 (210)/210
Other Postretirement Employee Benefits
Nature of Estimates Required. The estimation of our obligations, costs, and liabilities associated with OPEB, primarily
retiree health care and life insurance, requires that we make use of estimates of the present value of the projected future
payments to all participants, taking into consideration the likelihood of potential future events such as health care cost
increases and demographic experience, which may have an effect on the amount and timing of future payments.
Assumptions and Approach Used. The assumptions used in developing the required estimates include the following
key factors:
• Discount rates. We base the discount rate assumption primarily on the results of a cash flow matching analysis,
which matches the future cash outflows for each plan to a yield curve comprised of high quality bonds specific to the
country of the plan. Benefit payments are discounted at the rates on the curve and a single discount rate specific to
the plan is determined.
• Health care cost trends. Our health care cost trend assumptions are developed based on historical cost data, the
near-term outlook, and an assessment of likely long-term trends.
• Salary growth. Salary growth assumptions reflect our long-term actual experience, our outlook, and assumed
inflation.
• Retirement rates. Retirement rates are developed to reflect actual and projected plan experience.
• Mortality rates. Mortality rates are developed to reflect actual and projected plan experience.
Plan obligations and costs are based on existing retirement plan provisions. No assumption is made regarding any
potential future changes to benefit provisions beyond those to which we are presently committed (e.g., in existing labor
contracts).
The effects of actual results differing from our assumptions and the effects of changing assumptions are included in
unamortized net gains and losses. Unamortized gains and losses are amortized over future periods and, therefore,
generally affect our recognized expense in future periods. The weighted average discount rate used to determine the
benefit obligation for U.S. plans at December 31, 2012 was 3.8%, compared with 4.6% at December 31, 2011, resulting in
an unamortized loss of $410 million. This amount is expected to be recognized as a component of net expense over the
expected future years of service (approximately 12 years).
See Note 16 of the Notes to the Financial Statements for more information regarding OPEB costs and assumptions.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
52
Plan obligations and costs are based on existing retirement plan provisions. No assumption is made regarding any
potential future changes to benefit provisions beyond those to which we are presently committed (e.g., in existing labor
contracts).
The effects of actual results differing from our assumptions and the effects of changing assumptions are included in
unamortized net gains and losses. Unamortized gains and losses are amortized over future periods and, therefore,
generally affect our recognized expense in future periods. Amounts are recognized as a component of net expense over
the expected future years of service (approximately 11 years for the major U.S. plans). In 2012, the U.S. actual return on
assets was 14.2%, which was higher than the expected long-term rate of return of 7.5%. The year-end 2012 weighted
average discount rates for the U.S. and non-U.S. plans decreased by 80 basis points and 92 basis points, respectively.
These differences resulted in unamortized losses of about $6 billion. Unamortized gains and losses are amortized only to
the extent they exceed 10% of the higher of the market-related value of assets or the projected benefit obligation of the
respective plan. For the major U.S. plans, unamortized losses exceed this threshold and recognition is continuing
in 2013.
See Note 16 of the Notes to the Financial Statements for more information regarding costs and assumptions for
employee retirement benefits.
Sensitivity Analysis. The December 31, 2012 pension funded status and 2013 expense are affected by year-
end 2012 assumptions. These sensitivities may be asymmetric and are specific to the time periods noted. They also may
not be additive, so the impact of changing multiple factors simultaneously cannot be calculated by combining the
individual sensitivities shown. The effect of the indicated increase/(decrease) in factors which generally have the largest
impact on pension expense and obligation is shown below (in millions):
Percentage Increase/(Decrease) in:
Point 2013 Expense December 31, 2012 Obligation
Assumption Change U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans
Discount rate +/- 1.0 pt. $(300)/360 $(300)/350 $(5,200)/6,400 $(4,000)/4,700
Expected long-term rate of return on assets +/- 1.0 (390)/390 (210)/210
Other Postretirement Employee Benefits
Nature of Estimates Required. The estimation of our obligations, costs, and liabilities associated with OPEB, primarily
retiree health care and life insurance, requires that we make use of estimates of the present value of the projected future
payments to all participants, taking into consideration the likelihood of potential future events such as health care cost
increases and demographic experience, which may have an effect on the amount and timing of future payments.
Assumptions and Approach Used. The assumptions used in developing the required estimates include the following
key factors:
• Discount rates. We base the discount rate assumption primarily on the results of a cash flow matching analysis,
which matches the future cash outflows for each plan to a yield curve comprised of high quality bonds specific to the
country of the plan. Benefit payments are discounted at the rates on the curve and a single discount rate specific to
the plan is determined.
• Health care cost trends. Our health care cost trend assumptions are developed based on historical cost data, the
near-term outlook, and an assessment of likely long-term trends.
• Salary growth. Salary growth assumptions reflect our long-term actual experience, our outlook, and assumed
inflation.
• Retirement rates. Retirement rates are developed to reflect actual and projected plan experience.
• Mortality rates. Mortality rates are developed to reflect actual and projected plan experience.
Plan obligations and costs are based on existing retirement plan provisions. No assumption is made regarding any
potential future changes to benefit provisions beyond those to which we are presently committed (e.g., in existing labor
contracts).
The effects of actual results differing from our assumptions and the effects of changing assumptions are included in
unamortized net gains and losses. Unamortized gains and losses are amortized over future periods and, therefore,
generally affect our recognized expense in future periods. The weighted average discount rate used to determine the
benefit obligation for U.S. plans at December 31, 2012 was 3.8%, compared with 4.6% at December 31, 2011, resulting in
an unamortized loss of $410 million. This amount is expected to be recognized as a component of net expense over the
expected future years of service (approximately 12 years).
See Note 16 of the Notes to the Financial Statements for more information regarding OPEB costs and assumptions.

Ford Motor Company | 2012 Annual Report 53
Management’s Discussion and Analysis of Financial Condition and Results of Operations
53
Sensitivity Analysis. The effect on U.S. and Canadian plans of a one percentage point increase/(decrease) in the
assumed discount rate would be a (decrease)/increase in the postretirement health care benefit expense for 2013 of
approximately $(40) million/$50 million, and in the year-end 2012 obligation of approximately $(780) million/$940 million.
Income Taxes
Nature of Estimates Required. We must make estimates and apply judgment in determining the provision for income
taxes for financial reporting purposes. We make these estimates and judgments primarily in the following areas: (i) the
calculation of tax credits, (ii) the calculation of differences in the timing of recognition of revenue and expense for tax and
financial statement purposes that will ultimately be reported in tax returns, as well as (iii) the calculation of interest and
penalties related to uncertain tax positions. Changes in these estimates and judgments may result in a material increase
or decrease to our tax provision, which would be recorded in the period in which the change occurs.
Assumptions and Approach Used. We are subject to the income tax laws and regulations of the many jurisdictions in
which we operate. These tax laws and regulations are complex and involve uncertainties in the application to our facts
and circumstances that may be open to interpretation. We recognize benefits for these uncertain tax positions based
upon a process that requires judgment regarding the technical application of the law, regulations and various related
judicial opinions. If, in our judgment, it is more likely than not that the uncertain tax position will be settled favorably to us,
we estimate an amount that ultimately will be realized. This process is inherently subjective, since it requires our
assessment of the probability of future outcomes. We evaluate these uncertain tax positions on a quarterly basis,
including consideration of changes in facts and circumstances, such as new regulations or recent judicial opinions, as well
as the status of audit activities by taxing authorities. Changes to our estimate of the amount to be realized are recorded in
our provision for income taxes during the period in which the change occurred.
We must also assess the likelihood that we will be able to recover our deferred tax assets against future sources of
taxable income. GAAP requires a reduction of the carrying amount of deferred tax assets by recording a valuation
allowance if, based on all available evidence, it is more likely than not (defined as a likelihood of more than 50%) that all
or a portion of such assets will not be realized. We presently believe that a valuation allowance of $1.9 billion is required,
primarily for deferred tax assets related to our Ford South America operations, as well as various U.S. state and local net
operating losses. We believe that we ultimately will recover the remaining $20.8 billion of deferred tax assets. Within this
amount is $1.4 billion of net deferred tax assets related to our European operations. We have assessed recoverability of
these assets, and concluded that no valuation allowance is required. We will continue to monitor recoverability as we
progress our European transformation plan.
Changes in our judgment regarding our ability to recover our deferred tax assets would be reflected in our tax
provision in the period in which the change occurred. We expect that continued delivery of our One Ford plan could lead
to the reduction in the overall level of valuation allowance related to U.S state and local net operating losses in the
foreseeable future.
For additional information regarding income taxes, see Note 24 of the Notes to the Financial Statements.
Allowance for Credit Losses
The allowance for credit losses is Ford Credit’s estimate of the probable credit losses inherent in finance receivables
and operating leases at the date of the balance sheet. Consistent with its normal practices and policies, Ford Credit
assesses the adequacy of its allowance for credit losses quarterly and regularly evaluates the assumptions and models
used in establishing the allowance. Because credit losses can vary substantially over time, estimating credit losses
requires a number of assumptions about matters that are uncertain.

Nature of Estimates Required. Ford Credit estimates the probable credit losses inherent in finance receivables and
operating leases based on several factors.

Consumer Segment. The retail installment and lease portfolio is evaluated using a combination of models and
management judgment, and is based on factors such as historical trends in credit losses and recoveries (including key
metrics such as delinquencies, repossessions, and bankruptcies), the composition of Ford Credit’s present portfolio
(including vehicle brand, term, risk evaluation, and new/used vehicles), trends in historical and projected used vehicle
values, and economic conditions. Estimates from models may not fully reflect losses inherent in the present portfolio, and
an element of the allowance for credit losses is established for the imprecision inherent in loan loss models. Reasons for
imprecision include changes in economic trends and conditions, portfolio composition, and other relevant factors.

For more information visit www.annualreport.ford.com

54 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
54
Assumptions Used. Ford Credit makes projections of two key assumptions:

• Frequency. The number of finance receivables and operating lease contracts that Ford Credit expects will default
over a period of time, measured as repossessions; and
• Loss severity. The expected difference between the amount of money a customer owes Ford Credit when Ford
Credit charges off the finance contract and the amount Ford Credit receives, net of expenses, from selling the
repossessed vehicle, including any recoveries from the customer.

Ford Credit uses these assumptions to assist it in estimating its allowance for credit losses. See Note 9 of the Notes
to the Financial Statements for more information regarding allowance for credit losses.
Sensitivity Analysis. Changes in the assumptions used to derive frequency and severity would affect the allowance
for credit losses. The effect of the indicated increase/decrease in the assumptions is shown below for Ford Credit’s
U.S. Ford and Lincoln retail and lease portfolio (in millions):
Increase/(Decrease)
Assumption
Percentage
Point Change
December 31, 2012
Allowance for
Credit Losses
2012
Expense
Repossession ratios (a) +/- 0.1 pt. $20/$(20) $20/$(20)
Loss severity +/- 1.0 5/(5) 5/(5)
__________
(a) Reflects the number of finance receivables and operating lease contracts that Ford Credit expects will default over a period of time relative to the
average number of contracts outstanding.
Non-Consumer Segment. We estimate an allowance using an LTR model for non-consumer receivables that are not
specifically identified as impaired. All accounts that are specifically identified as impaired are excluded from the
calculation of the non-specific or collective allowance. The non-consumer portfolio is evaluated by segmenting individual
loans by the risk characteristics of the loan (such as the amount of the loan, the nature of collateral, and the financial
status of the dealer). The loans are analyzed to determine if individual loans are impaired, and an allowance is estimated
for the expected loss of these loans.
Changes in Ford Credit’s assumptions affect the Provision for credit and insurance losses on our income statement
and the allowance for credit losses contained within Finance receivables, net and Net investment in operating leases on
our balance sheet, in each case under the Financial Services sector.
Accumulated Depreciation on Vehicles Subject to Operating Leases

Accumulated depreciation on vehicles subject to operating leases reduces the value of the leased vehicles in our
operating lease portfolio from their original acquisition value to their expected residual value at the end of the lease term.
These vehicles primarily consist of retail lease contracts for Ford Credit and vehicles sold to daily rental car companies
subject to a guaranteed repurchase option (“rental repurchase vehicles”) for the Automotive sector.

We monitor residual values each month, and we review the adequacy of our accumulated depreciation on a quarterly
basis. If we believe that the expected residual values for our vehicles have changed, we revise depreciation to ensure
that our net investment in operating leases (equal to our acquisition value of the vehicles less accumulated depreciation)
will be adjusted to reflect our revised estimate of the expected residual value at the end of the lease term. Such
adjustments to depreciation expense would result in a change in the depreciation rates of the vehicles subject to operating
leases, and are recorded prospectively on a straight-line basis.

For retail leases, each lease customer has the option to buy the leased vehicle at the end of the lease or to return the
vehicle to the dealer. Ford Credit’s North America operating lease activity was as follows for each of the last three years
(in thousands, except percentages):
2012 2011 2010
Vehicle return volume 76 144 281
Return rate 60% 59% 69%
For rental repurchase vehicles, practically all vehicles have been returned to us.

Nature of Estimates Required. Each operating lease in our portfolio represents a vehicle we own that has been
leased to a customer. At the time we purchase a lease, we establish an expected residual value for the vehicle. We

Ford Motor Company | 2012 Annual Report 55
Management’s Discussion and Analysis of Financial Condition and Results of Operations
55
estimate the expected residual value by evaluating recent auction values, historical return volumes for our leased
vehicles, industry-wide used vehicle prices, our marketing incentive plans, and vehicle quality data.

Assumptions Used. For retail leases, our accumulated depreciation on vehicles subject to operating leases is based
on our assumptions regarding:

• Auction value. Ford Credit’s projection of the market value of the vehicles when we sell them at the end of the
lease; and
• Return volume. Ford Credit’s projection of the number of vehicles that will be returned at lease-end.

See Note 8 of the Notes to the Financial Statements for more information regarding accumulated depreciation on
vehicles subject to operating leases.
Sensitivity Analysis. For returned vehicles, we face a risk that the amount we obtain from the vehicle sold at auction
will be less than our estimate of the expected residual value for the vehicle. The effect of the indicated increase/decrease
in the assumptions for our U.S. Ford and Lincoln retail and lease portfolio is as follows:
Increase/(Decrease)
Assumption
Percentage
Change
December 31, 2012
Accumulated
Depreciation on
Vehicles Subject to
Operating Leases
2013
Expense
Future auction values +/- 1.0 $47/$(47) $12/$(12)
Return volumes +/- 1.0 3/(3) 1/(1)
The impact of the increased accumulated supplemental depreciation in 2012 would be charged to expense in the
2013 – 2016 periods. Adjustments to the amount of accumulated depreciation on operating leases are reflected on our
balance sheet as Net investment in operating leases and on the income statement in Depreciation, in each case under the
Financial Services sector.
Automotive Sector Long-Lived Asset Impairment Testing
Nature of Estimates Required – Long-Lived Assets. Long-lived asset groups are tested for recoverability when
changes in circumstances indicate the carrying value may not be recoverable. Events that trigger a test for recoverability
include material adverse changes in projected revenues and expenses, significant underperformance relative to historical
and projected future operating results, and significant negative industry or economic trends. When a triggering event
occurs, a test for recoverability is performed, comparing projected undiscounted future cash flows to the carrying value of
the asset group. If the test for recoverability identifies a possible impairment, the asset group’s fair value is measured
relying primarily on a discounted cash flow methodology. An impairment charge is recognized for the amount by which
the carrying value of the asset group exceeds its estimated fair value. A test for recoverability also is performed when
management has committed to a plan to sell or otherwise dispose of an asset group and the plan is expected to be
completed within a year. When an impairment loss is recognized for assets to be held and used, the adjusted carrying
amount of those assets is depreciated over its remaining useful life. Restoration of a previously recognized long-lived
asset impairment loss is not allowed.
Assumptions and Approach Used. We measure the fair value of a reporting unit or asset group based on market
prices (i.e., the amount for which the asset could be sold to a third party), when available. When market prices are not
available, we estimate the fair value of the reporting unit or asset group using the income approach and/or the market
approach. The income approach uses cash flow projections. Inherent in our development of cash flow projections are
assumptions and estimates derived from a review of our operating results, business plan forecasts, expected growth
rates, and cost of capital, similar to those a market participant would use to assess fair value. We also make certain
assumptions about future economic conditions and other data. Many of the factors used in assessing fair value are
outside the control of management, and these assumptions and estimates may change in future periods.
Changes in assumptions or estimates can materially affect the fair value measurement of a reporting unit or asset
group, and therefore can affect the test results. The following are key assumptions we use in making cash flow
projections:

• Business projections. We make assumptions about the demand for our products in the marketplace. These
assumptions drive our planning assumptions for volume, mix, and pricing. We also make assumptions about our
For more information visit www.annualreport.ford.com

56 Ford Motor Company | 2012 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations
56
cost levels (e.g., capacity utilization, cost performance, etc.). These projections are derived using our internal
business plan forecasts that are updated at least annually and reviewed by our Board of Directors.
• Long-term growth rate. A growth rate is used to calculate the terminal value of the business, and is added to the
present value of the debt-free interim cash flows. The growth rate is the expected rate at which a business unit’s
earnings stream is projected to grow beyond the planning period.
• Discount rate. When measuring possible impairment, future cash flows are discounted at a rate that is consistent
with a weighted-average cost of capital that we anticipate a potential market participant would use. Weighted-
average cost of capital is an estimate of the overall risk-adjusted after-tax rate of return required by equity and
debt holders of a business enterprise.
• Economic projections. Assumptions regarding general economic conditions are included in and affect our
assumptions regarding industry sales and pricing estimates for our vehicles. These macro-economic
assumptions include, but are not limited to, industry sales volumes, inflation, interest rates, prices of raw materials
(i.e., commodities), and foreign currency exchange rates.
The market approach is another method for measuring the fair value of a reporting unit or asset group. This approach
relies on the market value (i.e., market capitalization) of companies that are engaged in the same or similar line of
business.
During the third quarter of 2012, operating profits and cash flow from operations outside of North America remained
under pressure. In particular, industry sales volume for the markets we track in Europe declined significantly in recent
years with only modest improvement expected by mid-decade, suggesting that current changes in the European business
environment are more structural than cyclical in nature. Against this backdrop, we determined that it was appropriate to
test for impairment the long-lived assets of our Ford Europe segment. Using our economic and business projections,
including an assumption of an 8% operating margin for Ford Europe over the longer term, we determined that the carrying
value of our Ford Europe long-lived asset group at September 30, 2012 did not exceed fair value. Our long-term
economic and business projections did not change during the fourth quarter of 2012. If in future quarters our economic or
business projections were to change as a result of our plans or changes in the business environment, we would undertake
additional testing as appropriate which could result in an impairment of long-lived assets.
ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED
For information on accounting standards issued but not yet adopted, see Note 3 of the Notes to the Financial
Statements.

Ford Motor Company | 2012 Annual Report 57
Management’s Discussion and Analysis of Financial Condition and Results of Operations
57
AGGREGATE CONTRACTUAL OBLIGATIONS
We are party to many contractual obligations involving commitments to make payments to third parties. Most of these
are debt obligations incurred by our Financial Services sector. Long-term debt may have fixed or variable interest rates.
For long-term debt with variable-rate interest, we estimate the future interest payments based on projected market interest
rates for various floating-rate benchmarks received from third parties. In addition, as part of our normal business
practices, we enter into contracts with suppliers for purchases of certain raw materials, components, and services to
facilitate adequate supply of these materials and services. These arrangements may contain fixed or minimum quantity
purchase requirements. “Purchase obligations” are defined as off-balance sheet agreements to purchase goods or
services that are enforceable and legally binding on the Company and that specify all significant terms.
The table below summarizes our contractual obligations as of December 31, 2012 (in millions):
Payments Due by Period
2013 2014 – 2015 2016 – 2017
2018 and
Thereafter Total
Automotive Sector
On-balance sheet
Long-term debt (a) (b) (excluding capital leases) $ 893 $ 2,576 $ 2,307 $ 8,216 $ 13,992
Interest payments relating to long-term debt (c) 589 1,113 990 6,872 9,564
Capital leases 9 11 5 4 29
Pension funding (d) 458 774 426 — 1,658
Off-balance sheet
Purchase obligations 1,873 1,668 880 936 5,357
Operating leases 217 333 172 172 894
Total Automotive sector 4,039 6,475 4,780 16,200 31,494
Financial Services Sector
On-balance sheet
Long-term debt (a) (b) (excluding capital leases) 19,630 30,284 14,261 8,222 72,397
Interest payments relating to long-term debt (c) 2,621 3,468 1,717 1,762 9,568
Capital leases 1 2 — — 3
Off-balance sheet
Purchase obligations 29 4 3 1 37
Operating leases 52 75 53 24 204
Total Financial Services sector 22,333 33,833 16,034 10,009 82,209
Total Company $ 26,372 $ 40,308 $ 20,814 $ 26,209 $ 113,703
__________
(a) Amount includes, prior to adjustment noted above, $902 million for the Automotive sector and $19,631 million for the Financial Services sector for
the current portion of long-term debt. See Note 17 of the Notes to the Financial Statements for additional discussion.
(b) Automotive sector excludes unamortized debt discounts of $(249) million. Financial Services sector excludes unamortized debt discounts of
$(134) million and adjustments of $791 million related to designated fair value hedges of the debt.
(c) Excludes amortization of debt discounts/premiums.
(d) Amounts represent our estimate of contractually obligated deficit contributions to U.K. plans. See Note 16 for further information regarding our
expected 2013 pension contributions and funded status.
The amount of unrecognized tax benefits for 2012 of $1.5 billion (see Note 24 of the Notes to the Financial
Statements for additional discussion) is excluded from the table above. Final settlement of a significant portion of these
obligations will require bilateral tax agreements among us and various countries, the timing of which cannot reasonably be
estimated.
For additional information regarding operating lease obligations, pension and OPEB obligations, and long-term debt,
see Notes 8, 16, and 17, respectively, of the Notes to the Financial Statements.
For more information visit www.annualreport.ford.com

58 Ford Motor Company | 2012 Annual Report

58
Quantitative and Qualitative Disclosures About Market Risk
OVERVIEW
We are exposed to a variety of market and other risks, including the effects of changes in foreign currency exchange
rates, commodity prices, interest rates, as well as risks to availability of funding sources, hazard events, and specific asset
risks.
These risks affect our Automotive and Financial Services sectors differently. We monitor and manage these
exposures as an integral part of our overall risk management program, which includes regular reports to a central
management committee, the Global Risk Management Committee (“GRMC”). The GRMC is chaired by our Chief
Financial Officer, and its members include our Treasurer, our Corporate Controller, and other members of senior
management.
Our Automotive and Financial Services sectors are exposed to liquidity risk, or the possibility of having to curtail their
businesses or being unable to meet present and future financial obligations as they come due because funding sources
may be reduced or become unavailable. We maintain plans for sources of funding to ensure liquidity through a variety of
economic or business cycles. As discussed in greater detail in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” our funding sources include sales of receivables in securitizations and other
structured financings, unsecured debt issuances, equity and equity-linked issuances, and bank borrowings.
We are exposed to a variety of insurable risks, such as loss or damage to property, liability claims, and employee
injury. We protect against these risks through a combination of self-insurance and the purchase of commercial insurance
designed to protect against events that could generate significant losses.
Direct responsibility for the execution of our market risk management strategies resides with our Treasurer’s Office
and is governed by written policies and procedures. Separation of duties is maintained between the development and
authorization of derivative trades, the transaction of derivatives, and the settlement of cash flows. Regular audits are
conducted to ensure that appropriate controls are in place and that they remain effective. In addition, our market risk
exposures and our use of derivatives to manage these exposures are approved by the GRMC, and reviewed by the Audit
Committee of our Board of Directors.
In accordance with corporate risk management policies, we use derivative instruments, when available, such as
forward contracts, swaps and options that economically hedge certain exposures (foreign currency, commodity, and
interest rates). Derivative positions, when available, are used to hedge underlying exposures; we do not use derivative
contracts for trading, market-making or speculative purposes. In certain instances, we forgo hedge accounting, and, in
certain other instances, our derivatives do not qualify for hedge accounting. Either situation results in unrealized gains
and losses that are recognized currently in net income. For additional information on our derivatives, see Note 18 of the
Notes to the Financial Statements.
The market and counterparty risks of our Automotive sector and Ford Credit are discussed and quantified below.
AUTOMOTIVE MARKET AND COUNTERPARTY RISK

Our Automotive sector frequently has expenditures and receipts denominated in foreign currencies, including the
following: purchases and sales of finished vehicles and production parts, debt and other payables, subsidiary dividends,
and investments in foreign operations. These expenditures and receipts create exposures to changes in exchange rates.
We also are exposed to changes in prices of commodities used in our Automotive sector and changes in interest rates.

Foreign currency risk and commodity risk are measured and quantified using a model to evaluate the sensitivity of the
fair value of currency and commodity derivative instruments with exposure to market risk that assumes instantaneous,
parallel shifts in rates and/or prices. For options and instruments with non-linear returns, appropriate models are utilized
to determine the impact of shifts in rates and prices.
Foreign Currency Risk. Foreign currency risk is the possibility that our financial results could be better or worse than
planned because of changes in currency exchange rates. Accordingly, our normal practice is to use derivative
instruments, when available, to hedge our economic exposure with respect to forecasted revenues and costs, assets,
liabilities, investments in foreign operations, and firm commitments denominated in foreign currencies. In our hedging
actions, we use primarily instruments commonly used by corporations to reduce foreign exchange risk (e.g., forward
contracts).

Ford Motor Company | 2012 Annual Report 59
Quantitative and Qualitative Disclosures About Market Risk
59
The net fair value of foreign exchange forward contracts (including adjustments for credit risk) as of
December 31, 2012 was a liability of $268 million compared to a liability of $236 million as of December 31, 2011. The
potential decrease in fair value from a 10% adverse change in the underlying exchange rates, in U.S. dollar terms, would
be about $2 billion at December 31, 2012 compared with a decrease of about $1.7 billion as of December 31, 2011. The
increase in potential market risk from the end of last year primarily results from an increase in the amount of foreign
currencies hedged during 2012.
Commodity Price Risk. Commodity price risk is the possibility that our financial results could be better or worse than
planned because of changes in the prices of commodities used in the production of motor vehicles, such as ferrous
metals (e.g., steel and iron castings), non-ferrous metals (e.g., aluminum), precious metals (e.g., palladium), energy
(e.g., natural gas and electricity), and plastics/resins (e.g., polypropylene). Steel and resins are two of our largest
commodity exposures and are among the most difficult to hedge.
Our normal practice is to use derivative instruments, when available, to hedge the price risk associated with the
purchase of those commodities that we can economically hedge (primarily non-ferrous metals and precious metals). In
our hedging actions, we use derivative instruments commonly used by corporations to reduce commodity price risk (e.g.,
financially settled forward contracts, swaps, and options).

The net fair value of commodity forward and option contracts (including adjustments for credit risk) as of
December 31, 2012 was a liability of $101 million (which reflects the cumulative mark to market net loss on our hedging
contracts for full year 2012), compared to a liability of $370 million as of December 31, 2011. The potential decrease in
fair value from a 10% adverse change in the underlying commodity prices, in U.S. dollar terms, would be about
$103 million at December 31, 2012, compared with a decrease of about $203 million at December 31, 2011. The
decrease in potential market risk from the end of last year primarily results from a decrease in the amount of commodities
hedged during 2012 with forward contracts (partially offset by an increase in the amount of commodities hedged with
option contracts).

In addition, our purchasing organization (with guidance from the GRMC as appropriate) negotiates contracts to ensure
continuous supply of raw materials. In some cases, these contracts stipulate minimum purchase amounts and specific
prices, and as such, play a role in managing price risk.

Interest Rate Risk. Interest rate risk relates to the gain or loss we could incur in our Automotive investment portfolios
due to a change in interest rates. Our interest rate sensitivity analysis on the investment portfolios includes cash and
cash equivalents and net marketable securities. At December 31, 2012, we had $24.3 billion in our Automotive
investment portfolios, compared to $22.9 billion at December 31, 2011. We invest the portfolios in securities of various
types and maturities, the value of which are subject to fluctuations in interest rates. The portfolios are classified as trading
portfolios and gains and losses (unrealized and realized) are reported in the income statement. The investment strategy
is based on clearly defined risk and liquidity guidelines to maintain liquidity, minimize risk, and earn a reasonable return on
the short-term investments. In investing our Automotive cash, safety of principal is the primary objective and risk-adjusted
return is the secondary objective.
At any time, a rise in interest rates could have a material adverse impact on the fair value of our portfolios. Assuming
a hypothetical increase in interest rates of one percentage point, the value of our portfolios would be reduced by about
$185 million. This compares to $95 million, as calculated as of December 31, 2011. While these are our best estimates
of the impact of the specified interest rate scenario, actual results could differ from those projected. The sensitivity
analysis presented assumes interest rate changes are instantaneous, parallel shifts in the yield curve. In reality, interest
rate changes of this magnitude are rarely instantaneous or parallel.

Counterparty Risk. Counterparty risk relates to the loss we could incur if an obligor or counterparty defaulted on an
investment or a derivative contract. We enter into master agreements with counterparties that allow netting of certain
exposures in order to manage this risk. Exposures primarily relate to investments in fixed income instruments and
derivative contracts used for managing interest rate, foreign currency exchange rate and commodity price risk. We,
together with Ford Credit, establish exposure limits for each counterparty to minimize risk and provide counterparty
diversification.
Our approach to managing counterparty risk is forward-looking and proactive, allowing us to take risk mitigation
actions before risks become losses. Exposure limits are established based on our overall risk tolerance and estimated
loss projections which are calculated from ratings-based historical default probabilities. The exposure limits are lower for
lower-rated counterparties and for longer-dated exposures. Our exposures are monitored on a regular basis and included
in periodic reports to our Treasurer.

60 Ford Motor Company | 2012 Annual Report
Quantitative and Qualitative Disclosures About Market Risk
60
Substantially all of our counterparty exposures are with counterparties that have an investment grade rating.
Investment grade is our guideline for counterparty minimum long-term ratings.

For additional information about derivative notional amount and fair value of derivatives, please refer to Note 18 of the
Notes to the Financial Statements.
FORD CREDIT MARKET RISK

Overview. Ford Credit is exposed to a variety of risks in the normal course of its business activities. In addition to
counterparty risk discussed above, Ford Credit is subject to the following additional types of risks that it seeks to identify,
assess, monitor, and manage, in accordance with defined policies and procedures:

• Market risk – the possibility that changes in interest and currency exchange rates will adversely affect cash flow
and economic value;
• Credit risk – the possibility of loss from a customer’s failure to make payments according to contract terms;
• Residual risk – the possibility that the actual proceeds received at lease termination will be lower than projections
or return volumes will be higher than projections; and
• Liquidity risk – the possibility that Ford Credit may be unable to meet all of its current and future obligations in a
timely manner.

Each form of risk is uniquely managed in the context of its contribution to Ford Credit’s overall global risk. Business
decisions are evaluated on a risk-adjusted basis and services are priced consistent with these risks. Credit and residual
risks, as well as liquidity risk, are discussed above in “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.” A discussion of Ford Credit’s market risks (interest rate risk and foreign currency risk) is included
below.

Interest Rate Risk. Ford Credit is exposed to interest rate risk to the extent that its assets and the related debt have
different re-pricing periods, and consequently, respond differently to changes in interest rates.

Ford Credit’s assets consist primarily of fixed-rate retail installment sale and lease contracts and floating-rate
wholesale receivables. Fixed-rate retail installment sale and lease contracts are originated principally with maturities
ranging between two and six years and generally require customers to make equal monthly payments over the life of the
contract. Wholesale receivables are originated to finance new and used vehicles held in dealers’ inventory and generally
require dealers to pay a floating rate.

Debt consists primarily of securitizations and short- and long-term unsecured debt. In the case of unsecured term
debt, and in an effort to have funds available throughout business cycles, Ford Credit may borrow at terms longer than the
terms of their assets, in most instances with maturities up to ten years. These debt instruments are principally fixed-rate
and require fixed and equal interest payments over the life of the instrument and a single principal payment at maturity.

Ford Credit’s interest rate risk management objective is to reduce volatility in its cash flows and volatility in its
economic value from changes in interest rates based on an established risk tolerance.

Ford Credit uses re-pricing gap analysis and economic value sensitivity analysis to evaluate potential long term
effects of changes in interest rates. It then enters into interest rate swaps to convert portions of its floating-rate debt to
fixed or its fixed-rate debt to floating to ensure that Ford Credit’s exposure falls within the established tolerances. Ford
Credit also uses pre-tax cash flow sensitivity analysis to monitor the level of near-term cash flow exposure. The pre-tax
cash flow sensitivity analysis measures the changes in expected cash flows associated with Ford Credit’s interest-rate-
sensitive assets, liabilities, and derivative financial instruments from hypothetical changes in interest rates over a twelve-
month horizon. Ford Credit’s Asset-Liability Committee reviews the re-pricing mismatch and exposure every month and
approves interest rate swaps required to maintain exposure within approved thresholds prior to execution.

To provide a quantitative measure of the sensitivity of its pre-tax cash flow to changes in interest rates, Ford Credit
uses interest rate scenarios that assume a hypothetical, instantaneous increase or decrease of one percentage point in all
interest rates, across all maturities (a “parallel shift”), as well as a base case that assumes that all interest rates remain
constant at existing levels. In reality, interest rate changes are rarely instantaneous or parallel and rates could move more
or less than the one percentage point assumed in Ford Credit’s analysis. As a result, the actual impact to pre-tax cash
flow could be higher or lower than the results detailed in the table below. These interest rate scenarios are purely
hypothetical and do not represent Ford Credit’s view of future interest rate movements.

Ford Motor Company | 2012 Annual Report 61
Quantitative and Qualitative Disclosures About Market Risk
61
Pre-tax cash flow sensitivity as of year-end 2012 and 2011 was as follows (in millions):
Pre-Tax Cash Flow Sensitivity (given a
one percentage point instantaneous
increase in interest rates)
Pre-Tax Cash Flow Sensitivity (given a
one percentage point instantaneous
decrease in interest rates) (a)
December 31, 2012 $ 77 $ (77)
December 31, 2011 $ 60 $ (60)
_____
(a) Pre-tax cash flow sensitivity given a one percentage point decrease in interest rates requires an assumption of negative interest rates in markets
where existing interest rates are below one percent.
Ford Credit expects more assets than debt and liabilities to re-price in the next twelve months. Other things being
equal, this means that during a period of rising interest rates, the interest earned on Ford Credit’s assets will increase
more than the interest paid on Ford Credit’s debt, thereby initially increasing Ford Credit’s pre-tax cash flow. During a
period of falling interest rates, Ford Credit would expect its pre-tax cash flow to initially decrease. Ford Credit’s pre-tax
cash flow sensitivity to interest rate movement is highlighted in the table above.
While the sensitivity analysis presented is Ford Credit’s best estimate of the impacts of the specified assumed interest
rate scenarios, its actual results could differ from those projected. The model Ford Credit uses to conduct this analysis is
heavily dependent on assumptions. Embedded in the model are assumptions regarding the reinvestment of maturing
asset principal, refinancing of maturing debt, replacement of maturing derivatives, exercise of options embedded in debt
and derivatives, and predicted repayment of retail installment sale and lease contracts ahead of contractual maturity.
Ford Credit’s repayment projections ahead of contractual maturity are based on historical experience. If interest rates or
other factors change, Ford Credit’s actual prepayment experience could be different than projected.

Foreign Currency Risk. Ford Credit’s policy is to minimize exposure to changes in currency exchange rates. To meet
funding objectives, Ford Credit borrows in a variety of currencies, principally U.S. dollars, Canadian dollars, Euros and
Pound Sterling. Ford Credit faces exposure to currency exchange rates if a mismatch exists between the currency of
receivables and the currency of the debt funding those receivables. When possible, receivables are funded with debt in
the same currency, minimizing exposure to exchange rate movements. When a different currency is used, Ford Credit
may use foreign currency swaps and foreign currency forwards to convert substantially all of its foreign currency debt
obligations to the local country currency of the receivables:

As a result of this policy, Ford Credit believes its market risk exposure relating to changes in currency exchange rates
is insignificant.

Derivative Fair Values. The net fair value of Ford Credit’s derivative financial instruments as of December 31, 2012
was an asset of $856 million, compared to an asset of $1.1 billion as of December 31, 2011. For additional information
regarding our Financial Services sector derivatives, see Note 18 of the Notes to the Financial Statements.
For more information visit www.annualreport.ford.com

62 Ford Motor Company | 2012 Annual Report

62
This page intentionally left blank.

Ford Motor Company | 2012 Annual Report 63

63
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of
Ford Motor Company
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income,
comprehensive income, equity and cash flows, including pages 64 through 155, present fairly, in all material respects, the
financial position of Ford Motor Company and its subsidiaries at December 31, 2012 and December 31, 2011, and the
results of their operations and their cash flows for each of the three years in the period ended December 31, 2012 in
conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012,
based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these financial
statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting in
this Annual Report. Our responsibility is to express opinions on these financial statements and on the Company’s internal
control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards
of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and
whether effective internal control over financial reporting was maintained in all material respects. Our audits of the
financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audits
provide a reasonable basis for our opinions.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The
accompanying sector balance sheets and the related sector statements of income and of cash flows are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as a whole.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and
procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
PricewaterhouseCoopers LLP
Detroit, Michigan
February 18, 2013

63
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of
Ford Motor Company
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income,
comprehensive income, equity and cash flows, including pages 64 through 155, present fairly, in all material respects, the
financial position of Ford Motor Company and its subsidiaries at December 31, 2012 and December 31, 2011, and the
results of their operations and their cash flows for each of the three years in the period ended December 31, 2012 in
conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012,
based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these financial
statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting in
this Annual Report. Our responsibility is to express opinions on these financial statements and on the Company’s internal
control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards
of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and
whether effective internal control over financial reporting was maintained in all material respects. Our audits of the
financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audits
provide a reasonable basis for our opinions.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The
accompanying sector balance sheets and the related sector statements of income and of cash flows are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as a whole.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and
procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
PricewaterhouseCoopers LLP
Detroit, Michigan
February 18, 2013
For more information visit www.annualreport.ford.com

64 Ford Motor Company | 2012 Annual Report

64
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(in millions, except per share amounts)
For the years ended December 31,
2012 2011 2010
Revenues
Automotive $ 126,567 $ 128,168 $ 119,280
Financial Services 7,685 8,096 9,674
Total revenues 134,252 136,264 128,954
Costs and expenses
Automotive cost of sales 112,578 113,345 104,451
Selling, administrative, and other expenses 12,182 11,578 11,909
Financial Services interest expense 3,115 3,614 4,345
Financial Services provision for credit and insurance losses 86 (33) (216)
Total costs and expenses 127,961 128,504 120,489
Automotive interest expense 713 817 1,807
Automotive interest income and other income/(loss), net (Note 21) 1,185 825 (362)
Financial Services other income/(loss), net (Note 21) 369 413 315
Equity in net income/(loss) of affiliated companies 588 500 538
Income before income taxes 7,720 8,681 7,149
Provision for/(Benefit from) income taxes (Note 24) 2,056 (11,541) 592
Net income 5,664 20,222 6,557
Less: Income/(Loss) attributable to noncontrolling interests (1) 9 (4)
Net income attributable to Ford Motor Company $ 5,665 $ 20,213 $ 6,561
AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 26)
Basic income $ 1.48 $ 5.33 $ 1.90
Diluted income $ 1.42 $ 4.94 $ 1.66
Cash dividends declared $ 0.15 $ 0.05 $ —
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in millions)
For the years ended December 31,
2012 2011 2010
Net income $ 5,664 $ 20,222 $ 6,557
Other comprehensive income/(loss), net of tax (Note 20)
Foreign currency translation 142 (720) (2,234)
Derivative instruments 6 (152) (24)
Pension and other postretirement benefits (4,268) (3,553) (1,190)
Net holding gain/(loss) — 2 (2)
Total other comprehensive income/(loss), net of tax (4,120) (4,423) (3,450)
Comprehensive income 1,544 15,799 3,107
Less: Comprehensive income/(loss) attributable to noncontrolling interests (1) 7 (5)
Comprehensive income attributable to Ford Motor Company $ 1,545 $ 15,792 $ 3,112
The accompanying notes are part of the financial statements.

Ford Motor Company | 2012 Annual Report 65

65
FORD MOTOR COMPANY AND SUBSIDIARIES
SECTOR INCOME STATEMENT
(in millions)
For the years ended December 31,
2012 2011 2010
AUTOMOTIVE
Revenues $ 126,567 $ 128,168 $ 119,280
Costs and expenses
Cost of sales 112,578 113,345 104,451
Selling, administrative, and other expenses 9,006 9,060 9,040
Total costs and expenses 121,584 122,405 113,491
Interest expense 713 817 1,807
Interest income and other income/(loss), net (Note 21) 1,185 825 (362)
Equity in net income/(loss) of affiliated companies 555 479 526
Income before income taxes — Automotive 6,010 6,250 4,146
FINANCIAL SERVICES
Revenues 7,685 8,096 9,674
Costs and expenses
Interest expense 3,115 3,614 4,345
Depreciation 2,524 1,843 2,024
Operating and other expenses 652 675 845
Provision for credit and insurance losses 86 (33) (216)
Total costs and expenses 6,377 6,099 6,998
Other income/(loss), net (Note 21) 369 413 315
Equity in net income/(loss) of affiliated companies 33 21 12
Income before income taxes — Financial Services 1,710 2,431 3,003
TOTAL COMPANY
Income before income taxes 7,720 8,681 7,149
Provision for/(Benefit from) income taxes (Note 24) 2,056 (11,541) 592
Net income 5,664 20,222 6,557
Less: Income/(Loss) attributable to noncontrolling interests (1) 9 (4)
Net income attributable to Ford Motor Company $ 5,665 $ 20,213 $ 6,561
The accompanying notes are part of the financial statements.
For more information visit www.annualreport.ford.com

66 Ford Motor Company | 2012 Annual Report

66
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)

December 31,
2012
December 31,
2011
ASSETS
Cash and cash equivalents $ 15,659 $ 17,148
Marketable securities (Note 6) 20,284 18,618
Finance receivables, net (Note 7) 71,510 69,976
Other receivables, net 10,828 8,565
Net investment in operating leases (Note 8) 16,451 12,838
Inventories (Note 10) 7,362 5,901
Equity in net assets of affiliated companies (Note 11) 3,246 2,936
Net property (Note 13) 24,942 22,371
Deferred income taxes (Note 24) 15,185 15,125
Net intangible assets (Note 14) 87 100
Other assets 5,000 4,770
Total assets $ 190,554 $ 178,348
LIABILITIES
Payables $ 19,308 $ 17,724
Accrued liabilities and deferred revenue (Note 15) 49,407 45,369
Debt (Note 17) 105,058 99,488
Deferred income taxes (Note 24) 470 696
Total liabilities 174,243 163,277
Redeemable noncontrolling interest (Note 19) 322 —
EQUITY
Capital stock (Note 26)
Common Stock, par value $.01 per share (3,875 million shares issued) 39 37
Class B Stock, par value $.01 per share (71 million shares issued) 1 1
Capital in excess of par value of stock 20,976 20,905
Retained earnings 18,077 12,985
Accumulated other comprehensive income/(loss) (Note 20) (22,854) (18,734)
Treasury stock (292) (166)
Total equity attributable to Ford Motor Company 15,947 15,028
Equity attributable to noncontrolling interests 42 43
Total equity 15,989 15,071
Total liabilities and equity $ 190,554 $ 178,348

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 sheet above. See Note 12 for additional information on our VIEs.
December 31,
2012
December 31,
2011
ASSETS
Cash and cash equivalents $ 2,911 $ 3,402
Finance receivables, net 47,515 49,795
Net investment in operating leases 6,308 6,354
Other assets 4 157
LIABILITIES
Accrued liabilities and deferred revenue 134 97
Debt 40,245 41,421
The accompanying notes are part of the financial statements.

Ford Motor Company | 2012 Annual Report 67

67
FORD MOTOR COMPANY AND SUBSIDIARIES
SECTOR BALANCE SHEET (in millions)
December 31,
2012
December 31,
2011
ASSETS
Automotive
Cash and cash equivalents $ 6,247 $ 7,965
Marketable securities (Note 6) 18,178 14,984
Total cash and marketable securities 24,425 22,949
Receivables, less allowances of $115 and $126 5,361 4,219
Inventories (Note 10) 7,362 5,901
Deferred income taxes 3,488 1,791
Net investment in operating leases (Note 8) 1,415 1,356
Other current assets 1,124 1,053
Current receivable from Financial Services (Note 1) — 878
Total current assets 43,175 38,147
Equity in net assets of affiliated companies (Note 11) 3,112 2,797
Net property (Note 13) 24,813 22,229
Deferred income taxes 13,325 13,932
Net intangible assets (Note 14) 87 100
Non-current receivable from Financial Services (Note 1) — 32
Other assets 1,946 1,549
Total Automotive assets 86,458 78,786
Financial Services
Cash and cash equivalents 9,412 9,183
Marketable securities (Note 6) 2,106 3,835
Finance receivables, net (Note 7) 75,770 73,330
Net investment in operating leases (Note 8) 15,036 11,482
Equity in net assets of affiliated companies (Note 11) 134 139
Other assets 3,450 3,605
Receivable from Automotive (Note 1) 252 —
Total Financial Services assets 106,160 101,574
Intersector elimination (252) (1,112)
Total assets $ 192,366 $ 179,248
LIABILITIES
Automotive
Trade payables $ 15,107 $ 14,015
Other payables 3,044 2,734
Accrued liabilities and deferred revenue (Note 15) 15,358 15,003
Deferred income taxes 81 40
Debt payable within one year (Note 17) 1,386 1,033
Current payable to Financial Services (Note 1) 252 —
Total current liabilities 35,228 32,825
Long-term debt (Note 17) 12,870 12,061
Other liabilities (Note 15) 30,549 26,910
Deferred income taxes 514 255
Total Automotive liabilities 79,161 72,051
Financial Services
Payables 1,157 975
Debt (Note 17) 90,802 86,595
Deferred income taxes 1,687 1,301
Other liabilities and deferred income (Note 15) 3,500 3,457
Payable to Automotive (Note 1) — 910
Total Financial Services liabilities 97,146 93,238
Intersector elimination (252) (1,112)
Total liabilities 176,055 164,177
Redeemable noncontrolling interest (Note 19) 322 —
EQUITY
Capital stock (Note 26)
Common Stock, par value $.01 per share (3,875 million shares issued) 39 37
Class B Stock, par value $.01 per share (71 million shares issued) 1 1
Capital in excess of par value of stock 20,976 20,905
Retained earnings 18,077 12,985
Accumulated other comprehensive income/(loss) (Note 20) (22,854) (18,734)
Treasury stock (292) (166)
Total equity attributable to Ford Motor Company 15,947 15,028
Equity attributable to noncontrolling interests 42 43
Total equity 15,989 15,071
Total liabilities and equity $ 192,366 $ 179,248
The accompanying notes are part of the financial statements.
For more information visit www.annualreport.ford.com

68 Ford Motor Company | 2012 Annual Report

68
FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the years ended December 31,
2012 2011 2010
Cash flows from operating activities of continuing operations
Net cash provided by/(used in) operating activities $ 9,045 $ 9,784 $ 11,477
Cash flows from investing activities of continuing operations
Capital expenditures (5,488) (4,293) (4,092)
Acquisitions of retail and other finance receivables and operating leases (39,208) (35,866) (28,873)
Collections of retail and other finance receivables and operating leases 32,333 33,964 37,757
Purchases of securities (95,135) (68,723) (100,150)
Sales and maturities of securities 93,749 70,795 101,077
Cash change due to initial consolidation of businesses 191 — 94
Proceeds from sale of business 66 333 1,318
Settlements of derivatives (737) 353 (37)
Elimination of cash balances upon disposition of discontinued/held-for-sale operations — (69) (456)
Other (61) 465 270
Net cash provided by/(used in) investing activities (14,290) (3,041) 6,908
Cash flows from financing activities of continuing operations
Cash dividends (763) — —
Purchases of Common Stock (125) — —
Sales of Common Stock — — 1,339
Changes in short-term debt 1,208 2,841 (1,754)
Proceeds from issuance of other debt 32,436 35,921 30,821
Principal payments on other debt (29,210) (43,095) (47,625)
Payments on notes/transfer of cash equivalents to the UAW Voluntary Employee Benefit
Association (“VEBA”) Trust — — (7,302)
Other 159 92 100
Net cash provided by/(used in) financing activities 3,705 (4,241) (24,421)
Effect of exchange rate changes on cash and cash equivalents 51 (159) (53)
Net increase/(decrease) in cash and cash equivalents $ (1,489) $ 2,343 $ (6,089)
Cash and cash equivalents at January 1 $ 17,148 $ 14,805 $ 20,894
Net increase/(decrease) in cash and cash equivalents (1,489) 2,343 (6,089)
Cash and cash equivalents at December 31 $ 15,659 $ 17,148 $ 14,805
The accompanying notes are part of the financial statements.

Ford Motor Company | 2012 Annual Report 69

69
FORD MOTOR COMPANY AND SUBSIDIARIES
CONDENSED SECTOR STATEMENT OF CASH FLOWS
(in millions)
For the years ended December 31,
2012 2011 2010
Automotive
Financial
Services Automotive
Financial
Services Automotive
Financial
Services
Cash flows from operating activities of continuing
operations
Net cash provided by/(used in) operating activities (Note 27) $ 6,266 $ 3,957 $ 9,368 $ 2,405 $ 6,363 $ 3,798
Cash flows from investing activities of continuing
operations
Capital expenditures (5,459) (29) (4,272) (21) (4,066) (26)
Acquisitions of retail and other finance receivables and
operating leases — (39,151) — (35,845) — (28,811)
Collections of retail and other finance receivables and
operating leases — 32,333 — 33,964 — 37,757
Net collections/(acquisitions) of wholesale receivables — (1,235) — (2,010) — (46)
Purchases of securities (73,100) (22,035) (44,353) (24,370) (53,614) (46,728)
Sales and maturities of securities 70,202 23,748 43,525 27,270 54,857 46,866
Cash change due to initial consolidation of businesses 191 — — — 94 —
Proceeds from sale of business 54 12 310 23 1,318 —
Settlements of derivatives (788) 51 135 218 (196) 159
Investing activity (to)/from Financial Services 925 — 2,903 — 2,455 —
Elimination of cash balances upon disposition of
discontinued/held-for-sale operations — — (69) — (456) —
Other (49) (12) 280 185 185 85
Net cash provided by/(used in) investing activities (8,024) (6,318) (1,541) (586) 577 9,256
Cash flows from financing activities of continuing
operations
Cash dividends (763) — — — — —
Purchases of Common Stock (125) — — — — —
Sales of Common Stock — — — — 1,339 —
Changes in short-term debt 154 1,054 (396) 3,237 391 (2,145)
Proceeds from issuance of other debt 1,553 30,883 2,452 33,469 2,648 28,173
Principal payments on other debt (810) (28,601) (8,058) (35,037) (9,144) (38,935)
Payments on notes/transfer of cash equivalents to the UAW
VEBA Trust — — — — (6,002) —
Financing activity to/(from) Automotive — (925) — (2,903) — (2,455)
Other 31 128 70 22 292 (192)
Net cash provided by/(used in) financing activities 40 2,539 (5,932) (1,212) (10,476) (15,554)
Effect of exchange rate changes on cash and cash
equivalents — 51 (231) 72 75 (128)
Net increase/(decrease) in cash and cash equivalents $ (1,718) $ 229 $ 1,664 $ 679 $ (3,461) $ (2,628)
Cash and cash equivalents at January 1 $ 7,965 $ 9,183 $ 6,301 $ 8,504 $ 9,762 $ 11,132
Net increase/(decrease) in cash and cash equivalents (1,718) 229 1,664 679 (3,461) (2,628)
Cash and cash equivalents at December 31 $ 6,247 $ 9,412 $ 7,965 $ 9,183 $ 6,301 $ 8,504
The accompanying notes are part of the financial statements.
For more information visit www.annualreport.ford.com

70 Ford Motor Company | 2012 Annual Report

70
FORD MOTOR COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EQUITY
(in millions)
Equity/(Deficit) Attributable to Ford Motor Company

Capital
Stock
Cap. in
Excess
of
Par
Value
of
Stock
Retained
Earnings/
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income/(Loss)
(Note 20)
Treasury
Stock Total
Equity/
(Deficit)
Attributable
to Non-
controlling
Interests
Total
Equity/
(Deficit)
Balance at December 31, 2009 $ 34 $ 16,786 $ (13,599) $ (10,864) $ (177) $ (7,820) $ 38 $ (7,782)
Net income — — 6,561 — — 6,561 (4) 6,557
Other comprehensive income/(loss), net
of tax — — — (3,449) — (3,449) (1) (3,450)
Common stock issued (including share-
based compensation impacts) 4 4,017 — — — 4,021 — 4,021
Treasury stock/other — — — — 14 14 — 14
Cash dividends declared — — — — — — (2) (2)
Balance at December 31, 2010 $ 38 $ 20,803 $ (7,038) $ (14,313) $ (163) $ (673) $ 31 $ (642)
Balance at December 31, 2010 $ 38 $ 20,803 $ (7,038) $ (14,313) $ (163) $ (673) $ 31 $ (642)
Net income — — 20,213 — — 20,213 9 20,222
Other comprehensive income/(loss), net
of tax — — — (4,421) — (4,421) (2) (4,423)
Common stock issued (including share-
based compensation impacts) — 102 — — — 102 — 102
Treasury stock/other — — — — (3) (3) 5 2
Cash dividends declared — — (190) — — (190) — (190)
Balance at December 31, 2011 $ 38 $ 20,905 $ 12,985 $ (18,734) $ (166) $ 15,028 $ 43 $ 15,071
Balance at December 31, 2011 $ 38 $ 20,905 $ 12,985 $ (18,734) $ (166) $ 15,028 $ 43 $ 15,071
Net income — — 5,665 — — 5,665 (1) 5,664
Other comprehensive income/(loss), net
of tax — — — (4,120) — (4,120) — (4,120)
Common stock issued (including share-
based compensation impacts) 2 71 — — — 73 — 73
Treasury stock/other — — — — (126) (126) — (126)
Cash dividends declared — — (573) — — (573) — (573)
Balance at December 31, 2012 $ 40 $ 20,976 $ 18,077 $ (22,854) $ (292) $ 15,947 $ 42 $ 15,989
The accompanying notes are part of the financial statements.

Ford Motor Company | 2012 Annual Report 71

71
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
Table of Contents
Footnote Page
Note 1 Presentation
Note 2 Summary of Accounting Policies
Note 3 Accounting Standards Issued But Not Yet Adopted
Note 4 Fair Value Measurements
Note 5 Restricted Cash
Note 6 Marketable and Other Securities
Note 7 Finance Receivables
Note 8 Net Investment in Operating Leases
Note 9 Allowance for Credit Losses
Note 10 Inventories
Note 11 Equity in Net Assets of Affiliated Companies
Note 12 Variable Interest Entities
Note 13 Net Property and Lease Commitments
Note 14 Net Intangible Assets
Note 15 Accrued Liabilities and Deferred Revenue
Note 16 Retirement Benefits
Note 17 Debt and Commitments
Note 18 Derivative Financial Instruments and Hedging Activities
Note 19 Redeemable Noncontrolling Interest
Note 20 Accumulated Other Comprehensive Income/(Loss)
Note 21 Other Income/(Loss)
Note 22 Share-Based Compensation
Note 23 Employee Separation Actions
Note 24 Income Taxes
Note 25 Dispositions and Other Changes in Investments in Affiliates
Note 26 Capital Stock and Amounts Per Share
Note 27 Operating Cash Flows
Note 28 Segment Information
Note 29 Geographic Information
Note 30 Selected Quarterly Financial Data
Note 31 Commitments and Contingencies
72
76
78
79
85
86
87
93
94
97
98
99
102
103
104
105
119
127
131
132
133
133
137
138
141
144
146
148
152
153
154
For more information visit www.annualreport.ford.com

72 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
72
NOTE 1. PRESENTATION
For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us” or similar references mean Ford Motor Company
and our consolidated subsidiaries and our consolidated VIEs of which we are the primary beneficiary, unless the context
requires otherwise.
We prepare our financial statements in accordance with generally accepted accounting principles in the United States
(“GAAP”). We present the financial statements on a consolidated basis and on a sector basis for our Automotive and
Financial Services sectors. The additional information provided in the sector statements enables the reader to better
understand the operating performance, financial position, cash flows, and liquidity of our two very different businesses.
We eliminate all intercompany items and transactions in the consolidated and sector balance sheets. In certain
circumstances, presentation of these intercompany eliminations or consolidated adjustments differ between the
consolidated and sector financial statements. These line items are reconciled below under “Reconciliations between
Consolidated and Sector Financial Statements” or in related footnotes.
We reclassified certain prior year amounts in our consolidated financial statements to conform to current year
presentation.
Adoption of New Accounting Standards
Fair Value Measurement. On January 1, 2012, we adopted the new accounting standard that requires us to report the
level in the fair value hierarchy of assets and liabilities not measured at fair value in the balance sheet but for which the
fair value is disclosed, and to expand existing disclosures. See Note 4 for further disclosure regarding our fair value
measurements.
Comprehensive Income – Presentation. On January 1, 2012, we adopted the new accounting standard that modifies
the options for presentation of other comprehensive income. The new accounting standard requires us to present
comprehensive income either in a single continuous statement or two separate but consecutive statements. We have
elected to present comprehensive income in two separate but consecutive statements.
On January 1, 2012, we also adopted the new accounting standards Intangibles – Goodwill and Other, Transfers and
Servicing – Repurchase Agreements, and Financial Services – Insurance. The adoption of these new accounting
standards did not impact our financial condition or results of operations.

Ford Motor Company | 2012 Annual Report 73
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
73
NOTE 1. PRESENTATION (Continued)
Reconciliations between Consolidated and Sector Financial Statements
Sector to Consolidated Deferred Tax Assets and Liabilities. The difference between the total assets and total liabilities
as presented in our sector balance sheet and consolidated balance sheet is the result of netting deferred income tax
assets and liabilities. The reconciliation between the totals for the sector and consolidated balance sheets was as follows
(in millions):

December 31,
2012
December 31,
2011
Sector balance sheet presentation of deferred income tax assets
Automotive sector current deferred income tax assets $ 3,488 $ 1,791
Automotive sector non-current deferred income tax assets 13,325 13,932
Financial Services sector deferred income tax assets (a) 184 302
Total 16,997 16,025
Reclassification for netting of deferred income taxes (1,812) (900)
Consolidated balance sheet presentation of deferred income tax assets $ 15,185 $ 15,125
Sector balance sheet presentation of deferred income tax liabilities
Automotive sector current deferred income tax liabilities $ 81 $ 40
Automotive sector non-current deferred income tax liabilities 514 255
Financial Services sector deferred income tax liabilities 1,687 1,301
Total 2,282 1,596
Reclassification for netting of deferred income taxes (1,812) (900)
Consolidated balance sheet presentation of deferred income tax liabilities $ 470 $ 696
__________
(a) Financial Services deferred income tax assets are included in Financial Services other assets on our sector balance sheet.
For more information visit www.annualreport.ford.com

74 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
74
NOTE 1. PRESENTATION (Continued)
Sector to Consolidated Cash Flow. We present certain cash flows from wholesale receivables, finance receivables
and the acquisition of intersector debt differently on our sector and consolidated statements of cash flows. The
reconciliation between totals for the sector and consolidated cash flows for the years ended December 31 was as follows
(in millions):
2012 2011 2010
Automotive net cash provided by/(used in) operating activities $ 6,266 $ 9,368 $ 6,363
Financial Services net cash provided by/(used in) operating activities 3,957 2,405 3,798
Total sector net cash provided by/(used in) operating activities (Note 27) 10,223 11,773 10,161
Reclassifications from investing to operating cash flows
Wholesale receivables (a) (1,235) (2,010) (46)
Finance receivables (b) 57 21 62
Reclassifications from operating to financing cash flows
Payments on notes to the UAW VEBA Trust (c) — — 1,300
Consolidated net cash provided by/(used in) operating activities $ 9,045 $ 9,784 $ 11,477
Automotive net cash provided by/(used in) investing activities $ (8,024) $ (1,541) $ 577
Financial Services net cash provided by/(used in) investing activities (6,318) (586) 9,256
Total sector net cash provided by/(used in) investing activities (14,342) (2,127) 9,833
Reclassifications from investing to operating cash flows
Wholesale receivables (a) 1,235 2,010 46
Finance receivables (b) (57) (21) (62)
Reclassifications from investing to financing cash flows
Maturity of Financial Services sector debt held by Automotive sector (d) (201) — (454)
Elimination of investing activity to/(from) Financial Services in consolidation (925) (2,903) (2,455)
Consolidated net cash provided by/(used in) investing activities $ (14,290) $ (3,041) $ 6,908
Automotive net cash provided by/(used in) financing activities $ 40 $ (5,932) $ (10,476)
Financial Services net cash provided by/(used in) financing activities 2,539 (1,212) (15,554)
Total sector net cash provided by/(used in) financing activities 2,579 (7,144) (26,030)
Reclassifications from investing to financing cash flows
Maturity of Financial Services sector debt held by Automotive sector (d) 201 — 454
Elimination of investing activity to/(from) Financial Services in consolidation 925 2,903 2,455
Reclassifications from operating to financing cash flows
Payments on notes to the UAW VEBA Trust (c) — — (1,300)
Consolidated net cash provided by/(used in) financing activities $ 3,705 $ (4,241) $ (24,421)
__________
(a) In addition to the cash flow from vehicles sold by us, the cash flow from wholesale finance receivables (being reclassified from investing to
operating) includes dealer financing by Ford Credit of used and non-Ford vehicles. One hundred percent of cash flows from these wholesale
finance receivables have been reclassified for consolidated presentation as the portion of these cash flows from used and non-Ford vehicles is
impracticable to separate.
(b) Includes cash flows of finance receivables purchased/collected by the Financial Services sector from certain divisions and subsidiaries of the
Automotive sector.
(c) Cash outflows related to this transaction are reported as financing activities on the consolidated statement of cash flows and operating activities on
the sector statement of cash flows.
(d) Cash inflows related to these transactions are reported as financing activities on the consolidated statement of cash flows and investing activities
on the sector statement of cash flows.

Ford Motor Company | 2012 Annual Report 75
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
75
NOTE 1. PRESENTATION (Continued)
Certain Transactions Between Automotive and Financial Services Sectors
Intersector transactions occur in the ordinary course of business. Additional detail regarding certain transactions and
the effect on each sector’s balance sheet was as follows (in billions):
December 31, 2012 December 31, 2011
Automotive
Financial
Services Automotive
Financial
Services
Finance receivables, net (a) $ 4.8 $ 3.7
Unearned interest supplements and residual support (b) (2.6) (2.6)
Wholesale receivables/Other (c) 0.8 0.7
Net investment in operating leases (d) 0.5 0.4
Intersector receivables/(payables) (e) $ (0.3) 0.3 $ 0.9 (0.9)
__________
(a) Automotive sector receivables (generated primarily from vehicle and parts sales to third parties) sold to Ford Credit. These receivables are
classified as Other receivables, net on our consolidated balance sheet and Finance receivables, net on our sector balance sheet.
(b) We pay amounts to Ford Credit at the point of retail financing or lease origination that represent interest supplements and residual value support.
(c) Primarily wholesale receivables with entities that are consolidated subsidiaries of Ford.
(d) Sale-leaseback agreement between Automotive and Financial Services sectors relating to vehicles that we lease to our employees.
(e) Amounts owed to the Financial Services sector by Automotive sector, or vice versa.
Venezuelan Operations
At December 31, 2012 and 2011, we had $620 million and $301 million, respectively, in net monetary assets (primarily
cash and receivables partially offset by payables and accrued liabilities) denominated in Venezuelan bolivars. These net
monetary assets included $721 million and $331 million in cash and cash equivalents at December 31, 2012 and 2011,
respectively. We used the official exchange rate at December 31, 2012 of 4.3 bolivars to the U.S. dollar to re-measure the
assets and liabilities of our Venezuelan operations for GAAP financial statement presentation. On February 8, 2013, the
Venezuelan government announced a devaluation of the bolivar to an exchange rate of 6.3 bolivars to the U.S. dollar.
Had the devaluation occurred on December 31, 2012, we would have recorded a translation loss of approximately
$200 million in our year-end financial statements. Our ability to obtain funds at the official exchange rate has been limited.
Continuing restrictions on the foreign currency exchange market could affect our Venezuelan operations’ ability to pay
obligations denominated in U.S. dollars as well as our ability to benefit from those operations.
For more information visit www.annualreport.ford.com

76 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
76
NOTE 2. SUMMARY OF ACCOUNTING POLICIES
For each accounting topic that is addressed in its own footnote, the description of the accounting policy may be found
in the related footnote. The remaining accounting policies are described below.
Use of Estimates
The preparation of financial statements requires us to make estimates and assumptions that affect our results during
the periods reported. Estimates are used to account for certain items such as marketing accruals, warranty costs,
employee benefit programs, etc. Estimates are based on assumptions that we believe are reasonable under the
circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.
Foreign Currency Translation
The assets and liabilities of foreign subsidiaries using the local currency as their functional currency are translated to
U.S. dollars using end-of-period exchange rates and any resulting translation adjustments are reported in Other
comprehensive income/(loss). Upon sale or upon complete or substantially complete liquidation of an investment in a
foreign subsidiary, the accumulated amount of translation adjustments related to that entity is reclassified to net income as
part of the recognized gain or loss on the investment.
Gains or losses arising from transactions denominated in currencies other than the affiliate’s functional currency, the
effect of remeasuring assets and liabilities of foreign subsidiaries using U.S. dollars as their functional currency, and the
results of our foreign currency hedging activities are reported in Automotive cost of sales and Selling, administrative, and
other expenses. The pre-tax gain/(loss) of this activity for 2012, 2011, and 2010 was $(426) million, $4 million, and
$56 million, respectively.
Trade Receivables
Trade receivables, recorded on our consolidated balance sheet in Other receivables, net, consist primarily of
Automotive sector receivables for vehicles, parts, and accessories. Trade receivables initially are recorded at the
transaction amount. We record an allowance for doubtful accounts representing our estimate of the probable losses
inherent in trade receivables. At every reporting period, we assess the adequacy of our allowance for doubtful accounts
taking into consideration recoveries received during that period. Additions to the allowance for doubtful accounts are
made by recording charges to bad debt expense reported in Automotive cost of sales. Receivables are charged to the
allowance for doubtful accounts when an account is deemed to be uncollectible.
Revenue Recognition — Automotive Sector
Automotive revenue is generated primarily by sales of vehicles, parts and accessories. Revenue is recorded when all
risks and rewards of ownership are transferred to our customers (generally dealers and distributors). For the majority of
our sales, this occurs when products are shipped from our manufacturing facilities. When vehicles are shipped to
customers or vehicle modifiers on consignment, revenue is recognized when the vehicle is sold to the ultimate
customer. When we give our dealers the right to return eligible parts for credit, we reduce the related revenue for
expected returns.
We sell vehicles to daily rental car companies subject to guaranteed repurchase options. These vehicles are
accounted for as operating leases. At the time of sale, the proceeds are recorded as deferred revenue in Accrued
liabilities and deferred revenue. The difference between the proceeds and the guaranteed repurchase amount is
recognized in Automotive revenues over an average term of eight months, using a straight-line method. The cost of the
vehicles is recorded in Net investment in operating leases and the difference between the cost of the vehicle and the
estimated auction value is depreciated in Automotive cost of sales over the term of the lease. Proceeds from the sale of
the vehicle at auction are recognized in Automotive revenues at the time of sale. At December 31, 2012 and 2011, we
recorded $1.5 billion and $1.5 billion as deferred revenue, respectively.

Ford Motor Company | 2012 Annual Report 77
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
77
NOTE 2. SUMMARY OF ACCOUNTING POLICIES (Continued)
Revenue Recognition — Financial Services Sector
Financial Services revenue is generated primarily from interest on finance receivables (including direct financing
leases) and is recognized using the interest method. Certain origination costs on receivables are deferred and amortized
over the term of the related receivable as a reduction to revenue. Revenue from rental payments received on operating
leases is recognized on a straight-line basis over the term of the lease. Initial direct costs related to leases are deferred
and amortized over the term of the lease as a reduction to revenue. The accrual of interest on finance receivables and
revenue on operating leases is discontinued at the earlier of the time a receivable or account is determined to be
uncollectible, at bankruptcy status notification, or greater than 120 days past due.
Retail and Lease Incentives
We offer special retail financing and lease incentives to dealers’ customers who choose to finance or lease Ford-
brand vehicles from Ford Credit. Generally, the estimated cost for these incentives is recorded as a revenue reduction to
Automotive revenues when the vehicle is sold to the dealer. In order to compensate Ford Credit for the lower interest or
lease rates offered to the retail customer, we pay the discounted value of the incentive directly to Ford Credit when it
originates the retail finance or lease contract with the dealer’s customer. The Financial Services sector recognized
revenue of $2.4 billion, $2.8 billion, and $3.2 billion in 2012, 2011, and 2010, respectively, for the special financing and
leasing programs consistent with the earnings process of the underlying receivable or operating lease.
Sales and Marketing Incentives
Sales and marketing incentives generally are recognized by the Automotive sector as revenue reductions in
Automotive revenues. The incentives take the form of cash payments to dealers and dealers’ customers. The reduction
to revenue is accrued at the later of the date the related vehicle is sold or the date the incentive program is both approved
and communicated. We generally estimate these accruals using incentive programs that are approved as of the balance
sheet date and are expected to be effective at the beginning of the subsequent period.
Supplier Price Adjustments

We frequently negotiate price adjustments with our suppliers throughout a production cycle, even after receiving
production material. These price adjustments relate to changes in design specifications or other commercial terms such
as economics, productivity, and competitive pricing. We recognize price adjustments when we reach final agreement with
our suppliers. In general, we avoid direct price changes in consideration of future business; however, when these occur,
our policy is to defer the financial statement impact of any such price change given explicitly in consideration of future
business where guaranteed volumes are specified.
Raw Material Arrangements
We may, at times, negotiate prices for and facilitate the purchase of raw materials on behalf of our suppliers. These
raw material arrangements, which take place independently of any purchase orders being issued to our suppliers, are
negotiated at arms’ length and do not involve volume guarantees. When we pass the risks and rewards of ownership to
our suppliers, including inventory risk, market price risk, and credit risk for the raw material, we record both the cost of the
raw material and the income from the subsequent sale to the supplier in Automotive cost of sales.
Government Grants and Loan Incentives
We receive incentives from U.S. and non-U.S. governments in the form of tax rebates or credits, loans, and
grants. Incentives are recorded in the financial statements in accordance with their purpose, either as a reduction of
expense or a reduction of the cost of the capital investment. A premium or a discount is calculated on low-interest or
interest-free loans if the stated rate differs from the market rate, unless the governmental authority imposes specific
restrictions on the use of the loan proceeds. The benefit of these incentives generally is recorded when performance is
complete and all conditions as specified in the agreement are fulfilled.
For more information visit www.annualreport.ford.com

78 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
78
NOTE 2. SUMMARY OF ACCOUNTING POLICIES (Continued)
Bonus and Profit Sharing
We offer various types of bonus and profit sharing benefits to our employees. The timing for expense recognition
depends on the purpose of the bonus and whether the bonus is contingent on the employees’ future service. Our more
common bonus payments include:
• Ratification bonuses expensed in the period a labor agreement is ratified
• Operational performance bonuses and protection payments expensed equally over the period to payment
• Profit sharing payments accrued throughout the year in which the payment is earned. Each quarter, we
evaluate and adjust the year-to-date accrual to ensure it is consistent with the bonus formula
We record bonus and profit sharing expenses in Automotive cost of sales or Selling, administrative, and other
expenses.
Selected Other Costs
Freight, engineering, and research and development costs are included in Automotive cost of sales; advertising costs
are included in Selling, administrative, and other expenses. Freight costs on goods shipped are expensed at the earlier of
revenue recognition or as incurred. Advertising costs are expensed as incurred. Engineering, research, and development
costs are expensed as incurred when performed internally or when performed by a supplier if we guarantee
reimbursement. Engineering, research, development, and advertising expenses for the years ended December 31 were
as follows (in billions):
2012 2011 2010
Engineering, research, and development $ 5.5 $ 5.3 $ 5.0
Advertising 4.0 4.1 3.9
Presentation of Sales and Sales-Related Taxes
We collect and remit taxes assessed by different governmental authorities that are both imposed on and concurrent
with a revenue-producing transaction between us and our customers. These taxes may include, but are not limited to,
sales, use, value-added, and some excise taxes. We report the collection of these taxes on a net basis (excluded from
revenues).
NOTE 3. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED
Balance Sheet – Offsetting. In December 2011, the Financial Accounting Standards Board (“FASB”) issued a new
accounting standard that requires disclosures about offsetting and related arrangements for recognized financial
instruments and derivative instruments. The new accounting standard is effective for us as of January 1, 2013.
Intangibles – Goodwill and Other. In July 2012, the FASB issued a new accounting standard that provides the option
to evaluate qualitative factors to determine whether a calculated impairment test for indefinite-lived intangible assets is
necessary. The new accounting standard is effective for us as of January 1, 2013.

Ford Motor Company | 2012 Annual Report 79
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
79
NOTE 4. FAIR VALUE MEASUREMENTS
Cash equivalents, marketable securities, and derivative financial instruments are presented in our financial statements
on a recurring basis at fair value, while other assets and liabilities are measured at fair value on a nonrecurring basis,
such as when we have an asset impairment.
Fair Value Measurements
In measuring fair value, we use various valuation methodologies and prioritize the use of observable inputs. The use
of observable and unobservable inputs and their significance in measuring fair value are reflected in our fair value
hierarchy assessment.
• Level 1 – inputs include quoted prices for identical instruments and are the most observable
• Level 2 – inputs include quoted prices for similar instruments and observable inputs such as interest rates,
currency exchange rates, and yield curves
• Level 3 – inputs include data not observable in the market and reflect management judgment about the
assumptions market participants would use in pricing the instruments
We review the inputs to the fair value measurements to ensure they are appropriately categorized within the fair value
hierarchy. Transfers into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of
the reporting period.
Valuation Methodologies
Cash and Cash Equivalents. Included in Cash and cash equivalents are highly liquid investments that are readily
convertible to known amounts of cash, and which are subject to an insignificant risk of change in value due to interest
rate, quoted price, or penalty on withdrawal. A debt security is classified as a cash equivalent if it meets these criteria and
if it has a remaining time to maturity of 90 days or less from the date of acquisition. Amounts on deposit and available
upon demand, or negotiated to provide for daily liquidity without penalty, are classified as Cash and cash equivalents.
Time deposits, certificates of deposit, and money market accounts that meet the above criteria are reported at par value
on our balance sheet and are excluded from the tables below.
Marketable Securities. Investments in securities with a maturity date greater than 90 days at the date of purchase
and other securities for which there is more than an insignificant risk of change in value due to interest rate, quoted price,
or penalty on withdrawal are classified as Marketable securities. We generally measure fair value using prices obtained
from pricing services. Pricing methodologies and inputs to valuation models used by the pricing services depend on the
security type (i.e., asset class). Where possible, fair values are generated using market inputs including quoted prices
(the closing price in an exchange market), bid prices (the price at which a buyer stands ready to purchase), and other
market information. For fixed income securities that are not actively traded, the pricing services use alternative methods
to determine fair value for the securities, including: quotes for similar fixed-income securities, matrix pricing, discounted
cash flow using benchmark curves, or other factors to determine fair value. In certain cases, when market data are not
available, we may use broker quotes to determine fair value.
A review is performed on the security prices received from our pricing services, which includes discussion and
analysis of the inputs used by the pricing services to value our securities. We also compare the price of certain securities
sold close to the quarter-end to the price of the same security at the balance sheet date to ensure the reported fair value
is reasonable.
For more information visit www.annualreport.ford.com

80 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
80
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Derivative Financial Instruments. Our derivatives are over-the-counter customized derivative transactions and are not
exchange traded. We estimate the fair value of these instruments using industry-standard valuation models such as a
discounted cash flow. These models project future cash flows and discount the future amounts 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 interbank deposit rate (e.g., LIBOR) 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 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. In certain cases,
market data are not available and we use broker quotes and models (e.g., Black Scholes) to determine fair value. This
includes situations where there is illiquidity for a particular currency or commodity or for longer-dated instruments.
Ford Credit’s two Ford Upgrade Exchange Linked securitization transactions (“FUEL Notes”) had derivative features
that included a mandatory exchange to Ford Credit unsecured notes when Ford Credit’s senior unsecured debt received
two investment grade credit ratings among Fitch, Moody’s, and S&P, and a make-whole provision. Ford Credit estimated
the fair value of these features by comparing the fair value of the FUEL Notes to the value of a hypothetical debt
instrument without these features. In the second quarter of 2012, Ford Credit received two investment grade credit
ratings, thereby triggering the mandatory exchange feature and the FUEL Notes derivatives were extinguished.
Finance Receivables. We measure finance receivables at fair value for purposes of disclosure (see Note 7) using
internal valuation models. These models project future cash flows of financing contracts based on scheduled contract
payments (including principal and interest). The projected cash flows are discounted to present value based on
assumptions regarding credit losses, pre-payment speed, and applicable spreads to approximate current rates. Our
assumptions regarding pre-payment speed and credit losses are based on historical performance. The fair value of
finance receivables is categorized within Level 3 of the hierarchy.
On a nonrecurring basis, when retail contracts are greater than 120 days past due or deemed to be uncollectible, or if
individual dealer loans are probable of foreclosure, we use the fair value of collateral, adjusted for estimated costs to sell,
to determine the fair value adjustment to our receivables. The collateral for retail receivables is the vehicle financed, and
for dealer loans is real estate or other property.
The fair value measurements for retail receivables are based on the number of contracts multiplied by the loss
severity and the probability of default (“POD”) percentage, or the outstanding receivable balances multiplied by the
average recovery value (“ARV”) percentage to determine the fair value adjustment.
The fair value measurements for dealer loans are based on an assessment of the estimated fair value of collateral.
The assessment is performed by reviewing various appraisals, which include total adjusted appraised value of land and
improvements, alternate use appraised value, broker’s opinion of value, and purchase offers. The fair value adjustment is
determined by comparing the net carrying value of the dealer loan and the estimated fair value of collateral.
Debt. We measure debt at fair value for purposes of disclosure (see Note 17) using quoted prices for our own debt
with approximately the same remaining maturities, where possible. Where quoted prices are not available, we estimate
fair value using discounted cash flows and market-based expectations for interest rates, credit risk, and the contractual
terms of the debt instruments. For certain short-term debt with an original maturity date of one year or less, we assume
that book value is a reasonable approximation of the debt’s fair value. The fair value of debt is categorized within Level 2
of the hierarchy.

Ford Motor Company | 2012 Annual Report 81
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
81
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Input Hierarchy of Items Measured at Fair Value on a Recurring Basis
The following tables categorize the fair values of items measured at fair value on a recurring basis on our balance
sheet (in millions):
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Automotive Sector
Assets
Cash equivalents – financial instruments
U.S. government $ — $ — $ — $ — $ — $ — $ — $ —
U.S. government-sponsored enterprises — 718 — 718 — 319 — 319
Non-U.S. government — 139 — 139 — 168 — 168
Non-U.S. government agencies (a) — 365 — 365 — 820 — 820
Corporate debt — — — — — 2 — 2
Total cash equivalents – financial
instruments (b) — 1,222 — 1,222 — 1,309 — 1,309
Marketable securities (c)
U.S. government 4,493 — — 4,493 2,960 — — 2,960
U.S. government-sponsored enterprises — 5,459 — 5,459 — 4,852 — 4,852
Non-U.S. government agencies (a) — 4,794 — 4,794 — 4,558 — 4,558
Corporate debt — 1,871 — 1,871 — 1,631 — 1,631
Mortgage-backed and other asset-backed — 25 — 25 — 38 — 38
Equities 142 — — 142 129 — — 129
Non-U.S. government — 1,367 — 1,367 — 598 — 598
Other liquid investments (d) — 27 — 27 — 17 — 17
Total marketable securities 4,635 13,543 — 18,178 3,089 11,694 — 14,783
Derivative financial instruments
Foreign currency exchange contracts — 218 — 218 — 198 14 212
Commodity contracts — 19 4 23 — 1 1 2
Other – warrants — — — — — — 4 4
Total derivative financial instruments (e) — 237 4 241 — 199 19 218
Total assets at fair value $ 4,635 $ 15,002 $ 4 $ 19,641 $ 3,089 $ 13,202 $ 19 $ 16,310
Liabilities
Derivative financial instruments
Foreign currency exchange contracts $ — $ 486 $ — $ 486 $ — $ 442 $ 6 $ 448
Commodity contracts — 112 12 124 — 289 83 372
Total derivative financial instruments (e) — 598 12 610 — 731 89 820
Total liabilities at fair value $ — $ 598 $ 12 $ 610 $ — $ 731 $ 89 $ 820
__________
(a) Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions.
(b) Excludes time deposits, certificates of deposit, money market accounts, and other cash equivalents reported at par value on our balance sheet
totaling $3 billion and $4.6 billion at December 31, 2012 and 2011, respectively, for the Automotive sector. In addition to these cash equivalents,
our Automotive sector also had cash on hand totaling $2 billion and $2.1 billion at December 31, 2012 and 2011, respectively.
(c) Excludes an investment in Ford Credit debt securities held by the Automotive sector with a carrying value of $201 million and an estimated fair
value of $201 million at December 31, 2011. This investment matured in 2012.
(d) Includes certificates of deposit and time deposits subject to changes in value.
(e) See Note 18 for additional information regarding derivative financial instruments.
For more information visit www.annualreport.ford.com

82 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
82
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial Services Sector
Assets
Cash equivalents – financial instruments
U.S. government $ 200 $ — $ — $ 200 $ 1 $ — $ — $ 1
U.S. government-sponsored enterprises — 20 — 20 — 75 — 75
Non-U.S. government — 103 — 103 — 15 — 15
Non-U.S. government agencies (a) — — — — — 150 — 150
Corporate debt — 1 — 1 — — — —
Total cash equivalents – financial
instruments (b) 200 124 — 324 1 240 — 241
Marketable securities
U.S. government 620 — — 620 619 — — 619
U.S. government-sponsored enterprises — 12 — 12 — 713 — 713
Non-U.S. government agencies (a) — 95 — 95 — 778 — 778
Corporate debt — 1,155 — 1,155 — 1,186 — 1,186
Mortgage-backed and other asset-backed — 67 — 67 — 88 — 88
Non-U.S. government — 142 — 142 — 444 — 444
Other liquid investments (c) — 15 — 15 — 7 — 7
Total marketable securities 620 1,486 — 2,106 619 3,216 — 3,835
Derivative financial instruments
Interest rate contracts — 1,291 — 1,291 — 1,196 — 1,196
Foreign currency exchange contracts — 9 — 9 — 30 — 30
Cross-currency interest rate swap contracts — — — — — 12 — 12
Other (d) — — — — — — 137 137
Total derivative financial instruments (e) — 1,300 — 1,300 — 1,238 137 1,375
Total assets at fair value $ 820 $ 2,910 $ — $ 3,730 $ 620 $ 4,694 $ 137 $ 5,451
Liabilities
Derivative financial instruments
Interest rate contracts $ — $ 256 $ — $ 256 $ — $ 237 $ — $ 237
Foreign currency exchange contracts — 8 — 8 — 50 — 50
Cross-currency interest rate swap contracts — 117 — 117 — 12 — 12
Total derivative financial instruments (e) — 381 — 381 — 299 — 299
Total liabilities at fair value $ — $ 381 $ — $ 381 $ — $ 299 $ — $ 299
__________
(a) Includes notes issued by non-U.S. government agencies, as well as notes issued by supranational institutions.
(b) Excludes time deposits, certificates of deposit, and money market accounts reported at par value on our balance sheet totaling $6.5 billion and
$6 billion at December 31, 2012 and 2011, respectively. In addition to these cash equivalents, we also had cash on hand totaling $2.6 billion and
$3 billion at December 31, 2012 and 2011, respectively.
(c) Includes certificates of deposit and time deposits subject to changes in value.
(d) Represents derivative features included in the FUEL Notes.
(e) See Note 18 for additional information regarding derivative financial instruments.

Ford Motor Company | 2012 Annual Report 83
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
83
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Reconciliation of Changes in Level 3 Balances
The following table summarizes the changes recorded through income in Level 3 items measured at fair value on a
recurring basis and reported on our balance sheet for the years ended December 31 (in millions):
2012 2011

Marketable
Securities
Derivative
Financial
Instruments,
Net
Total Level 3
Fair Value
Marketable
Securities
Derivative
Financial
Instruments,
Net
Total Level 3
Fair Value
Automotive Sector
Beginning balance $ — $ (70) $ (70) $ 2 $ 38 $ 40
Realized/unrealized gains/(losses)
Cost of sales — 11 11 — (99) (99)
Interest income and other income/(loss), net — (4) (4) (1) (1) (2)
Other comprehensive income/(loss) (a) — — — — — —
Total realized/unrealized gains/(losses) — 7 7 (1) (100) (101)
Purchases, issues, sales, and settlements
Purchases — — — 7 — 7
Issues — — — — — —
Sales — — — (1) — (1)
Settlements — 65 65 — (14) (14)
Total purchases, issues, sales, and settlements — 65 65 6 (14) (8)
Transfers into Level 3 — — — — — —
Transfers out of Level 3 (b) — (10) (10) (7) 6 (1)
Ending balance $ — $ (8) $ (8) $ — $ (70) $ (70)
Unrealized gains/(losses) on instruments still held $ — $ 9 $ 9 $ — $ (69) $ (69)
Financial Services Sector
Beginning balance $ — $ 137 $ 137 $ 1 $ (89) $ (88)
Realized/unrealized gains/(losses)
Other income/(loss), net — (81) (81) — 382 382
Other comprehensive income/(loss) (a) — — — — (1) (1)
Interest income/(expense) (c) — — — — 90 90
Total realized/unrealized gains/(losses) — (81) (81) — 471 471
Purchases, issues, sales, and settlements
Purchases — — — 5 — 5
Issues (d) — — — — 73 73
Sales — — — — — —
Settlements (e) — (56) (56) — 114 114
Total purchases, issues, sales, and settlements — (56) (56) 5 187 192
Transfers into Level 3 — — — — — —
Transfers out of Level 3 (b) — — — (6) (432) (438)
Ending balance $ — $ — $ — $ — $ 137 $ 137
Unrealized gains/(losses) on instruments still held $ — $ — $ — $ — $ 65 $ 65
_________
(a) Represents foreign currency translation on derivative asset and liability balances held by non-U.S. dollar foreign affiliates.
(b) The transfer out of Level 3 of $432 million in 2011 was primarily the result of management’s validation of the observable data and determination that
certain unobservable inputs had an insignificant impact on the valuation of these instruments. The remaining transfers were due to the increase in
availability of observable data.
(c) Recorded in Interest expense.
(d) Represents derivative features included in the FUEL Notes.
(e) Reflects exchange of the FUEL Notes to unsecured notes.
For more information visit www.annualreport.ford.com

84 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
84
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Input Hierarchy of Items Measured at Fair Value on a Nonrecurring Basis
The following table summarizes the items measured at fair value subsequent to initial recognition on a nonrecurring
basis by input hierarchy at December 31 that were still held on our balance sheet at those dates (in millions):
December 31, 2012 December 31, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial Services Sector
North America
Retail receivables $ — $ — $ 52 $ 52 $ — $ — $ 70 $ 70
Dealer loans — — 2 2 — — 6 6
Total North America — — 54 54 — — 76 76
International
Retail receivables — — 26 26 — — 39 39
Total International — — 26 26 — — 39 39
Total Financial Services sector $ — $ — $ 80 $ 80 $ — $ — $ 115 $ 115
Nonrecurring Fair Value Changes
The following table summarizes the total change in value of items for which a nonrecurring fair value adjustment has
been included in our income statement for the years ended December 31, related to items still held on our balance sheet
at those dates (in millions):
Total Gains/(Losses)
2012 2011 2010
Financial Services Sector
North America
Retail receivables $ (13) $ (23) $ (29)
Dealer loans (1) — (3)
Total North America (14) (23) (32)
International
Retail receivables (11) (14) (25)
Total International (11) (14) (25)
Total Financial Services sector $ (25) $ (37) $ (57)
Fair value changes related to retail and dealer loan finance receivables that have been written down based on the fair
value of collateral adjusted for estimated costs to sell are recorded in Financial Services provision for credit and insurance
losses.

Ford Motor Company | 2012 Annual Report 85
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
85
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Information About Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
The following table summarizes significant unobservable inputs and the variability of those inputs to alternate
methodologies for the year ended December 31, 2012 (in millions):
Fair Value
Valuation
Technique
Unobservable
Input
Fair Value
Range
Automotive Sector
Recurring basis
Net commodity contracts $(8) Income
Approach
Forward commodity
prices for certain
commodity types. A
lower forward price
will result in a lower
fair value.
$(7) – $(8)
Financial Services Sector
Nonrecurring basis
Retail receivables
North America $52 Income
Approach
POD percentage $38 – $52
International $26 Income
Approach
ARV percentage $25 – $27
Dealer loans $2 Income
Approach
Estimated fair value $1 – $3
NOTE 5. RESTRICTED CASH
Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual
agreements are recorded in Other assets on our balance sheet.
Our Automotive sector restricted cash balances primarily include cash collateral required to be held against loans from
the European Investment Bank (“EIB”). Additionally, restricted cash includes various escrow agreements related to legal,
insurance, customs, and environmental matters. Our Financial Services sector restricted cash balances primarily include
cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of
certain contractual agreements.
Restricted cash does not include required minimum balances or cash securing debt issued through securitization
transactions.
Restricted cash balances were as follows (in millions):

December 31,
2012
December 31,
2011
Automotive sector $ 172 $ 330
Financial Services sector 172 149
Total Company $ 344 $ 479
For more information visit www.annualreport.ford.com

86 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
86
NOTE 6. MARKETABLE AND OTHER SECURITIES
We hold various investments classified as marketable securities, including U.S. government and non-U.S.
government securities, securities issued by non-U.S. government agencies, corporate obligations and equities, and asset-
backed securities.
We record marketable securities at fair value. Realized and unrealized gains and losses and interest income are
recorded in Automotive interest income and other income/(expense), net and Financial Services other income/(loss), net.
Realized gains and losses are measured using the specific identification method.
Investments in Marketable Securities
Investments in marketable securities were as follows (in millions):
December 31, 2012 December 31, 2011
Fair Value
Unrealized
Gains/
(Losses) (a) Fair Value
Unrealized
Gains/
(Losses) (a)
Automotive sector $ 18,178 $ 52 $ 14,984 $ (93)
Financial Services sector 2,106 6 3,835 (9)
Intersector elimination (b) — — (201) —
Total Company $ 20,284 $ 58 $ 18,618 $ (102)
__________
(a) Unrealized gains/(losses) for period related to instruments still held.
(b) “Fair Value” reflects an investment in Ford Credit debt securities shown at a carrying value of $201 million (estimated fair value of which was
$201 million) at December 31, 2011. This investment matured in 2012.
Other Securities
Investments in entities that we do not control and over which we do not have the ability to exercise significant
influence are recorded at cost and included in Other assets. These cost method investments were as follows (in millions):

December 31,
2012
December 31,
2011
Automotive sector $ 21 $ 21
Financial Services sector 5 5
Total Company $ 26 $ 26

Ford Motor Company | 2012 Annual Report 87
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
87
NOTE 7. FINANCE RECEIVABLES
Finance receivable balances were as follows (in millions):
December 31,
2012
December 31,
2011
Automotive sector (a) $ 519 $ 355
Financial Services sector 75,770 73,330
Reclassification of receivables purchased by Financial Services sector from Automotive sector to Other
receivables, net (4,779) (3,709)
Finance receivables, net $ 71,510 $ 69,976
__________
(a) Finance receivables are reported on our sector balance sheet in Receivables, less allowances and Other assets.
Automotive Sector
Our Automotive sector notes receivable consist primarily of amounts loaned to our unconsolidated affiliates.
Performance of this group of receivables is evaluated based on payment activity and the financial stability of the
debtor. Notes receivable initially are recorded at fair value and subsequently measured at amortized cost.
Notes receivable, net were as follows (in millions):

December 31,
2012
December 31,
2011
Notes receivable $ 542 $ 384
Less: Allowance for credit losses (23) (29)
Notes receivable, net $ 519 $ 355
Financial Services Sector
Our Financial Services sector finance receivables primarily relate to Ford Credit, but also include the Other
Financial Services segment and certain intersector eliminations.
Our Financial Services sector segments the North America and International portfolio of finance receivables into
“consumer” and “non-consumer” receivables. The receivables are secured by the vehicles, inventory, or other property
being financed.
Consumer Segment. Receivables in this portfolio segment include products offered to individuals and businesses
that finance the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing
includes retail installment contracts for new and used vehicles and direct financing leases with retail customers,
government entities, daily rental companies, and fleet customers.
Non-Consumer Segment. Receivables in this portfolio segment include products offered to automotive
dealers. The products include:
• Dealer financing – wholesale loans to dealers to finance the purchase of vehicle inventory, also known as
floorplan financing, and loans to dealers to finance working capital and improvements to dealership facilities,
finance the purchase of dealership real estate, and other dealer vehicle program financing. Wholesale is
approximately 95% of our dealer financing
• Other financing – purchased receivables primarily related to the sale of parts and accessories to dealers
Finance receivables are recorded at the time of origination or purchase for the principal amount financed and are
subsequently reported at amortized cost, net of any allowance for credit losses. Amortized cost is the outstanding
principal adjusted for any charge-offs, unamortized deferred fees or costs, and unearned interest supplements.
For more information visit www.annualreport.ford.com

88 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
88
NOTE 7. FINANCE RECEIVABLES (Continued)
Finance receivables, net were as follows (in millions):
December 31, 2012 December 31, 2011

North
America International
Total
Finance
Receivables
North
America International
Total
Finance
Receivables
Consumer
Retail financing, gross $ 39,504 $ 10,460 $ 49,964 $ 38,410 $ 11,083 $ 49,493
Less: Unearned interest supplements (1,264) (287) (1,551) (1,407) (335) (1,742)
Consumer finance receivables $ 38,240 $ 10,173 $ 48,413 $ 37,003 $ 10,748 $ 47,751
Non-Consumer
Dealer financing $ 19,429 $ 7,242 $ 26,671 $ 16,501 $ 8,479 $ 24,980
Other 689 386 1,075 723 377 1,100
Non-Consumer finance receivables 20,118 7,628 27,746 17,224 8,856 26,080
Total recorded investment $ 58,358 $ 17,801 $ 76,159 $ 54,227 $ 19,604 $ 73,831
Recorded investment in finance receivables $ 58,358 $ 17,801 $ 76,159 $ 54,227 $ 19,604 $ 73,831
Less: Allowance for credit losses (309) (80) (389) (388) (113) (501)
Finance receivables, net $ 58,049 $ 17,721 $ 75,770 $ 53,839 $ 19,491 $ 73,330
Net finance receivables subject to fair value (a) $ 73,618 $ 70,754
Fair value 75,618 72,294
__________
(a) At December 31, 2012 and 2011, excludes $2.2 billion and $2.6 billion, respectively, of certain receivables (primarily direct financing leases)
that are not subject to fair value disclosure requirements. All finance receivables are categorized within Level 3 of the fair value hierarchy. See
Note 4 for additional information.
Excluded from Financial Services sector finance receivables at December 31, 2012 and 2011, was $183 million
and $180 million, respectively, of accrued uncollected interest receivable, which we report in Other assets on the
balance sheet.
Included in the recorded investment in finance receivables at December 31, 2012 and 2011 were North America
consumer receivables of $23 billion and $29.4 billion and non-consumer receivables of $17.1 billion and $14.2 billion,
respectively, and International consumer receivables of $6.6 billion and $7.1 billion and non-consumer receivables of
$4.5 billion and $5.6 billion, respectively, that secure certain debt obligations. The receivables are available only for
payment of the debt and other obligations issued or arising in securitization transactions; they are not available to pay
the other obligations of our Financial Services sector or the claims of our other creditors. We hold the right to receive
the excess cash flows not needed to pay the debt and other obligations issued or arising in securitization transactions
(see Notes 12 and 17).

Ford Motor Company | 2012 Annual Report 89
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
89
NOTE 7. FINANCE RECEIVABLES (Continued)
Contractual maturities of total finance receivables, excluding unearned interest supplements, outstanding at
December 31, 2012 reflect contractual repayments due from customers or borrowers as follows (in millions):
Due in Year Ending December 31,
2013 2014 2015 Thereafter Total
North America
Consumer
Retail financing, gross $ 11,599 $ 9,992 $ 8,096 $ 9,817 $ 39,504
Non-Consumer
Dealer financing 17,966 546 72 845 19,429
Other 685 2 1 1 689
Total North America $ 30,250 $ 10,540 $ 8,169 $ 10,663 $ 59,622
International
Consumer
Retail financing, gross $ 4,381 $ 3,096 $ 1,826 $ 1,157 $ 10,460
Non-Consumer
Dealer financing 6,464 717 58 3 7,242
Other 386 — — — 386
Total International $ 11,231 $ 3,813 $ 1,884 $ 1,160 $ 18,088
Our finance receivables are pre-payable without penalty, so prepayments may cause actual maturities to differ
from contractual maturities. The above table, therefore, is not to be regarded as a forecast of future cash collections.
For wholesale receivables, which are included in dealer financing, maturities stated above are estimated based on
historical trends, as maturities on outstanding amounts are scheduled upon the sale of the underlying vehicle by the
dealer.
Investment in direct financing leases, which are included in consumer receivables, were as follows (in millions):
December 31, 2012 December 31, 2011
North
America International
Total Direct
Financing
Leases
North
America International
Total Direct
Financing
Leases
Total minimum lease rentals to be received $ 58 $ 1,466 $ 1,524 $ 4 $ 1,897 $ 1,901
Initial direct costs 1 16 17 — 18 18
Estimated residual values — 851 851 1 971 972
Less: Unearned income (7) (152) (159) (1) (203) (204)
Less: Unearned interest supplements — (82) (82) — (116) (116)
Recorded investment in direct financing
leases 52 2,099 2,151 4 2,567 2,571
Less: Allowance for credit losses (1) (8) (9) — (12) (12)
Net investment in direct financing
leases $ 51 $ 2,091 $ 2,142 $ 4 $ 2,555 $ 2,559
Future minimum rental payments due from direct financing leases at December 31, 2012 were as follows (in
millions):
2013 2014 2015 2016 Thereafter
North America $ 21 $ 12 $ 13 $ 9 $ 3
International 571 430 317 136 12
For more information visit www.annualreport.ford.com

90 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
90
NOTE 7. FINANCE RECEIVABLES (Continued)
Aging. For all classes of finance receivables, we define “past due” as any payment, including principal and
interest, that has not been collected and is at least 31 days past the contractual due date. Recorded investment of
consumer accounts greater than 90 days past due and still accruing interest was $13 million and $14 million at
December 31, 2012 and 2011, respectively. The recorded investment of non-consumer accounts greater than 90 days
past due and still accruing interest was $5 million and de minimis at December 31, 2012 and 2011, respectively.
The aging analysis of our Financial Services sector finance receivables balances at December 31 were as follows
(in millions):
2012 2011
North America International Total North America International Total
Consumer
31-60 days past due $ 783 $ 50 $ 833 $ 732 $ 64 $ 796
61-90 days past due 97 18 115 68 28 96
91-120 days past due 21 9 30 22 12 34
Greater than 120 days past due 52 29 81 70 43 113
Total past due 953 106 1,059 892 147 1,039
Current 37,287 10,067 47,354 36,111 10,601 46,712
Consumer finance receivables $ 38,240 $ 10,173 $ 48,413 $ 37,003 $ 10,748 $ 47,751
Non-Consumer
Total past due $ 29 $ 11 $ 40 $ 30 $ 9 $ 39
Current 20,089 7,617 27,706 17,194 8,847 26,041
Non-Consumer finance receivables 20,118 7,628 27,746 17,224 8,856 26,080
Total recorded investment $ 58,358 $ 17,801 $ 76,159 $ 54,227 $ 19,604 $ 73,831
Consumer Credit Quality. When originating all classes of consumer receivables, we use a proprietary scoring
system that measures the credit quality of the receivables using several factors, such as credit bureau information,
consumer credit risk scores (e.g., FICO score), and contract characteristics. In addition to our proprietary scoring
system, we consider other individual consumer factors, such as employment history, financial stability, and capacity to
pay.

Subsequent to origination, we review the credit quality of retail and direct financing lease receivables based on
customer payment activity. As each customer develops a payment history, we use an internally-developed behavioral
scoring model to assist in determining the best collection strategies. Based on data from this scoring model, contracts
are categorized by collection risk. Our collection models evaluate several factors, including origination characteristics,
updated credit bureau data, and payment patterns. These models allow for more focused collection activity on higher-
risk accounts and are used to refine our risk-based staffing model to ensure collection resources are aligned with
portfolio risk.
Credit quality ratings for our consumer receivables are based on aging (as described in the aging table above).
Consumer receivables credit quality ratings are as follows:
• Pass – current to 60 days past due
• Special Mention – 61 to 120 days past due and in intensified collection status
• Substandard – greater than 120 days past due and for which the uncollectible portion of the receivables has
already been charged-off, as measured using the fair value of collateral

Ford Motor Company | 2012 Annual Report 91
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
91
NOTE 7. FINANCE RECEIVABLES (Continued)
Non-Consumer Credit Quality. We extend credit to dealers primarily in the form of lines of credit to purchase new
Ford and Lincoln vehicles as well as used vehicles. Each non-consumer lending request is evaluated by taking into
consideration the borrower’s financial condition and the underlying collateral securing the loan. We use a proprietary
model to assign each dealer a risk rating. This model uses historical performance data to identify key factors about a
dealer that we consider significant in predicting a dealer’s ability to meet its financial obligations. We also consider
numerous other financial and qualitative factors including capitalization and leverage, liquidity and cash flow,
profitability, and credit history with ourselves and other creditors. A dealer’s risk rating does not reflect any guarantees
or a dealer owner’s net worth.
Dealers are assigned to one of four groups according to their risk rating as follows:
• Group I – strong to superior financial metrics
• Group II – fair to favorable financial metrics
• Group III – marginal to weak financial metrics
• Group IV – poor financial metrics, including dealers classified as uncollectible
We suspend credit lines and extend no further funding to dealers classified in Group IV.
We regularly review our model to confirm the continued business significance and statistical predictability of the
factors and update the model to incorporate new factors or other information that improves its statistical predictability.
In addition, we verify the existence of the assets collateralizing the receivables by physical audits of vehicle
inventories, which are performed with increased frequency for higher-risk (i.e., Group III and Group IV) dealers. We
perform a credit review of each dealer at least annually and adjust the dealer’s risk rating, if necessary.
Performance of non-consumer receivables is evaluated based on our internal dealer risk rating analysis, as
payment for wholesale receivables generally is not required until the dealer has sold the vehicle. A dealer has the
same risk rating for all of its dealer financing regardless of the type of financing.
The credit quality analysis of our dealer financing receivables at December 31 were as follows (in millions):
2012 2011
North America International Total North America International Total
Dealer Financing
Group I $ 16,526 $ 4,551 $ 21,077 $ 13,506 $ 5,157 $ 18,663
Group II 2,608 1,405 4,013 2,654 1,975 4,629
Group III 277 1,279 1,556 331 1,337 1,668
Group IV 18 7 25 10 10 20
Total recorded investment $ 19,429 $ 7,242 $ 26,671 $ 16,501 $ 8,479 $ 24,980
For more information visit www.annualreport.ford.com

92 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
92
NOTE 7. FINANCE RECEIVABLES (Continued)
Impaired Receivables. Impaired consumer receivables include accounts that have been re-written or modified in
reorganization proceedings pursuant to the U.S. Bankruptcy Code that are considered to be Troubled Debt
Restructurings (“TDRs”), as well as all accounts greater than 120 days past due. Impaired non-consumer receivables
represent accounts with dealers that have weak or poor financial metrics or dealer financing that have been modified in
TDRs. The recorded investment of consumer receivables that were impaired at December 31, 2012 and 2011 was
$422 million or 0.9% of consumer receivables, and $382 million or 0.8% of consumer receivables, respectively. The
recorded investment of non-consumer receivables that were impaired at December 31, 2012 and 2011 was $47 million
or 0.2% of non-consumer receivables, and $64 million or 0.2% of the non-consumer receivables, respectively.
Impaired finance receivables are evaluated both collectively and specifically. See Note 9 for additional information
related to the development of our allowance for credit losses.
Non-Accrual Receivables. The accrual of revenue is discontinued at the earlier of the time a receivable is
determined to be uncollectible, at bankruptcy status notification, or greater than 120 days past due. Accounts may be
restored to accrual status only when a customer settles all past-due deficiency balances and future payments are
reasonably assured. For receivables in non-accrual status, subsequent financing revenue is recognized only to the
extent a payment is received. Payments generally are applied first to outstanding interest and then to the unpaid
principal balance.
The recorded investment of consumer receivables in non-accrual status was $304 million or 0.6% of our consumer
receivables, at December 31, 2012, and $402 million or 0.9% of our consumer receivables, at December 31, 2011.
The recorded investment of non-consumer receivables in non-accrual status was $29 million or 0.1% of our non-
consumer receivables, at December 31, 2012, and $27 million or 0.1% of our non-consumer receivables, at
December 31, 2011.
Troubled Debt Restructurings. A restructuring of debt constitutes a TDR if we grant a concession to a customer or
borrower for economic or legal reasons related to the debtor’s financial difficulties that we otherwise would not
consider. Consumer contracts that have a modified interest rate that is below the market rate and those modified in
reorganization proceedings pursuant to the U.S. Bankruptcy Code are considered to be TDRs. Non-consumer
receivables subject to forbearance, moratoriums, extension agreements, or other actions intended to minimize
economic loss and to avoid foreclosure or repossession of collateral are classified as TDRs. We do not grant
concessions on the principal balance of our loans. If a contract is modified in reorganization proceeding, all payment
requirements of the reorganization plan need to be met before remaining balances are forgiven. The outstanding
recorded investment at time of modification for consumer receivables that are considered to be TDRs were
$249 million or 0.5% and $370 million or 0.8% of our consumer receivables during the period ended
December 31, 2012 and 2011, respectively. The subsequent default rate of TDRs that were previously modified in
TDRs within the last twelve months and resulted in repossession for consumer contracts was 5.8% and 3.7% of TDRs
at December 31, 2012 and 2011, respectively. The outstanding recorded investment of non-consumer loans involved
in TDRs was de minimis during the years ended December 31, 2012 and 2011.
Finance receivables involved in TDRs are specifically assessed for impairment. An impairment charge is recorded
as part of the provision to the allowance for credit losses for the amount that the recorded investment of the receivable
exceeds its estimated fair value. Estimated fair value is based on either the present value of the expected future cash
flows of the receivable discounted at the loan’s original effective interest rate, or for loans where foreclosure is probable
the fair value of the collateral adjusted for estimated costs to sell. The allowance for credit losses related to consumer
TDRs was $19 million and $16 million at December 31, 2012 and 2011, respectively. The allowance for credit losses
related to non-consumer TDRs was de minimis during the years ended December 31, 2012 and 2011.

Ford Motor Company | 2012 Annual Report 93
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
93
NOTE 8. NET INVESTMENT IN OPERATING LEASES
Net investment in operating leases on our balance sheet consists primarily of lease contracts for vehicles with retail
customers, 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.
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.
Net Investment in Operating Leases
The net investment in operating leases was as follows (in millions):

December 31,
2012
December 31,
2011
Automotive Sector
Vehicles, net of depreciation $ 1,415 $ 1,356
Financial Services Sector
Vehicles and other equipment, at cost (a) 18,159 14,242
Accumulated depreciation (3,100) (2,720)
Allowance for credit losses (23) (40)
Total Financial Services sector 15,036 11,482
Total Company $ 16,451 $ 12,838
__________
(a) Includes Ford Credit’s operating lease assets of $6.3 billion and $6.4 billion at December 31, 2012 and 2011, respectively, for which the related
cash flows have been used to secure certain lease securitization transactions. Cash flows associated with the net investment in operating leases
are available only for payment of the debt or other obligations issued or arising in the securitization transactions; they are not available to pay other
obligations or the claims of other creditors.
Automotive Sector
Operating lease depreciation expense (which excludes gains and losses on disposal of assets) for the years ended
December 31 was as follows (in millions):
2012 2011 2010
Operating lease depreciation expense $ 53 $ 61 $ 297
Included in Automotive revenues are rents on operating leases. The amount contractually due for minimum rentals on
operating leases is $110 million for 2013.
Financial Services Sector
Operating lease depreciation expense (which includes gains and losses on disposal of assets) for the years ended
December 31 was as follows (in millions):
2012 2011 2010
Operating lease depreciation expense $ 2,488 $ 1,799 $ 1,977
Included in Financial Services revenues are rents on operating leases. The amounts contractually due for minimum
rentals on operating leases as of December 31, 2012 are as follows (in millions):
2013 2014 2015 2016 Thereafter Total
Minimum rentals on operating leases $ 1,754 $ 2,012 $ 1,037 $ 223 $ 66 $ 5,092
For more information visit www.annualreport.ford.com

94 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
94
NOTE 9. ALLOWANCE FOR CREDIT LOSSES
Automotive Sector
We estimate credit loss reserves for notes receivable on an individual receivable basis. A specific impairment
allowance reserve is established based on expected future cash flows, the fair value of any collateral, and the financial
condition of the debtor. Following is an analysis of the allowance for credit losses for the years ended December 31
(in millions):
2012 2011
Allowance for credit losses
Beginning balance $ 29 $ 120
Charge-offs (7) —
Recoveries (11) (85)
Provision for credit losses 6 2
Other 6 (8)
Ending balance $ 23 $ 29
Financial Services Sector
The allowance for credit losses represents our estimate of the probable loss on the collection of finance receivables
and operating leases as of the balance sheet date. The adequacy of the allowance for credit losses is assessed quarterly
and the assumptions and models used in establishing the allowance are evaluated regularly. Because credit losses may
vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain.
The majority of credit losses are attributable to Ford Credit’s consumer receivables segment.
Additions to the allowance for credit losses are made by recording charges to Provision for credit and insurance
losses on the sector income statement. The uncollectible portion of finance receivables and investments in operating
leases are charged to the allowance for credit losses at the earlier of when an account is deemed to be uncollectible or
when an account is 120 days delinquent, taking into consideration the financial condition of the customer, borrower, or
lessee, the value of the collateral, recourse to guarantors, and other factors. In the event we repossess the collateral, the
receivable is written off and we record the collateral at its estimated fair value less costs to sell and report it in Other
assets on the balance sheet. Recoveries on finance receivables and investment in operating leases previously charged-
off as uncollectible are credited to the allowance for credit losses.
Consumer
We estimate the allowance for credit losses on our consumer receivables and on our investments in operating leases
using a combination of measurement models and management judgment. The models consider factors such as historical
trends in credit losses and recoveries (including key metrics such as delinquencies, repossessions, and bankruptcies), the
composition of the present portfolio (including vehicle brand, term, risk evaluation, and new/used vehicles), trends in
historical and projected used vehicle values, and economic conditions. Estimates from these models rely on historical
information and may not fully reflect losses inherent in the present portfolio. Therefore, we may adjust the estimate to
reflect management judgment regarding justifiable changes in recent economic trends and conditions, portfolio
composition, and other relevant factors.
We make projections of two key assumptions to assist in estimating the consumer allowance for credit losses:
• Frequency – number of finance receivables and operating lease contracts that are expected to default over the
loss emergence period, measured as repossessions
• Loss severity – expected difference between the amount of money a customer owes when the finance contract is
charged off and the amount received, net of expenses from selling the repossessed vehicle, including any
recoveries from the customer

Ford Motor Company | 2012 Annual Report 95
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
95
NOTE 9. ALLOWANCE FOR CREDIT LOSSES (Continued)
Collective Allowance for Credit Losses. The collective allowance is evaluated primarily using a collective loss-to-
receivables (“LTR”) model that, based on historical experience, indicates credit losses have been incurred in the portfolio
even though the particular accounts that are uncollectible cannot be specifically identified. The LTR model is based on
the most recent years of history. Each LTR is calculated by dividing credit losses by average end-of-period receivables or
average end-of-period investment in operating leases, excluding unearned interest supplements and allowance for credit
losses. An average LTR is calculated for each class and multiplied by the end-of-period balances for that given class.
The loss emergence period (“LEP”) is a key assumption within our models and represents the average amount of time
between when a loss event first occurs and when it is charged off. This time period starts when the consumer begins to
experience financial difficulty. It is evidenced, typically through delinquency, before eventually resulting in a charge-off.
The LEP is a multiplier in the calculation of the collective consumer allowance for credit losses.
For accounts greater than 120 days past due, the uncollectible portion is charged-off such that the remaining recorded
investment is equal to the estimated fair value of the collateral less costs to sell.
Specific Allowance for Impaired Receivables. Consumer receivables involved in TDRs are specifically assessed for
impairment. A specific allowance is estimated based on the present value of the expected future cash flows of the
receivable discounted at the loan’s original effective interest rate or the fair value of any collateral adjusted for estimated
costs to sell.
After establishing the collective and specific allowance for credit losses, if management believes the allowance does
not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions, or other relevant
factors, an adjustment is made based on management judgment.
Non-Consumer
We estimate the allowance for credit losses for non-consumer receivables based on historical LTR ratios, expected
future cash flows, and the fair value of collateral.
Collective Allowance for Credit Losses. We estimate an allowance for non-consumer receivables that are not
specifically identified as impaired using a LTR model for each financing product based on historical experience. This LTR
is an average of the most recent historical experience and is calculated consistent with the consumer receivables LTR
approach. All accounts that are specifically identified as impaired are excluded from the calculation of the non-specific or
collective allowance.
Specific Allowance for Impaired Receivables. The dealer financing is evaluated by segmenting individual loans by the
risk characteristics of the loan (such as the amount of the loan, the nature of the collateral, and the financial status of the
debtor). The loans are analyzed to determine whether individual loans are impaired, and a specific allowance is
estimated based on the present value of the expected future cash flows of the receivable discounted at the loan’s original
effective interest rate or the fair value of the collateral adjusted for estimated costs to sell.
After establishment of the collective and the specific allowance for credit losses, if management believes the
allowance does not reflect all losses inherent in the portfolio due to changes in recent economic trends and conditions or
other relevant factors, an adjustment is made based on management judgment.
For more information visit www.annualreport.ford.com

96 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
96
NOTE 9. ALLOWANCE FOR CREDIT LOSSES (Continued)
Following is an analysis of the allowance for credit losses related to finance receivables and net investment in
operating leases for the years ended December 31 (in millions):
2012
Finance Receivables Net Investment
in
Operating
Leases

Consumer Non-Consumer Total
Total
Allowance
Allowance for credit losses
Beginning balance $ 457 $ 44 $ 501 $ 40 $ 541
Charge-offs (316) (8) (324) (47) (371)
Recoveries 171 12 183 49 232
Provision for credit losses 45 (19) 26 (19) 7
Other (a) 3 — 3 — 3
Ending balance $ 360 $ 29 $ 389 $ 23 $ 412
Analysis of ending balance of allowance for
credit losses
Collective impairment allowance $ 341 $ 27 $ 368 $ 23 $ 391
Specific impairment allowance 19 2 21 — 21
Ending balance $ 360 $ 29 $ 389 $ 23 $ 412
Analysis of ending balance of finance receivables
and net investment in operating leases
Collectively evaluated for impairment $ 47,991 $ 27,699 $ 75,690 $ 15,059
Specifically evaluated for impairment 422 47 469 —
Recorded investment (b) $ 48,413 $ 27,746 $ 76,159 $ 15,059
Ending balance, net of allowance for credit losses $ 48,053 $ 27,717 $ 75,770 $ 15,036
__________
(a) Represents amounts related to translation adjustments.
(b) Represents finance receivables and net investment in operating leases before allowance for credit losses.
2011
Finance Receivables Net Investment
in
Operating
Leases

Consumer Non-Consumer Total
Total
Allowance
Allowance for credit losses
Beginning balance $ 707 $ 70 $ 777 $ 87 $ 864
Charge-offs (405) (11) (416) (89) (505)
Recoveries 207 7 214 86 300
Provision for credit losses (51) (22) (73) (44) (117)
Other (a) (1) — (1) — (1)
Ending balance $ 457 $ 44 $ 501 $ 40 $ 541
Analysis of ending balance of allowance for
credit losses
Collective impairment allowance $ 441 $ 36 $ 477 $ 40 $ 517
Specific impairment allowance 16 8 24 — 24
Ending balance $ 457 $ 44 $ 501 $ 40 $ 541
Analysis of ending balance of finance receivables
and net investment in operating leases
Collectively evaluated for impairment $ 47,369 $ 26,016 $ 73,385 $ 11,522
Specifically evaluated for impairment 382 64 446 —
Recorded investment (b) $ 47,751 $ 26,080 $ 73,831 $ 11,522
Ending balance, net of allowance for credit losses $ 47,294 $ 26,036 $ 73,330 $ 11,482
__________
(a) Represents amounts related to translation adjustments.
(b) Represents finance receivables and net investment in operating leases before allowance for credit losses.

Ford Motor Company | 2012 Annual Report 97
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
97
NOTE 10. INVENTORIES
All inventories are stated at the lower of cost or market. Cost for a substantial portion of U.S. inventories is
determined on a last-in, first-out (“LIFO”) basis. LIFO was used for approximately 18% and 17% of total inventories at
December 31, 2012 and 2011, respectively. Cost of other inventories is determined by costing methods that approximate
a first-in, first-out (“FIFO”) basis.
Inventories were as follows (in millions):

December 31,
2012
December 31,
2011
Raw materials, work-in-process, and supplies $ 3,697 $ 2,847
Finished products 4,614 3,982
Total inventories under FIFO 8,311 6,829
Less: LIFO adjustment (949) (928)
Total inventories $ 7,362 $ 5,901
For more information visit www.annualreport.ford.com

98 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
98
NOTE 11. EQUITY IN NET ASSETS OF AFFILIATED COMPANIES
We use the equity method of accounting for our investments in entities over which we do not have control, but over
whose operating and financial policies we are able to exercise significant influence.
Ownership Percentages and Investment Balances
The following table reflects our ownership percentages and carrying value of equity method investments (in millions,
except percentages):

Ownership
Percentage Investment Balance
Automotive Sector
December 31,
2012
December 31,
2012
December 31,
2011
Changan Ford Automobile Corporation, Ltd (“CAF”) (a) 50.0% $ 990 $ —
Changan Ford Mazda Automobile Corporation, Ltd (“CFMA”) (a) — — 468
Jiangling Motors Corporation, Ltd 30.0 419 373
AutoAlliance International, Inc (“AAI”) (a) — — 372
Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”) 41.0 394 369
AutoAlliance (Thailand) Co., Ltd. 50.0 391 367
FordSollers Netherlands B.V. (“FordSollers”) (a) 50.0 407 361
Getrag Ford Transmissions GmbH (“GFT”) 50.0 242 229
Ford Romania S.A. (“Ford Romania”) (b) 100.0 63 92
Tenedora Nemak, S.A. de C.V. 6.8 73 68
Changan Ford Mazda Engine Company, Ltd. 25.0 50 33
DealerDirect LLC 97.7 25 18
OEConnection LLC 50.0 20 13
Percepta, LLC 45.0 9 7
Blue Diamond Truck, S. de R.L. de C.V. 25.0 11 7
Ford Performance Vehicles Pty Ltd. 49.0 5 6
Blue Diamond Parts, LLC 25.0 4 4
Automotive Fuel Cell Cooperation Corporation 30.0 5 4
Other Various 4 6
Total Automotive sector 3,112 2,797
Financial Services Sector
Forso Nordic AB 50.0 71 71
FFS Finance South Africa (Pty) Limited 50.0 39 43
RouteOne LLC 30.0 20 15
CNF-Administradora de Consorcio Nacional Ltda. 33.3 4 10
Total Financial Services sector 134 139
Total Company $ 3,246 $ 2,936
__________
(a) See Note 25 for additional information.
(b) Although we manage the day-to-day operations for Ford Romania, through December 31, 2012 the Romanian government contractually maintained
the ability to influence key decisions regarding the business, including implementation of the business plan, employment levels, and capital
expenditure and investment levels. As a result, we did not consolidate our investment in Ford Romania as of year-end 2012.
We received $610 million, $316 million, and $337 million of dividends from these affiliated companies for the years
ended December 31, 2012, 2011, and 2010, respectively.

Ford Motor Company | 2012 Annual Report 99
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
99
NOTE 12. VARIABLE INTEREST ENTITIES
A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional
subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A
VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most
significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits
from the entity that could potentially be significant to the VIE.
We have the power to direct the activities of an entity when our management has the ability to make key operating
decisions, such as decisions regarding capital or product investment or manufacturing production schedules. We have
the power to direct the activities of our special purpose entities when we have the ability to exercise discretion in the
servicing of financial assets, issue additional debt, exercise a unilateral call option, add assets to revolving structures, or
control investment decisions.

Assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to
satisfy claims against our general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not
represent additional claims on our general assets; rather, they represent claims against the specific assets of the
consolidated VIEs.

Automotive Sector
VIEs of Which We are Not the Primary Beneficiary
Getrag Ford Transmissions GmbH (“GFT”) is a joint venture that constitutes a significant VIE of which we are not the
primary beneficiary, and which was not consolidated as of December 31, 2012 or December 31, 2011. GFT is a 50/50
joint venture with Getrag Deutsche Venture GmbH and Co. KG. Ford and its related parties purchase substantially all of
the joint venture’s output. We do not, however, have the power to direct economically-significant activities of the joint
venture.
We also have suppliers that are VIEs of which we are not the primary beneficiary. Although we have provided certain
suppliers guarantees and other financial support, we do not have any key decision making power related to their
businesses.
Our maximum exposure to loss from VIEs of which we are not the primary beneficiary was as follows (in millions):

December 31,
2012
December 31,
2011
Change in
Maximum
Exposure
Investments $ 242 $ 229 $ 13
Guarantees and other supplier arrangements 5 6 (1)
Total maximum exposure $ 247 $ 235 $ 12
Financial Services Sector
VIEs of Which We are the Primary Beneficiary
Our Financial Services sector uses special purpose entities to issue asset-backed securities in transactions to public
and private investors, bank conduits, and government-sponsored entities or others who obtain funding from government
programs. We have deemed most of these special purpose entities to be VIEs. The asset-backed securities are secured
by finance receivables and interests in net investments in operating leases. The assets continue to be consolidated by
us. We retain interests in our securitization VIEs, including subordinated securities issued by the VIEs, rights to cash held
for the benefit of the securitization investors, and rights to the excess cash flows not needed to pay the debt and other
obligations issued or arising in the securitization transactions.
The transactions create and pass along risks to the variable interest holders, depending on the assets securing the
debt and the specific terms of the transactions. We aggregate and analyze the asset-backed securitization transactions
based on the risk profile of the product and the type of funding structure, including:
• Retail – consumer credit risk and pre-payment risk
• Wholesale – dealer credit risk
• Net investments in operating lease – vehicle residual value risk, consumer credit risk, and pre-payment risk
For more information visit www.annualreport.ford.com

100 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
100
NOTE 12. VARIABLE INTEREST ENTITIES (Continued)
As a residual interest holder, we are exposed to the underlying residual and credit risk of the collateral, and are
exposed to interest rate risk in some transactions. The amount of risk absorbed by our residual interests generally is
represented by and limited to the amount of overcollaterization of the assets securing the debt and any cash reserves.
We have no obligation to repurchase or replace any securitized asset that subsequently becomes delinquent in
payment or otherwise is in default, except under standard representations and warranties such as good and marketable
title to the assets, or when certain changes are made to the underlying asset contracts. Securitization investors have no
recourse to us or our other assets and have no right to require us to repurchase the investments. We generally have no
obligation to provide liquidity or contribute cash or additional assets to the VIEs and do not guarantee any asset-backed
securities. We may be required to support the performance of certain securitization transactions, however, by increasing
cash reserves.
Although not contractually required, we regularly support our wholesale securitization programs by repurchasing
receivables of a dealer from a VIE when the dealer’s performance is at risk, which transfers the corresponding risk of loss
from the VIE to us. 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 balances of cash related to these contributions
were $0 at December 31, 2012 and 2011, respectively, and ranged from $0 to $373 million during 2012 and $0 to
$490 million during 2011. In addition, while not contractually required, we may purchase the commercial paper issued by
Ford Credit’s FCAR Owner Trust asset-backed commercial paper program (“FCAR”).
The following table includes assets to be used to settle the liabilities of the consolidated VIEs. We may retain debt
issued by consolidated VIEs and this debt is excluded from the table below. We hold the right to the excess cash flows
from the assets that are not needed to pay liabilities of the consolidated VIEs. The assets and debt reflected on our
consolidated balance sheet were as follows (in billions):
December 31, 2012

Cash and Cash
Equivalents
Finance
Receivables, Net
and
Net Investment in
Operating Leases Debt
Finance receivables
Retail $ 2.2 $ 27.0 $ 23.2
Wholesale 0.3 20.5 12.8
Total finance receivables 2.5 47.5 36.0
Net investment in operating leases 0.4 6.3 4.2
Total (a) $ 2.9 $ 53.8 $ 40.2
__________
(a) Certain notes issued by the VIEs to affiliated companies served as collateral for accessing the European Central Bank (“ECB”) open market
operations program. This external funding of $145 million at December 31, 2012 was not reflected as debt of the VIEs and is excluded from the
table above, but was included in our consolidated debt. The finance receivables backing this external funding are included in the table above.
December 31, 2011

Cash and Cash
Equivalents
Finance
Receivables, Net
and
Net Investment in
Operating Leases Debt
Finance receivables
Retail $ 2.5 $ 31.9 $ 26.0
Wholesale 0.5 17.9 11.2
Total finance receivables 3.0 49.8 37.2
Net investment in operating leases 0.4 6.4 4.2
Total (a) $ 3.4 $ 56.2 $ 41.4
__________
(a) Certain notes issued by the VIEs to affiliated companies served as collateral for accessing the ECB open market operations program. This external
funding of $246 million at December 31, 2011 was not reflected as debt of the VIEs and is excluded from the table above, but was included in our
consolidated debt. The finance receivables backing this external funding are included in the table above.

Ford Motor Company | 2012 Annual Report 101
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
101
NOTE 12. VARIABLE INTEREST ENTITIES (Continued)
Interest expense on securitization debt related to consolidated VIEs was $760 million, $994 million, and $1,247 million
in 2012, 2011, and 2010, respectively.
VIEs that are exposed to interest rate or currency risk have reduced their risks by entering into derivative transactions.
In certain instances, we have entered into offsetting derivative transactions with the VIE to protect the VIE from the risks
that are not mitigated through the derivative transactions between the VIE and its external counterparty. In other
instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks
absorbed through derivative transactions with the VIEs. See Note 18 for additional information regarding the accounting
for derivatives.
Our exposures based on the fair value of derivative instruments with external counterparties related to consolidated
VIEs that support our securitization transactions were as follows (in millions):
December 31, 2012 December 31, 2011

Derivative
Asset
Derivative
Liability
Derivative
Asset
Derivative
Liability
Derivatives of the VIEs $ 4 $ 134 $ 157 $ 97
Derivatives related to the VIEs 74 63 81 63
Total exposures related to the VIEs $ 78 $ 197 $ 238 $ 160
Derivative expense/(income) related to consolidated VIEs that support Ford Credit’s securitization programs for the
years ended December 31 was as follows (in millions):
2012 2011 2010
VIEs $ 227 $ 31 $ 225
Related to the VIEs (5) 11 (73)
Total derivative expense/(income) related to the VIEs $ 222 $ 42 $ 152
VIEs of Which We are Not the Primary Beneficiary
We have an investment in Forso Nordic AB, a joint venture determined to be a VIE of which we are not the primary
beneficiary. The joint venture provides consumer and dealer financing in its local markets and is financed by external debt
and additional subordinated debt provided by the joint venture partner. The operating agreement indicates that the power
to direct economically significant activities is shared with the joint venture partner, and the obligation to absorb losses or
right to receive benefits resides primarily with the joint venture partner. Our investment in the joint venture is accounted
for as an equity method investment and is included in Equity in net assets of affiliated companies. Our maximum
exposure to any potential losses associated with this VIE is limited to our equity investment, and amounted to $71 million
at December 31, 2012 and 2011, respectively.
For more information visit www.annualreport.ford.com

102 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
102
NOTE 13. NET PROPERTY AND LEASE COMMITMENTS
Net Property
Net property includes land, buildings and land improvements, machinery and equipment, special tools, and other
assets that we use in our normal operations. These assets are recorded at cost, net of accumulated depreciation and
impairments. We capitalize new assets when we expect to use the asset for more than one year. Routine maintenance
and repair costs are expensed when incurred.
Property and equipment are depreciated primarily using the straight-line method over the estimated useful life of the
asset. Useful lives range from 3 years to 36 years. The estimated useful lives generally are 14.5 years for machinery and
equipment, 3 years for software (8 years for mainframe and client based software), 30 years for land improvements, and
36 years for buildings. Special tools generally are amortized over the expected life of a product program using a straight-
line method. If the expected production volumes for major product programs associated with the tools decline
significantly, we accelerate the amortization reflecting the rate of decline.
Net property was as follows (in millions):
Automotive Sector
December 31,
2012
December 31,
2011
Land $ 423 $ 384
Buildings and land improvements 10,249 10,129
Machinery, equipment and other 35,040 34,363
Software 1,813 1,917
Construction in progress 1,783 1,311
Total land, plant and equipment and other 49,308 48,104
Accumulated depreciation (32,835) (32,874)
Net land, plant and equipment and other 16,473 15,230
Special tools, net of amortization 8,340 6,999
Total Automotive sector 24,813 22,229
Financial Services sector (a) 129 142
Total Company $ 24,942 $ 22,371
__________
(a) Included in Financial Services other assets on our sector balance sheet.
Automotive sector property-related expenses for the years ended December 31 were as follows (in millions):
2012 2011 2010
Depreciation and other amortization $ 1,794 $ 1,759 $ 1,956
Amortization of special tools 1,861 1,774 1,920
Total $ 3,655 $ 3,533 $ 3,876
Maintenance and rearrangement $ 1,352 $ 1,431 $ 1,397
Conditional Asset Retirement Obligations
We accrue for costs related to legal obligations to perform certain activities in connection with the retirement,
abandonment, or disposal of our assets for which the fair value can be reasonably estimated. These conditional asset
retirement obligations relate to the estimated costs for asbestos abatement and removal of polychlorinated biphenyl
(“PCB”).
Asbestos abatement costs were estimated using site-specific surveys where available and a per/square foot estimate
where surveys were unavailable. PCB removal costs were based on historical removal costs per transformer and applied
to transformers identified by a PCB transformer global survey we conducted.

Ford Motor Company | 2012 Annual Report 103
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
103
NOTE 13. NET PROPERTY AND LEASE COMMITMENTS (Continued)
The liability for our conditional asset retirement obligations which are recorded in Accrued liabilities and deferred
revenue was as follows (in millions):

December 31,
2012
December 31,
2011
Beginning balance $ 266 $ 331
Liabilities settled (8) (6)
Revisions to estimates 9 (59)
Ending balance $ 267 $ 266
Lease Commitments
We lease land, buildings, and equipment under agreements that expire over various contractual periods. Minimum
non-cancelable operating lease commitments at December 31, 2012 were as follows (in millions):
2013 2014 2015 2016 2017 Thereafter Total
Automotive sector $ 217 $ 189 $ 144 $ 98 $ 74 $ 172 $ 894
Financial Services sector 52 41 34 31 22 24 204
Total Company $ 269 $ 230 $ 178 $ 129 $ 96 $ 196 $ 1,098
Operating lease expense for the years ended December 31 was as follows (in millions):
2012 2011 2010
Automotive sector $ 404 $ 416 $ 475
Financial Services sector 106 124 136
Total Company $ 510 $ 540 $ 611
NOTE 14. NET INTANGIBLE ASSETS
Our intangible assets are comprised primarily of license and advertising agreements, land rights, patents, customer
contracts, and technology, and each is amortized over its determinable life.
The components of net intangible assets were as follows (in millions):
December 31, 2012 December 31, 2011

Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Automotive Sector
License and advertising agreements $ 118 $ (54) $ 64 $ 118 $ (47) $ 71
Land rights 23 (8) 15 23 (8) 15
Patents 27 (20) 7 26 (17) 9
Other 11 (10) 1 27 (22) 5
Total Automotive sector $ 179 $ (92) $ 87 $ 194 $ (94) $ 100
Amortization periods primarily range from 5 years to 25 years for our license and advertising agreements, from
40 years to 50 years for our land rights, and primarily from 7 years to 17 years for our patents. Our other intangibles
(primarily customer contracts and technology) have various amortization periods.
Pre-tax amortization expense for the periods ending December 31 was as follows (in millions):
2012 2011 2010
Pre-tax amortization expense $ 10 $ 12 $ 97
Amortization for current intangible assets is forecasted to be approximately $10 million in 2013 and each year
thereafter.
For more information visit www.annualreport.ford.com

104 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
104
NOTE 15. ACCRUED LIABILITIES AND DEFERRED REVENUE
Accrued liabilities and deferred revenue were as follows (in millions):

December 31,
2012
December 31,
2011
Automotive Sector
Current
Dealer and customer allowances and claims $ 6,779 $ 6,694
Deferred revenue 2,796 2,216
Employee benefit plans 1,504 1,552
Accrued interest 277 253
Other postretirement employee benefits (“OPEB”) 409 439
Pension 387 388
Other 3,206 3,461
Total Automotive accrued liabilities and deferred revenue 15,358 15,003
Non-current
Pension 18,400 15,091
OPEB 6,398 6,152
Dealer and customer allowances and claims 2,036 2,179
Deferred revenue 1,893 1,739
Employee benefit plans 767 709
Other 1,055 1,040
Total Automotive other liabilities 30,549 26,910
Total Automotive sector 45,907 41,913
Financial Services Sector 3,500 3,457
Total sectors 49,407 45,370
Intersector elimination (a) — (1)
Total Company $ 49,407 $ 45,369
__________
(a) Accrued interest related to Ford’s acquisition of Ford Credit debt securities. See Note 17 for additional details.

Ford Motor Company | 2012 Annual Report 105
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
105
NOTE 16. RETIREMENT BENEFITS
We provide pension benefits and OPEB, such as health care and life insurance, to employees in many of our
operations around the world. Plan obligations are measured based on the present value of projected future benefit
payments for all participants for services rendered to date. The measurement of projected future benefits is dependent on
the provisions of each specific plan, demographics of the group covered by the plan, and other key measurement
assumptions. For plans that provide benefits dependent on salary assumptions, we include a projection of salary growth
in our measurements. No assumption is made regarding any potential changes to benefit provisions beyond those to
which we are presently committed (e.g., in existing labor contracts).
The net periodic benefit costs associated with the Company’s defined benefit pension plans are determined using
assumptions regarding the benefit obligation and the market-related value of plan assets as of the beginning of each year.
We have elected to use a market-related value of plan assets to calculate the expected return on assets in net periodic
benefit costs. The market-related value recognizes changes in the fair value of plan assets in a systematic manner over
five years. Net periodic benefit costs are recorded in Automotive cost of sales and Selling, administrative, and other
expenses. The funded status of the benefit plans, which represents the difference between the benefit obligation and fair
value of plan assets, is calculated on a plan-by-plan basis. The benefit obligation and related funded status are
determined using assumptions as of the end of each year. The impact of plan amendments and actuarial gains and
losses are recorded in Accumulated other comprehensive income/(loss) and generally are amortized as a component of
net periodic cost over the remaining service period of our active employees. We record a curtailment when an event
occurs that significantly reduces the expected years of future service or eliminates the accrual of defined benefits for the
future services of a significant number of employees. We record a curtailment gain when the employees who are entitled
to the benefits terminate their employment; we record a curtailment loss when it becomes probable a loss will occur.
Our policy for funded pension plans is to contribute annually, at a minimum, amounts required by applicable laws and
regulations. We may make contributions beyond those legally required. In general, our plans are funded, with the main
exceptions being certain plans in Germany, and U.S. defined benefit plans for senior management. In such cases, an
unfunded liability is recorded.
Employee Retirement and Savings Plans. We, and certain of our subsidiaries, sponsor plans to provide pension
benefits for retired employees. We have qualified defined benefit retirement plans in the United States covering hourly
and salaried employees. The principal hourly plan covers Ford employees represented by the UAW. The salaried plan
covers substantially all other Ford employees in the United States hired on or before December 31, 2003. The hourly plan
provides noncontributory benefits related to employee service. The salaried plan provides similar noncontributory benefits
and contributory benefits related to pay and service. Other U.S. and non-U.S. subsidiaries have separate plans that
generally provide similar types of benefits for their employees.
We established, effective January 1, 2004, a defined contribution plan covering salaried U.S. employees hired on or
after that date. Effective October 24, 2011, hourly U.S. employees represented by the UAW hired on or after that date
also participate in a defined contribution plan.
On April 27, 2012, we announced a program to offer voluntary lump-sum pension payout options to eligible salaried
U.S. retirees and former salaried employees that, if accepted, would settle our obligation to them. The program provides
participants with a one-time choice of electing to receive a lump-sum settlement of their remaining pension benefit. Offers
to eligible participants began in August 2012 and will continue through 2013. In 2012, as part of this voluntary lump sum
program, the Company settled $1.2 billion of its pension obligations for salaried retirees.
The expense for our worldwide defined contribution plans was $167 million, $131 million, and $123 million in 2012,
2011, and 2010, respectively. This includes the expense for company matching contributions to our primary employee
savings plan in the United States of $70 million, $54 million, and $52 million in 2012, 2011, and 2010, respectively.
OPEB. We, and certain of our subsidiaries, sponsor plans to provide OPEB for retired employees, primarily certain
health care and life insurance benefits. The Ford Salaried Health Care Plan (the “Plan”) provides retiree health care
benefits for Ford salaried employees in the United States hired before June 1, 2001. U.S. salaried employees hired on or
after June 1, 2001 are covered by a separate plan that provides for annual company allocations to employee-specific
notional accounts to be used to fund postretirement health care benefits. The Plan also covers Ford hourly non-UAW
represented employees in the United States hired before November 19, 2007. U.S. hourly employees hired on or after
November 19, 2007 are eligible to participate in a separate health care plan that provides defined contributions made by
Ford to individual participant accounts. UAW-represented employees hired before November 19, 2007 are covered by the
UAW Retiree Medical Benefits Trust (the “UAW VEBA Trust”), an independent, non-Ford sponsored voluntary employee
beneficiary association trust. Company-paid postretirement life insurance benefits also are provided to U.S. salaried
employees hired before January 1, 2004 and all U.S. hourly employees.

106 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
106
NOTE 16. RETIREMENT BENEFITS (Continued)
Effective August 1, 2008, the Company-paid retiree basic life insurance benefits were capped at $25,000 for eligible
existing and future salaried retirees. Salaried employees hired on or after January 1, 2004 are not eligible for retiree basic
life insurance.
Benefit Plans – Expense and Status
The measurement date for all of our worldwide postretirement benefit plans is December 31. The pre-tax expense for
our defined benefit pension and OPEB plans for the years ended December 31 was as follows (in millions):
Pension Benefits
U.S. Plans Non-U.S. Plans Worldwide OPEB
2012 2011 2010 2012 2011 2010 2012 2011 2010
Service cost $ 521 $ 467 $ 376 $ 372 $ 327 $ 314 $ 67 $ 63 $ 54
Interest cost 2,208 2,374 2,530 1,189 1,227 1,249 290 327 338
Expected return on assets (2,873) (3,028) (3,172) (1,340) (1,404) (1,337) — — —
Amortization of
Prior service costs/(credits) 220 343 370 72 72 75 (545) (612) (617)
(Gains)/Losses 425 194 20 412 301 218 129 94 92
Separation programs/other 7 1 (2) 162 170 54 2 10 5
(Gains)/Losses from curtailments and
settlements 250 — — — 111 — (11) (26) (30)
Net expense/(income) $ 758 $ 351 $ 122 $ 867 $ 804 $ 573 $ (68) $ (144) $ (158)

Ford Motor Company | 2012 Annual Report 107
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
107
NOTE 16. RETIREMENT BENEFITS (Continued)
The year-end status of these plans was as follows (dollar amounts in millions):
Pension Benefits
U.S. Plans Non-U.S. Plans Worldwide OPEB
2012 2011 2012 2011 2012 2011
Change in Benefit Obligation
Benefit obligation at January 1 $ 48,816 $ 46,647 $ 25,163 $ 23,385 $ 6,593 $ 6,423
Service cost 521 467 372 327 67 63
Interest cost 2,208 2,374 1,189 1,227 290 327
Amendments (39) 5 222 38 (156) (62)
Separation programs and other (40) (52) 202 196 3 10
Curtailments — — — — — (50)
Settlements (1,123) — — (152) — —
Plan participant contributions 27 23 36 46 29 29
Benefits paid (3,427) (3,534) (1,420) (1,373) (454) (473)
Foreign exchange translation — — 803 (441) 47 (62)
Divestiture — — — — — —
Actuarial (gain)/loss 5,182 2,886 4,135 1,910 391 388
Benefit obligation at December 31 $ 52,125 $ 48,816 $ 30,702 $ 25,163 $ 6,810 $ 6,593
Change in Plan Assets
Fair value of plan assets at January 1 $ 39,414 $ 39,960 $ 19,198 $ 18,615 $ — $ —
Actual return on plan assets 5,455 2,887 1,637 934 — —
Company contributions 2,134 132 1,629 1,403 — —
Plan participant contributions 27 23 36 46 — —
Benefits paid (3,427) (3,534) (1,420) (1,373) — —
Settlements (1,123) — — (152) — —
Foreign exchange translation — — 641 (267) — —
Divestiture — — — — — —
Other (85) (54) (8) (8) — —
Fair value of plan assets at December 31 $ 42,395 $ 39,414 $ 21,713 $ 19,198 $ — $ —
Funded status at December 31 $ (9,730) $ (9,402) $ (8,989) $ (5,965) $ (6,810) $ (6,593)
Amounts Recognized on the Balance Sheet
Prepaid assets $ — $ — $ 85 $ 114 $ — $ —
Accrued liabilities (9,730) (9,402) (9,074) (6,079) (6,810) (6,593)
Total $ (9,730) $ (9,402) $ (8,989) $ (5,965) $ (6,810) $ (6,593)
Amounts Recognized in Accumulated Other
Comprehensive Loss (pre-tax)
Unamortized prior service costs/(credits) $ 938 $ 1,197 $ 487 $ 323 $ (1,263) $ (1,648)
Unamortized net (gains)/losses 11,349 9,394 11,375 7,612 2,594 2,305
Total $ 12,287 $ 10,591 $ 11,862 $ 7,935 $ 1,331 $ 657
Pension Plans in which Accumulated Benefit
Obligation Exceeds Plan Assets at December 31
Accumulated benefit obligation $ 50,821 $ 47,555 $ 21,653 $ 18,138
Fair value of plan assets 42,395 39,414 14,625 13,207
Accumulated Benefit Obligation at December 31 $ 50,821 $ 47,555 $ 28,136 $ 23,524
Pension Plans in which Projected Benefit Obligation
Exceeds Plan Assets at December 31
Projected benefit obligation $ 52,125 $ 48,816 $ 29,984 $ 24,184
Fair value of plan assets 42,395 39,414 20,910 18,105
Projected Benefit Obligation at December 31 $ 52,125 $ 48,816 $ 30,702 $ 25,163
For more information visit www.annualreport.ford.com

108 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
108
NOTE 16. RETIREMENT BENEFITS (Continued)
As a result of various personnel-reduction programs (discussed in Note 23), we have recognized curtailments in the
U.S. and Canadian OPEB plans.
In 2011, we recognized a settlement loss of $109 million associated with the partial settlement of a Belgium pension
plan.
In 2012, we changed our accounting policy for recognizing unamortized gains or losses upon the settlement of plan
obligations. We now recognize a proportionate amount of the unamortized gains and losses if the cost of all settlements
during the year exceeds the interest component of net periodic cost for the affected plan. Prior to 2012, we recognized a
proportionate amount of the unamortized gains and losses if the cost of all settlements during the year exceeded both
interest and service cost for the affected plan. The Company believes this change in accounting principle is preferable as
it results in the earlier recognition of unamortized gains and losses that previously had been deferred and recognized over
time.
An incremental settlement loss of $250 million related to the U.S. salaried lump sum program has been recognized
during 2012 as a result of this change with a corresponding balance sheet reduction in Accumulated other comprehensive
income/(loss). This accounting change does not impact financial results in prior periods.
The financial impact of the curtailments and settlements is reflected in the tables above and the expense is recorded
in Automotive cost of sales and Selling, administrative, and other expenses.
The following table summarizes the assumptions used to determine benefit obligation and expense:
Pension Benefits
U.S. Plans Non-U.S. Plans U.S. OPEB
2012 2011 2012 2011 2012 2011
Weighted Average Assumptions at December 31
Discount rate 3.84% 4.64% 3.92% 4.84% 3.80% 4.60%
Expected long-term rate of return on assets 7.38 7.50 6.74 6.77 — —
Average rate of increase in compensation 3.80 3.80 3.41 3.39 3.80 3.80
Assumptions Used to Determine Net Benefit Cost for the
Year Ended December 31
Discount rate 4.64% 5.24% 4.84% 5.31% 4.60% 5.20%
Expected long-term rate of return on assets 7.50 8.00 6.77 7.20 — —
Average rate of increase in compensation 3.80 3.80 3.39 3.34 3.80 3.80
The amounts in Accumulated other comprehensive income/(loss) that are expected to be recognized as components
of net expense/(income) during 2013 are as follows (in millions):
Pension Benefits
U.S. Plans
Non-U.S.
Plans
Worldwide
OPEB Total
Prior service cost/(credit) $ 174 $ 68 $ (286) $ (44)
(Gains)/Losses 778 707 160 1,645
Pension Plan Contributions
In 2012, we contributed $3.4 billion to our worldwide funded pension plans (including $2 billion in discretionary
contributions to our U.S. plans) and made $400 million of benefit payments to participants in unfunded plans. During
2013, we expect to contribute about $5 billion from Automotive cash and cash equivalents to our worldwide funded plans
(including discretionary contributions of about $3.4 billion largely to our U.S. plans), and to make $400 million of benefit
payments to participants in unfunded plans, for a total of about $5.4 billion.
Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major
U.S. pension plans in 2013.

Ford Motor Company | 2012 Annual Report 109
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
109
NOTE 16. RETIREMENT BENEFITS (Continued)
Estimated Future Benefit Payments
The following table presents estimated future gross benefit payments (in millions):
Gross Benefit Payments
Pension
U.S. Plans
Non-U.S.
Plans
Worldwide
OPEB
2013 $ 5,940 $ 1,370 $ 440
2014 3,320 1,350 400
2015 3,250 1,380 390
2016 3,200 1,410 390
2017 3,160 1,450 380
2018 – 2022 15,330 7,690 1,890
Pension Plan Asset Information
Investment Objective and Strategies. Our investment objectives for the U.S. plans are to minimize the volatility of the
value of our U.S. pension assets relative to U.S. pension liabilities and to ensure assets are sufficient to pay plan benefits.
As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011, in 2011 we adopted a broad
global pension de-risking strategy, including a revised U.S. investment strategy which increases the matching
characteristics of our assets relative to our liabilities. Our U.S. target asset allocations, which we expect to reach over the
next several years as the plans achieve full funding, are 80% fixed income and 20% growth assets (primarily alternative
investments, which include hedge funds, real estate, private equity, and public equity). Our largest non-U.S. plans (Ford
U.K. and Ford Canada) have similar investment objectives to the U.S. plans. We expect to reach target asset allocations
similar to the new U.S. target asset allocations over the next several years, subject to legal requirements in each country.
Investment strategies and policies for the U.S. plans and the largest non-U.S. plans reflect a balance of risk-reducing
and return-seeking considerations. The objective of minimizing the volatility of assets relative to liabilities is addressed
primarily through asset – liability matching, asset diversification, and hedging. The fixed income target asset allocation
matches the bond-like and long-dated nature of the pension liabilities. Assets are broadly diversified within asset classes
to achieve risk-adjusted returns that in total lower asset volatility relative to the liabilities. Our rebalancing policies ensure
actual allocations are in line with target allocations as appropriate. Strategies to address the goal of ensuring sufficient
assets to pay benefits include target allocations to a broad array of asset classes, and strategies within asset classes that
provide adequate returns, diversification, and liquidity.
All assets are externally managed and most assets are actively managed. Managers are not permitted to invest
outside of the asset class (e.g., fixed income, public equity, alternatives) or strategy for which they have been appointed.
We use investment guidelines and recurring audits as tools to ensure investment managers invest solely within the
investment strategy they have been provided.
Derivatives are permitted for fixed income investment and public equity managers to use as efficient substitutes for
traditional securities and to manage exposure to interest rate and foreign exchange risks. Interest rate and foreign
currency derivative instruments are used for the purpose of hedging changes in the fair value of assets that result from
interest rate changes and currency fluctuations. Interest rate derivatives also are used to adjust portfolio duration.
Derivatives may not be used to leverage or to alter the economic exposure to an asset class outside the scope of the
mandate an investment manager has been given. Alternative investment managers are permitted to employ leverage
(including through the use of derivatives or other tools) that may alter economic exposure.
Significant Concentrations of Risk. Significant concentrations of risk in our plan assets relate to interest rate, equity,
and operating risk. In order to minimize asset volatility relative to the liabilities, a portion of plan assets is allocated to
fixed income investments that are exposed to interest rate risk. Rate increases generally will result in a decline in fixed
income assets while reducing the present value of the liabilities. Conversely, rate decreases will increase fixed income
assets, partially offsetting the related increase in the liabilities.
For more information visit www.annualreport.ford.com

110 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
110
NOTE 16. RETIREMENT BENEFITS (Continued)

In order to ensure assets are sufficient to pay benefits, a portion of plan assets is allocated to growth assets (equity
investments and alternative investments) that are expected over time to earn higher returns with more volatility than fixed
income investments which more closely match pension liabilities. Within equities, risk is mitigated by constructing a
portfolio that is broadly diversified by geography, market capitalization, manager mandate size, investment style and
process. Within alternative investments, risk is similarly mitigated by constructing a portfolio that is broadly diversified by
asset class, investment strategy, manager, style and process.
Operating risks include the risks of inadequate diversification and weak controls. To mitigate these risks, investments
are diversified across and within asset classes in support of investment objectives. Policies and practices to address
operating risks include ongoing manager oversight (e.g., style adherence, team strength, firm health, and internal risk
controls), plan and asset class investment guidelines and instructions that are communicated to managers, and periodic
compliance and audit reviews to ensure adherence.
At year-end 2012, within the total fair value of our assets in major worldwide plans, we held less than 2% of fixed
income investments in the obligations of Greece, Ireland, Italy, Portugal, and Spain. Also at year-end 2012, we held less
than 2% in Ford securities.
Expected Long-Term Rate of Return on Assets. The long-term return assumption at year-end 2012 is 7.38% for the
U.S. plans, 7.25% for the U.K. plans, and 6.75% for the Canadian plans, and averages 6.74% for all non-U.S. plans. A
generally consistent approach is used worldwide to develop this assumption. This approach considers various sources,
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. Historical returns also are considered where appropriate.
At December 31, 2012, our actual 10-year annual rate of return on pension plan assets was 11.1% for the U.S. plans,
8.7% for the U.K. plans, and 6.4% for the Canadian plans. At December 31, 2011, our actual 10-year annual rate of
return on pension plan assets was 8.6% for the U.S. plans, 6.0% for the U.K. plans, and 4.6% for the Canadian plans.
Fair Value of Plan Assets. Pension assets are recorded at fair value, and include primarily fixed income and equity
securities, derivatives, and alternative investments, which include hedge funds, private equity, and real estate. Fixed
income and equity securities may each be combined into commingled fund investments. Commingled funds are valued to
reflect the pension fund’s interest in the fund based on the reported year-end net asset value (“NAV”). Alternative
investments are valued based on year-end reported NAV, with adjustments as appropriate for lagged reporting of 1 month
– 6 months.
Fixed Income – Government and Agency Debt Securities and Corporate Debt Securities. U.S. government and
government agency obligations, non-U.S. government and government agency obligations, municipal securities,
supranational obligations, corporate bonds, bank notes, floating rate notes, and preferred securities are valued based on
quotes received from independent pricing services or from dealers who make markets in such securities. Pricing services
utilize matrix pricing, which considers readily available inputs such as the yield or price of bonds of comparable quality,
coupon, maturity, and type, as well as dealer-supplied prices, and generally are categorized as Level 2 inputs in the fair
value hierarchy. Securities categorized as Level 3 typically are priced by dealers and pricing services that use proprietary
pricing models which incorporate unobservable inputs. These inputs primarily consist of yield and credit spread
assumptions.

Fixed Income – Agency and Non-Agency Mortgage and Other Asset-Backed Securities. U.S. and non-U.S.
government agency mortgage and asset-backed securities, non-agency collateralized mortgage obligations, commercial
mortgage securities, residential mortgage securities, and other asset-backed securities are valued based on quotes
received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize
matrix pricing, which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of
comparable quality, coupon, maturity and type, as well as dealer-supplied prices, and generally are categorized as Level 2
inputs in the fair value hierarchy. Securities categorized as Level 3 typically are priced by dealers and pricing services
that use proprietary pricing models which incorporate unobservable inputs. These inputs primarily consist of prepayment
curves, discount rates, default assumptions, and recovery rates.

Ford Motor Company | 2012 Annual Report 111
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
111
NOTE 16. RETIREMENT BENEFITS (Continued)
Equities. Equity securities are valued based on quoted prices and are primarily exchange-traded. Securities for
which official close or last trade pricing on an active exchange is available are classified as Level 1 in the fair value
hierarchy. If closing prices are not available, securities are valued at the last quoted bid price or may be valued using the
last available price and typically are categorized as Level 2. Level 3 securities often are thinly traded or delisted, with
unobservable pricing data.
Derivatives. Exchange-traded derivatives for which market quotations are readily available are valued at the last
reported sale price or official closing price as reported by an independent pricing service on the primary market or
exchange on which they are traded and are categorized as Level 1. Over-the-counter derivatives typically are valued by
independent pricing services and categorized as Level 2. Level 3 derivatives typically are priced by dealers and pricing
services that use proprietary pricing models which incorporate unobservable inputs, including extrapolated or model-
derived assumptions such as volatilities and yield and credit spread assumptions.

Alternative Assets. Hedge funds generally hold liquid and readily priced securities, such as public equities in long/
short funds, exchange-traded derivatives in macro/commodity trading advisor funds, and corporate bonds in credit relative
value funds. Since hedge funds do not have readily available market quotations, they are valued using the NAV provided
by the investment sponsor or third party administrator. Hedge fund assets typically are categorized as Level 3 in the fair
value hierarchy due to the inherent restrictions on redemptions that may affect our ability to sell the investment at its NAV
in the near term. Valuations may be lagged 1 month – 3 months. For 2012 and 2011, we made adjustments of
$33 million, and $(10) million, respectively, to adjust for hedge fund lagged valuations.
Private equity and real estate investments are less liquid. External investment managers typically report valuations
reflecting initial cost or updated appraisals, which are adjusted for cash flows, and realized and unrealized gains/losses.
Private equity and real estate funds do not have readily available market quotations, and therefore are valued using the
NAV provided by the investment sponsor or third party administrator. These assets typically are categorized as Level 3 in
the fair value hierarchy, due to the inherent restrictions on redemptions that may affect our ability to sell the investment at
its NAV in the near term. Valuations may be lagged 1 month – 6 months. The NAV will be adjusted for cash flows
(additional investments or contributions, and distributions) through year-end. We may make further adjustments for any
known substantive valuation changes not reflected in the NAV. For 2012 and 2011, we made adjustments of $56 million
and $6 million, respectively, to adjust for private equity lagged valuations. For 2012 and 2011, we made adjustments of
$24 million and $13 million, respectively, to adjust for real estate lagged valuations.
The Ford Germany defined benefit plan is funded through a group insurance contract and exists in a pooled structure
with other policy holders. The contract value represents the value of the underlying assets held by the insurance
company (primarily bonds) at the guaranteed rate of return. The adjustment to fair value to recognize contractual returns
is a significant unobservable input; therefore the contract is Level 3.
For more information visit www.annualreport.ford.com

112 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
112
NOTE 16. RETIREMENT BENEFITS (Continued)
The fair value of our pension benefits plan assets (including dividends and interest receivables of $274 million and
$84 million for U.S. and non-U.S. plans, respectively) by asset category was as follows (in millions):
U.S. Plans December 31, 2012
Level 1 Level 2 Level 3 Total
Asset Category
Equity
U.S. companies $ 7,544 $ 48 $ 15 $ 7,607
International companies 4,971 133 3 5,107
Derivative financial instruments (a) — — — —
Total equity 12,515 181 18 12,714
Fixed Income
U.S. government 2,523 — — 2,523
U.S. government-sponsored enterprises (b) — 3,236 3 3,239
Non-U.S. government — 2,884 32 2,916
Corporate bonds (c)
Investment grade — 10,581 80 10,661
High yield — 1,386 14 1,400
Other credit — 28 50 78
Mortgage/other asset-backed — 1,183 115 1,298
Commingled funds — 477 — 477
Derivative financial instruments (a)
Interest rate contracts (31) 15 — (16)
Credit contracts — 2 — 2
Other contracts — (122) — (122)
Total fixed income 2,492 19,670 294 22,456
Alternatives
Hedge funds (d) — — 3,121 3,121
Private equity (e) — — 2,412 2,412
Real estate (f) — — 457 457
Total alternatives — — 5,990 5,990
Cash and cash equivalents (g) — 1,844 57 1,901
Other (h) (681) 15 — (666)
Total assets at fair value $ 14,326 $ 21,710 $ 6,359 $ 42,395
_______
(a) Net derivative position.
(b) Debt securities primarily issued by U.S. government-sponsored enterprises (“GSEs”).
(c) “Investment grade” bonds are those rated Baa3/BBB or higher by at least two rating agencies; “High yield” bonds are those rated below investment
grade; “Other credit” refers to non-rated bonds.
(d) Funds investing in diverse hedge fund strategies with the following composition of underlying hedge fund investments within the U.S. pension plans
at December 31, 2012: global macro (39%), event-driven (21%), equity long/short (17%), relative value (13%), and multi-strategy (10%).
(e) Diversified investments in private equity funds with the following strategies: buyout (60%), venture capital (25%), mezzanine/distressed (8%), and
other (7%). Allocations are estimated based on latest available data for managers reflecting June 30, 2012 holdings.
(f) Investment in private property funds broadly classified as core (54%), value-added and opportunistic (46%).
(g) Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits.
(h) Primarily cash related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).

Ford Motor Company | 2012 Annual Report 113
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
113
NOTE 16. RETIREMENT BENEFITS (Continued)
Non-U.S. Plans December 31, 2012
Level 1 Level 2 Level 3 Total
Asset Category
Equity
U.S. companies $ 3,221 $ 223 $ — $ 3,444
International companies 3,424 188 1 3,613
Derivative financial instruments (a) — — — —
Total equity 6,645 411 1 7,057
Fixed Income
U.S. government 99 — — 99
U.S. government-sponsored enterprises (b) — 6 — 6
Non-U.S. government — 5,841 41 5,882
Corporate bonds (c)
Investment grade — 1,147 22 1,169
High yield — 268 1 269
Other credit — 13 6 19
Mortgage/other asset-backed — 168 28 196
Commingled funds — 504 — 504
Derivative financial instruments (a)
Interest rate contracts — 4 (1) 3
Credit contracts — (1) — (1)
Other contracts — — — —
Total fixed income 99 7,950 97 8,146
Alternatives
Hedge funds (d) — — 1,142 1,142
Private equity (e) — — 236 236
Real estate (f) — 1 329 330
Total alternatives — 1 1,707 1,708
Cash and cash equivalents (g) — 867 — 867
Other (h) (751) 16 4,670 3,935
Total assets at fair value $ 5,993 $ 9,245 $ 6,475 $ 21,713
_______
(a) Net derivative position.
(b) Debt securities primarily issued by GSEs.
(c) “Investment grade” bonds are those rated Baa3/BBB or higher by at least two rating agencies; “High yield” bonds are those rated below investment
grade; “Other credit” refers to non-rated bonds.
(d) Funds investing in diversified portfolio of underlying hedge funds. At December 31, 2012, the composition of underlying hedge fund investments
(within the U.K. and Canada pension plans) was: event-driven (36%), equity long/short (26%), multi-strategy (14%), global macro (13%) and
relative value (11%).
(e) Investments in private investment funds (funds of funds) pursuing strategies broadly classified as venture capital and buyouts.
(f) Investment in private property funds broadly classified as core (31%), value-added and opportunistic (69%). Also includes investment in real
assets.
(g) Primarily short-term investment funds to provide liquidity to plan investment managers.
(h) Primarily Ford-Werke GmbH (“Ford-Werke”) plan assets (insurance contract valued at $3,609 million) and cash related to net pending security
(purchases)/sales and net pending foreign currency purchases/(sales).
For more information visit www.annualreport.ford.com

114 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
114
NOTE 16. RETIREMENT BENEFITS (Continued)
The fair value of our pension benefits plan assets (including dividends and interest receivables of $291 million and
$78 million for U.S. and non-U.S. plans, respectively) by asset category was as follows (in millions):
U.S. Plans December 31, 2011
Level 1 Level 2 Level 3 Total
Asset Category
Equity
U.S. companies $ 7,331 $ 44 $ 12 $ 7,387
International companies 5,565 32 3 5,600
Commingled funds — 244 3 247
Derivative financial instruments (a) — — — —
Total equity 12,896 320 18 13,234
Fixed Income
U.S. government 4,084 — — 4,084
U.S. government-sponsored enterprises (b) — 4,581 7 4,588
Non-U.S. government — 1,375 169 1,544
Corporate bonds (c)
Investment grade — 9,061 33 9,094
High yield — 1,280 11 1,291
Other credit — 17 18 35
Mortgage/other asset-backed — 1,348 54 1,402
Commingled funds — 258 — 258
Derivative financial instruments (a)
Interest rate contracts 13 28 (3) 38
Credit contracts — (8) — (8)
Other contracts — (265) 9 (256)
Total fixed income 4,097 17,675 298 22,070
Alternatives
Hedge funds (d) — — 2,968 2,968
Private equity (e) — — 2,085 2,085
Real estate (f) — — 362 362
Total alternatives — — 5,415 5,415
Cash and cash equivalents (g) — 1,477 1 1,478
Other (h) (2,798) 18 (3) (2,783)
Total assets at fair value $ 14,195 $ 19,490 $ 5,729 $ 39,414
_______
(a) Net derivative position.
(b) Debt securities primarily issued by GSEs.
(c) “Investment grade” bonds are those rated Baa3/BBB or higher by at least two rating agencies; “High yield” bonds are those rated below investment
grade; “Other credit” refers to non-rated bonds.
(d) Funds investing in diverse hedge fund strategies (primarily commingled fund of funds) with the following composition of underlying hedge fund
investments within the U.S. pension plans at December 31, 2011: global macro (42%), equity long/short (21%), event-driven (18%), relative value
(11%), and multi-strategy (8%).
(e) Diversified investments in private equity funds with the following strategies: buyout (61%), venture capital (25%), mezzanine/distressed (8%), and
other (6%). Allocations are estimated based on latest available data for managers reflecting June 30, 2011 holdings.
(f) Investment in private property funds broadly classified as core (64%), value-added and opportunistic (36%).
(g) Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits.
(h) Primarily cash related to net pending trade purchases/sales and net pending foreign exchange purchases/sales.

Ford Motor Company | 2012 Annual Report 115
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
115
NOTE 16. RETIREMENT BENEFITS (Continued)
Non-U.S. Plans December 31, 2011
Level 1 Level 2 Level 3 Total
Asset Category
Equity
U.S. companies $ 2,596 $ 181 $ — $ 2,777
International companies 2,906 154 1 3,061
Derivative financial instruments (a) — — — —
Total equity 5,502 335 1 5,838
Fixed Income
U.S. government 33 — — 33
U.S. government-sponsored enterprises (b) — 16 — 16
Non-U.S. government 2 5,805 122 5,929
Corporate bonds (c)
Investment grade — 975 11 986
High yield — 271 — 271
Other credit — 15 — 15
Mortgage/other asset-backed — 189 6 195
Commingled funds — 415 — 415
Derivative financial instruments (a)
Interest rate contracts — (15) (6) (21)
Credit contracts — (1) — (1)
Other contracts — (1) — (1)
Total fixed income 35 7,669 133 7,837
Alternatives
Hedge funds (d) — — 1,053 1,053
Private equity (e) — — 123 123
Real estate (f) — 1 160 161
Total alternatives — 1 1,336 1,337
Cash and cash equivalents (g) — 370 — 370
Other (h) (554) 12 4,358 3,816
Total assets at fair value $ 4,983 $ 8,387 $ 5,828 $ 19,198
_______
(a) Net derivative position.
(b) Debt securities primarily issued by GSEs.
(c) “Investment grade” bonds are those rated Baa3/BBB or higher by at least two rating agencies; “High yield” bonds are those rated below investment
grade; “Other credit” refers to non-rated bonds.
(d) Funds investing in diversified portfolio of underlying hedge funds (commingled fund of funds). At December 31, 2011, the composition of underlying
hedge fund investments (within the U.K. and Canada pension plans) was: event-driven (30%), equity long/short (27%), global macro (14%), multi-
strategy (14%), relative value (11%), and cash (4%).
(e) Investments in private investment funds (funds of funds) pursuing strategies broadly classified as venture capital and buyouts.
(f) Investment in private property funds broadly classified as core (13%), value-added and opportunistic (87%). Also includes investment in real
assets.
(g) Primarily short-term investment funds to provide liquidity to plan investment managers.
(h) Primarily Ford-Werke plan assets (insurance contract valued at $3,406 million) and cash related to net pending trade purchases/sales and net
pending foreign exchange purchases/sales.
For more information visit www.annualreport.ford.com

116 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
116
NOTE 16. RETIREMENT BENEFITS (Continued)
The following table summarizes the changes in Level 3 pension benefits plan assets measured at fair value on a
recurring basis for the year ended December 31, 2012 (in millions):
U.S. Plans 2012
Return on plan assets Transfers

Fair
Value
at
January 1,
2012
Attributable
to Assets
Held
at
December 31,
2012
Attributable
to
Assets
Sold
Net
Purchases/
(Settlements)
Into
Level 3
Out of
Level 3
Fair
Value
at
December 31,
2012
Asset Category
Equity
U.S. companies $ 15 $ — $ — $ — $ — $ — $ 15
International companies 3 — 3 (3) 1 (1) 3
Derivative financial
instruments — — — — — — —
Total equity 18 — 3 (3) 1 (1) 18
Fixed Income
U.S. government — — — — — — —
U.S. government-sponsored
enterprises 8 — — (5) — — 3
Non-U.S. government 169 2 5 (137) 5 (12) 32
Corporate bonds
Investment grade 33 5 (4) 14 42 (10) 80
High yield 11 1 1 4 1 (4) 14
Other credit 17 5 — 28 — — 50
Mortgage/other asset-backed 54 1 3 43 21 (7) 115
Derivative financial
instruments
Interest rate contracts (3) — 5 (2) — — —
Credit contracts — — — — — — —
Other contracts 9 (3) (14) 12 — (4) —
Total fixed income 298 11 (4) (43) 69 (37) 294
Alternatives
Hedge funds 2,968 189 (6) (30) — — 3,121
Private equity 2,085 201 — 126 — — 2,412
Real estate 362 31 1 63 — — 457
Total alternatives 5,415 421 (5) 159 — — 5,990
Other (2) 2 — 67 — (10) 57
Total Level 3 fair value $ 5,729 $ 434 $ (6) $ 180 $ 70 $ (48) $ 6,359

Ford Motor Company | 2012 Annual Report 117
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
117
NOTE 16. RETIREMENT BENEFITS (Continued)
Non-U.S. Plans 2012
Return on plan assets Transfers

Fair
Value
at
January 1,
2012
Attributable
to Assets
Held
at
December 31,
2012
Attributable
to
Assets
Sold
Net
Purchases/
(Settlements)
Into
Level 3
Out of
Level 3
Fair
Value
at
December 31,
2012
Asset Category
Equity
U.S. companies $ — $ — $ — $ — $ — $ — $ —
International companies 1 — — — — — 1
Total equity 1 — — — — — 1
Fixed Income
U.S. government — — — — — — —
U.S. government-sponsored
enterprises — — — — — — —
Non-U.S. government 122 1 9 (31) — (60) 41
Corporate bonds
Investment grade 11 1 1 4 5 — 22
High yield — — — 1 — — 1
Other credit — — — 6 — — 6
Mortgage/other asset-backed 6 — — 14 8 — 28
Commingled funds — — — — — — —
Derivative financial
instruments (6) — (3) — 8 — (1)
Total fixed income 133 2 7 (6) 21 (60) 97
Alternatives
Hedge funds 1,053 79 10 — — — 1,142
Private equity 123 14 — 99 — — 236
Real estate 160 4 (1) 166 — — 329
Total alternatives 1,336 97 9 265 — — 1,707
Other (a) 4,358 312 — — — — 4,670
Total Level 3 fair value $ 5,828 $ 411 $ 16 $ 259 $ 21 $ (60) $ 6,475
_______
(a) Primarily Ford-Werke plan assets (insurance contract valued at $3,609 million).
For more information visit www.annualreport.ford.com

118 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
118
NOTE 16. RETIREMENT BENEFITS (Continued)
The following table summarizes the changes in Level 3 pension benefits plan assets measured at fair value on a
recurring basis for the year ended December 31, 2011 (in millions):
U.S. Plans 2011
Return on plan assets Transfers

Fair
Value
at
January 1,
2011
Attributable
to Assets
Held
at
December 31,
2011
Attributable
to
Assets
Sold
Net
Purchases/
(Settlements)
Into
Level 3
Out of
Level 3
Fair
Value
at
December 31,
2011
Asset Category
Equity
U.S. companies $ 16 $ (1) $ — $ — $ — $ — $ 15
International companies 6 — (1) (1) — (1) 3
Derivative financial
instruments — — — — — — —
Total equity 22 (1) (1) (1) — (1) 18
Fixed Income
U.S. government — — — — — — —
U.S. government-sponsored
enterprises 14 — — (5) — (1) 8
Non-U.S. government 280 (2) (3) (86) 13 (33) 169
Corporate bonds
Investment grade 28 4 2 18 3 (22) 33
High yield 2 (1) — 8 3 (1) 11
Other credit 50 (1) — (32) — — 17
Mortgage/other asset-backed 125 (3) 1 (38) 4 (35) 54
Derivative financial
instruments
Interest rate contracts (2) — (1) — — — (3)
Credit contracts — — — — — — —
Other contracts — 25 (8) (8) — — 9
Total fixed income 497 22 (9) (143) 23 (92) 298
Alternatives
Hedge funds 2,854 10 (22) 126 — — 2,968
Private equity 1,491 244 — 350 — — 2,085
Real estate 120 39 — 203 — — 362
Total alternatives 4,465 293 (22) 679 — — 5,415
Other (3) — — 1 — — (2)
Total Level 3 fair value $ 4,981 $ 314 $ (32) $ 536 $ 23 $ (93) $ 5,729

Ford Motor Company | 2012 Annual Report 119
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
119
NOTE 16. RETIREMENT BENEFITS (Continued)
Non-U.S. Plans 2011
Return on plan assets Transfers

Fair
Value
at
January 1,
2011
Attributable
to Assets
Held
at
December 31,
2011
Attributable
to
Assets
Sold
Net
Purchases/
(Settlements)
Into
Level 3
Out of
Level 3
Fair
Value
at
December 31,
2011
Asset Category
Equity
U.S. companies $ — $ — $ — $ — $ — $ — $ —
International companies 10 — — (5) 1 (5) 1
Commingled funds — — — — — — —
Total equity 10 — — (5) 1 (5) 1
Fixed Income
U.S. government — — — — — — —
U.S. government-sponsored
enterprises — — — — — — —
Non-U.S. government 103 (6) 1 28 — (4) 122
Corporate bonds
Investment grade 15 (1) 1 (7) 3 — 11
High yield 20 — — (10) — (10) —
Other credit — — — — — — —
Mortgage/other asset-backed 34 — 1 (24) 1 (6) 6
Commingled funds 8 — — (8) — — —
Derivative financial
instruments — — (2) (4) — — (6)
Total fixed income 180 (7) 1 (25) 4 (20) 133
Alternatives
Hedge funds 711 (31) 11 362 — — 1,053
Private equity 31 (3) — 95 — — 123
Real estate 11 6 — 143 — — 160
Total alternatives 753 (28) 11 600 — — 1,336
Other (a) 4,380 (22) — — — — 4,358
Total Level 3 fair value $ 5,323 $ (57) $ 12 $ 570 $ 5 $ (25) $ 5,828
_______
(a) Primarily Ford-Werke plan assets (insurance contract valued at $3,406 million).
NOTE 17. DEBT AND COMMITMENTS

Our debt consists of short-term and long-term unsecured debt securities, convertible debt securities, and unsecured
and secured 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 recorded on our balance sheet at par value adjusted for unamortized discount or premium and adjustments
related to designated fair value hedges (see Note 18 for policy detail). Discounts, premiums, and costs directly related to
the issuance of debt generally 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
Automotive interest income and other income/(expense), net and Financial Services other income/(loss), net.
For more information visit www.annualreport.ford.com

120 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
120
NOTE 17. DEBT AND COMMITMENTS (Continued)
The carrying value of our debt was as follows (in millions):
Interest Rates (a)
Average Contractual (b) Average Effective (c)
Automotive Sector
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Debt payable within one year
Short-term with non-affiliates $ 484 $ 559 1.5% 1.6% 1.5% 1.6%
Short-term with unconsolidated affiliates — 18
Long-term payable within one year
U.S. Department of Energy (“DOE”)
Advanced Technology Vehicles
Manufacturing (“ATVM”) Incentive
Program 591 240
Other debt 311 216
Total debt payable within one year 1,386 1,033
Long-term debt payable after one year
Public unsecured debt securities 5,420 5,260
Unamortized discount (100) (77)
Convertible notes 908 908
Unamortized discount (142) (172)
DOE ATVM Incentive Program 5,014 4,556
EIB Credit Facilities 729 698
Other debt 1,048 888
Unamortized discount (7) —
Total long-term debt payable after one
year 12,870 12,061 4.6% 4.9% 5.1% 5.5%
Total Automotive sector $ 14,256 $ 13,094
Fair value of Automotive sector debt (d) $ 14,867 $ 13,451
Financial Services Sector
Short-term debt
Asset-backed commercial paper $ 5,752 $ 6,835
Other asset-backed short-term debt 3,762 2,987
Floating rate demand notes 4,890 4,713
Commercial paper 1,686 156
Other short-term debt 1,655 1,905
Total short-term debt 17,745 16,596 1.1% 1.4% 1.1% 1.4%
Long-term debt
Unsecured debt
Notes payable within one year 5,830 6,144
Notes payable after one year 32,503 26,167
Asset-backed debt
Notes payable within one year 13,801 16,538
Notes payable after one year 20,266 20,621
Unamortized discount (134) (152)
Fair value adjustments (e) 791 681
Total long-term debt 73,057 69,999 3.8% 4.3% 4.1% 4.6%
Total Financial Services sector $ 90,802 $ 86,595
Fair value of Financial Services sector debt
(d) $ 94,578 $ 88,823
Total Automotive and Financial
Services sectors $ 105,058 $ 99,689
Intersector elimination (f) — (201)
Total Company $ 105,058 $ 99,488
__________
(a) Interest rates are presented for the fourth quarter of 2012 and the fourth quarter of 2011.
(b) Average contractual rates reflect the stated contractual interest rate with the exception of commercial paper, which is issued at a discount.
(c) Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees.
(d) The fair value of debt includes $484 million and $326 million of Automotive sector short-term debt and $8.4 billion and $7 billion of Financial
Services sector short-term debt at December 31, 2012 and 2011, respectively, carried at cost which approximates fair value. All debt is categorized
within Level 2 of the fair value hierarchy. See Note 4 for additional information.
(e) Adjustments related to designated fair value hedges of unsecured debt.
(f) Debt related to Ford’s acquisition of Ford Credit debt securities.
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
120
NOTE 17. DEBT AND COMMITMENTS (Continued)
The carrying value of our debt was as follows (in millions):
Interest Rates (a)
Average Contractual (b) Average Effective (c)
Automotive Sector
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Debt payable within one year
Short-term with non-affiliates $ 484 $ 559 1.5% 1.6% 1.5% 1.6%
Short-term with unconsolidated affiliates — 18
Long-term payable within one year
U.S. Department of Energy (“DOE”)
Advanced Technology Vehicles
Manufacturing (“ATVM”) Incentive
Program 591 240
Other debt 311 216
Total debt payable within one year 1,386 1,033
Long-term debt payable after one year
Public unsecured debt securities 5,420 5,260
Unamortized discount (100) (77)
Convertible notes 908 908
Unamortized discount (142) (172)
DOE ATVM Incentive Program 5,014 4,556
EIB Credit Facilities 729 698
Other debt 1,048 888
Unamortized discount (7) —
Total long-term debt payable after one
year 12,870 12,061 4.6% 4.9% 5.1% 5.5%
Total Automotive sector $ 14,256 $ 13,094
Fair value of Automotive sector debt (d) $ 14,867 $ 13,451
Financial Services Sector
Short-term debt
Asset-backed commercial paper $ 5,752 $ 6,835
Other asset-backed short-term debt 3,762 2,987
Floating rate demand notes 4,890 4,713
Commercial paper 1,686 156
Other short-term debt 1,655 1,905
Total short-term debt 17,745 16,596 1.1% 1.4% 1.1% 1.4%
Long-term debt
Unsecured debt
Notes payable within one year 5,830 6,144
Notes payable after one year 32,503 26,167
Asset-backed debt
Notes payable within one year 13,801 16,538
Notes payable after one year 20,266 20,621
Unamortized discount (134) (152)
Fair value adjustments (e) 791 681
Total long-term debt 73,057 69,999 3.8% 4.3% 4.1% 4.6%
Total Financial Services sector $ 90,802 $ 86,595
Fair value of Financial Services sector debt
(d) $ 94,578 $ 88,823
Total Automotive and Financial
Services sectors $ 105,058 $ 99,689
Intersector elimination (f) — (201)
Total Company $ 105,058 $ 99,488
__________
(a) Interest rates are presented for the fourth quarter of 2012 and the fourth quarter of 2011.
(b) Average contractual rates reflect the stated contractual interest rate with the exception of commercial paper, which is issued at a discount.
(c) Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees.
(d) The fair value of debt includes $484 million and $326 million of Automotive sector short-term debt and $8.4 billion and $7 billion of Financial
Services sector short-term debt at December 31, 2012 and 2011, respectively, carried at cost which approximates fair value. All debt is categorized
within Level 2 of the fair value hierarchy. See Note 4 for additional information.
(e) Adjustments related to designated fair value hedges of unsecured debt.
(f) Debt related to Ford’s acquisition of Ford Credit debt securities.

Ford Motor Company | 2012 Annual Report 121
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
121
NOTE 17. DEBT AND COMMITMENTS (Continued)
The fair value of debt presented above reflects interest accrued but not yet paid. Interest accrued on Automotive debt
is reported in Automotive accrued liabilities and deferred revenue and was $194 million and $205 million at
December 31, 2012 and 2011, respectively. Interest accrued on Financial Services debt is reported in Financial Services
other liabilities and deferred income and was $744 million and $836 million at December 31, 2012 and 2011, respectively.
See Note 4 for fair value methodology.
Maturities
Debt maturities at December 31, 2012 were as follows (in millions):
2013 2014 2015 2016 2017 Thereafter
Total Debt
Maturities
Automotive Sector
Public unsecured debt securities $ — $ — $ 160 $ — $ — $ 5,260 $ 5,420
Unamortized discount (a) — — — — — (100) (100)
Convertible notes — — — 883 — 25 908
Unamortized discount (a) — — — (137) — (5) (142)
DOE ATVM Incentive Program 591 591 591 591 591 2,650 5,605
Short-term and other debt (b) 795 100 1,145 139 108 285 2,572
Unamortized discount (a) (4) (2) (1) — — — (7)
Total Automotive debt 1,382 689 1,895 1,476 699 8,115 14,256
Financial Services Sector
Unsecured debt 14,061 4,019 8,906 4,898 6,459 8,221 46,564
Asset-backed debt 23,315 12,356 5,005 1,319 1,586 — 43,581
Unamortized (discount)/premium (a) (1) (76) (19) (15) (15) (8) (134)
Fair value adjustments (a) (c) 33 25 84 43 148 458 791
Total Financial Services debt 37,408 16,324 13,976 6,245 8,178 8,671 90,802
Total Company $ 38,790 $ 17,013 $ 15,871 $ 7,721 $ 8,877 $ 16,786 $ 105,058
__________
(a) Based on contractual payment date of related debt.
(b) Primarily non-U.S. affiliate debt and includes the EIB secured loan.
(c) Adjustments related to designated fair value hedges of unsecured debt.
For more information visit www.annualreport.ford.com

122 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
122
NOTE 17. DEBT AND COMMITMENTS (Continued)
Automotive Sector
Public Unsecured Debt Securities
Our public unsecured debt securities outstanding were as follows (in millions):

Aggregate Principal Amount
Outstanding
Title of Security
December 31,
2012
December 31,
2011
4 7/8% Debentures due March 26, 2015 $ 160 $ —
6 1/2% Debentures due August 1, 2018 361 361
8 7/8% Debentures due January 15, 2022 86 86
6.55% Debentures due October 3, 2022 (a) 15 15
7 1/8% Debentures due November 15, 2025 209 209
7 1/2% Debentures due August 1, 2026 193 193
6 5/8% Debentures due February 15, 2028 104 104
6 5/8% Debentures due October 1, 2028 (b) 638 638
6 3/8% Debentures due February 1, 2029 (b) 260 260
5.95% Debentures due September 3, 2029 (a) 8 8
6.15% Debentures due June 3, 2030 (a) 10 10
7.45% GLOBLS due July 16, 2031 (b) 1,794 1,794
8.900% Debentures due January 15, 2032 151 151
9.95% Debentures due February 15, 2032 4 4
5.75% Debentures due April 2, 2035 (a) 40 40
7.50% Debentures due June 10, 2043 (c) 593 593
7.75% Debentures due June 15, 2043 73 73
7.40% Debentures due November 1, 2046 398 398
9.980% Debentures due February 15, 2047 181 181
7.70% Debentures due May 15, 2097 142 142
Total public unsecured debt securities (d) $ 5,420 $ 5,260
__________
(a) Unregistered industrial revenue bonds.
(b) Listed on the Luxembourg Exchange and on the Singapore Exchange.
(c) Listed on the New York Stock Exchange; this debt was redeemed as of February 4, 2013.
(d) Excludes 9.215% Debentures due September 15, 2021 with an outstanding balance at December 31, 2012 of $180 million. The proceeds from
these securities were on-lent by Ford to Ford Holdings to fund Financial Services activity and are reported as Financial Services debt.
Convertible Notes
At December 31, 2012, we had outstanding $883 million and $25 million principal of 4.25% Senior Convertible Notes
due November 15, 2016 (“2016 Convertible Notes”) and December 15, 2036 (“2036 Convertible Notes”), respectively.
Subject to certain limitations relating to the price of Ford Common Stock, the 2016 Convertible Notes are convertible into
shares of Ford Common Stock, based on a conversion rate (subject to adjustment) of 109.8554 shares per
$1,000 principal amount of 2016 Convertible Notes (which is equal to a conversion price of $9.10 per share, representing
a 22% conversion premium based on the closing price of $7.44 per share on November 3, 2009). The 2036 Convertible
Notes are convertible into shares of Ford Common Stock, based on a conversion rate (subject to adjustment) of
111.0495 shares per $1,000 principal amount of 2036 Convertible Notes (which is equal to a conversion price of $9.01 per
share, representing a 22% conversion premium based on the closing price of $7.36 per share on December 6, 2006).
Upon conversion, we have the right to deliver, in lieu of shares of Ford Common Stock, either cash or a combination of
cash and Ford Common Stock. Holders may require us to purchase all or a portion of the Convertible Notes upon a
change in control of the Company, or for shares of Ford Common Stock upon a designated event that is not a change in
control, in each case for a price equal to 100% of the principal amount of the Convertible Notes being repurchased plus
any accrued and unpaid interest to, but not including, the date of repurchase. Additionally, holders of the
2036 Convertible Notes may require us to purchase all or a portion for cash on December 20, 2016 and
December 15, 2026.

Ford Motor Company | 2012 Annual Report 123
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
123
NOTE 17. DEBT AND COMMITMENTS (Continued)
We may terminate the conversion rights related to the 2016 Convertible Notes at any time on or after
November 20, 2014 if the closing price of Ford Common Stock exceeds 130% of the then-applicable conversion price for
20 trading days during any consecutive 30-trading-day period. Also, we may redeem for cash all or a portion of the
2036 Convertible Notes at our option at any time or from time to time on or after December 20, 2016 at a price equal to
100% of the principal amount of the 2036 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but not
including, the redemption date. We may terminate the conversion rights related to the 2036 Convertible Notes at any time
on or after December 20, 2013 if the closing price of Ford Common Stock exceeds 140% of the then-applicable
conversion price for 20 trading days during any consecutive 30-trading-day period.

Liability, equity, and if-converted components of our Convertible Notes are summarized as follows (in millions):
Total Effective Interest Rate

December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Liability component
4.25% Debentures due November 15, 2016 $ 768 $ 768 9.2% 9.2%
4.25% Debentures due November 15, 2016 (underwriter option) 115 115 8.6% 8.6%
Subtotal Convertible Debt due November 15, 2016 883 883
4.25% Debentures due December 15, 2036 25 25 10.5% 10.5%
Unamortized discount (142) (172)
Net carrying amount $ 766 $ 736
Equity component of outstanding debt (a) $ (225) $ (225)
Share value in excess of principal value, if converted (b) $ 384 $ 143
__________
(a) Recorded in Capital in excess of par value of stock.
(b) Based on share price of $12.95 and $10.76 as of December 31, 2012 and 2011, respectively.
We recognized interest cost on our Convertible Notes as follows (in millions):
2012 2011 2010
Contractual interest coupon $ 38 $ 38 $ 138
Amortization of discount 30 27 87
Total interest cost on Convertible Notes $ 68 $ 65 $ 225
2010 Conversion Offer. In the fourth quarter of 2010, pursuant to an exchange offer we conducted, about $2 billion
and $554 million principal amount of the 2016 Convertible Notes and 2036 Convertible Notes, respectively, were
exchanged for an aggregate of 274,385,596 shares of Ford Common Stock, $534 million in cash ($215 in cash per
$1,000 principal amount and $190 in cash per $1,000 principal amount of 2016 Convertible Notes and 2036 Convertible
Notes exchanged, respectively) and the applicable accrued and unpaid interest on such 2016 Convertible Notes and
2036 Convertible Notes. As a result of the conversion, we recorded a pre-tax loss of $962 million, net of unamortized
discounts, premiums, and fees, in Automotive interest income and other income/(expense), net.
DOE ATVM Incentive Program
In September 2009, we entered into a Loan Arrangement and Reimbursement Agreement (“Arrangement Agreement”)
with the DOE, pursuant to which the DOE agreed to (i) arrange a 13-year multi-draw term loan facility (the “Facility”) under
the ATVM Program in the aggregate principal amount of up to $5.9 billion, (ii) designate us as a borrower under the ATVM
Program and (iii) cause the Federal Financing Bank (“FFB”) to enter into the Note Purchase Agreement for the purchase
of notes to be issued by us evidencing such loans. In August 2012, the Facility was fully drawn with $5.9 billion
outstanding after we had drawn the remaining $137 million of available funds. We began repayment in September 2012,
and at December 31, 2012 an aggregate of $5.6 billion was outstanding. The proceeds of the ATVM loan have been used
to finance certain costs for fuel efficient, advanced technology vehicles. The principal amount of the ATVM loan bears
interest at a blended rate based on the U.S. Treasury yield curve at the time each draw was made (with the weighted-
average interest rate on all such draws being about 2.3% per annum).
The ATVM loan is repayable in equal quarterly installments of $148 million, which began in September 2012 and will
end in June 2022.
For more information visit www.annualreport.ford.com

124 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
124
NOTE 17. DEBT AND COMMITMENTS (Continued)
EIB Credit Facility
On July 12, 2010, Ford Motor Company Limited, our operating subsidiary in the United Kingdom (“Ford of Britain”),
entered into a credit facility for an aggregate amount of £450 million (equivalent to $729 million at December 31, 2012)
with the EIB. Proceeds of loans drawn under the facility are being used to fund costs for the research and development of
fuel-efficient engines and commercial vehicles with lower emissions, and related upgrades to an engine manufacturing
plant. The facility was fully drawn in the third quarter of 2010, and Ford of Britain had outstanding $729 million of loans at
December 31, 2012. The loans are five-year, non-amortizing loans secured by a guarantee from the U.K. government for
80% of the outstanding principal amount and cash collateral from Ford of Britain equal to approximately 20% of the
outstanding principal amount, and bear interest at a fixed rate of 3.9% per annum excluding a commitment fee of 0.30% to
the U.K. government. Ford of Britain has pledged substantially all of its fixed assets, receivables and inventory to the
U.K. government as collateral, and we have guaranteed Ford of Britain’s obligations to the U.K. government related to the
government’s guarantee.
Automotive Credit Facilities
Lenders under our Credit Agreement dated December 15, 2006, as amended and restated on November 24, 2009
and as further amended (the “Credit Agreement”), have commitments totaling $9.3 billion, in a revolving facility that will
mature on November 30, 2015, and commitments totaling an additional $307 million in a revolving facility that will mature
on November 30, 2013. Our Credit Agreement is free of material adverse change clauses, restrictive financial covenants
(for example, debt-to-equity limitations and minimum net worth requirements) and credit rating triggers that could limit our
ability to obtain funding. The Credit Agreement contains a liquidity covenant that requires us to maintain a minimum of
$4 billion in the aggregate of domestic cash, cash equivalents, loaned and marketable securities and/or availability under
the revolving credit facilities. On May 22, 2012, the collateral securing our Credit Agreement was automatically released
upon our senior, unsecured, long-term debt being upgraded to investment grade by Fitch and Moody’s. If our senior,
unsecured, long-term debt does not maintain at least two investment grade ratings, the guarantees of certain subsidiaries
will be reinstated.
At December 31, 2012, the utilized portion of the revolving credit facilities was $93 million, representing amounts
utilized as letters of credit. Less than 1% of the commitments in the revolving credit facilities are from financial institutions
that are based in Greece, Ireland, Italy, Portugal, and Spain.
At December 31, 2012, we had $901 million of local credit facilities to foreign Automotive affiliates, of which
$140 million has been utilized. Of the $901 million of committed credit facilities, $345 million expires in 2013, $196 million
expires in 2014, $318 million expires in 2015, and $42 million thereafter.
Financial Services Sector
Debt Repurchases and Calls
From time to time and based on market conditions, we may repurchase or call some of our outstanding unsecured
and asset-backed debt. If we have excess liquidity, and it is an economically favorable use of our available cash, we may
repurchase or call debt at a price lower or higher than its carrying value, resulting in a gain or loss on extinguishment.
2012 Debt Repurchases. Through market transactions, we repurchased and called an aggregate principal amount of
$628 million (including $43 million maturing in 2012) of our unsecured and asset backed debt. As a result, we recorded a
pre-tax loss of $14 million, net of unamortized premiums, discounts and fees in Financial Services other income/(loss), net
in 2012.
2011 Debt Repurchases. Through market transactions, we repurchased and called an aggregate principal amount of
$2.3 billion (including $268 million maturing in 2011) of our unsecured debt. As a result, we recorded a pre-tax loss of
$68 million, net of unamortized premiums, discounts and fees in Financial Services other income/(loss), net in 2011.
There were no repurchase or call transactions for asset-backed debt during 2011.
2010 Debt Repurchases. Through market transactions, we repurchased and called an aggregate principal amount of
$5.6 billion (including $683 million maturing in 2010) of its unsecured debt and asset-backed debt. As a result, we
recorded a pre-tax loss of $139 million, net of unamortized premiums and discounts, in Financial Services other income/
(loss), net in 2010.
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
124
NOTE 17. DEBT AND COMMITMENTS (Continued)
EIB Credit Facility
On July 12, 2010, Ford Motor Company Limited, our operating subsidiary in the United Kingdom (“Ford of Britain”),
entered into a credit facility for an aggregate amount of £450 million (equivalent to $729 million at December 31, 2012)
with the EIB. Proceeds of loans drawn under the facility are being used to fund costs for the research and development of
fuel-efficient engines and commercial vehicles with lower emissions, and related upgrades to an engine manufacturing
plant. The facility was fully drawn in the third quarter of 2010, and Ford of Britain had outstanding $729 million of loans at
December 31, 2012. The loans are five-year, non-amortizing loans secured by a guarantee from the U.K. government for
80% of the outstanding principal amount and cash collateral from Ford of Britain equal to approximately 20% of the
outstanding principal amount, and bear interest at a fixed rate of 3.9% per annum excluding a commitment fee of 0.30% to
the U.K. government. Ford of Britain has pledged substantially all of its fixed assets, receivables and inventory to the
U.K. government as collateral, and we have guaranteed Ford of Britain’s obligations to the U.K. government related to the
government’s guarantee.
Automotive Credit Facilities
Lenders under our Credit Agreement dated December 15, 2006, as amended and restated on November 24, 2009
and as further amended (the “Credit Agreement”), have commitments totaling $9.3 billion, in a revolving facility that will
mature on November 30, 2015, and commitments totaling an additional $307 million in a revolving facility that will mature
on November 30, 2013. Our Credit Agreement is free of material adverse change clauses, restrictive financial covenants
(for example, debt-to-equity limitations and minimum net worth requirements) and credit rating triggers that could limit our
ability to obtain funding. The Credit Agreement contains a liquidity covenant that requires us to maintain a minimum of
$4 billion in the aggregate of domestic cash, cash equivalents, loaned and marketable securities and/or availability under
the revolving credit facilities. On May 22, 2012, the collateral securing our Credit Agreement was automatically released
upon our senior, unsecured, long-term debt being upgraded to investment grade by Fitch and Moody’s. If our senior,
unsecured, long-term debt does not maintain at least two investment grade ratings, the guarantees of certain subsidiaries
will be reinstated.
At December 31, 2012, the utilized portion of the revolving credit facilities was $93 million, representing amounts
utilized as letters of credit. Less than 1% of the commitments in the revolving credit facilities are from financial institutions
that are based in Greece, Ireland, Italy, Portugal, and Spain.
At December 31, 2012, we had $901 million of local credit facilities to foreign Automotive affiliates, of which
$140 million has been utilized. Of the $901 million of committed credit facilities, $345 million expires in 2013, $196 million
expires in 2014, $318 million expires in 2015, and $42 million thereafter.
Financial Services Sector
Debt Repurchases and Calls
From time to time and based on market conditions, we may repurchase or call some of our outstanding unsecured
and asset-backed debt. If we have excess liquidity, and it is an economically favorable use of our available cash, we may
repurchase or call debt at a price lower or higher than its carrying value, resulting in a gain or loss on extinguishment.
2012 Debt Repurchases. Through market transactions, we repurchased and called an aggregate principal amount of
$628 million (including $43 million maturing in 2012) of our unsecured and asset backed debt. As a result, we recorded a
pre-tax loss of $14 million, net of unamortized premiums, discounts and fees in Financial Services other income/(loss), net
in 2012.
2011 Debt Repurchases. Through market transactions, we repurchased and called an aggregate principal amount of
$2.3 billion (including $268 million maturing in 2011) of our unsecured debt. As a result, we recorded a pre-tax loss of
$68 million, net of unamortized premiums, discounts and fees in Financial Services other income/(loss), net in 2011.
There were no repurchase or call transactions for asset-backed debt during 2011.
2010 Debt Repurchases. Through market transactions, we repurchased and called an aggregate principal amount of
$5.6 billion (including $683 million maturing in 2010) of its unsecured debt and asset-backed debt. As a result, we
recorded a pre-tax loss of $139 million, net of unamortized premiums and discounts, in Financial Services other income/
(loss), net in 2010.

Ford Motor Company | 2012 Annual Report 125
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
125
NOTE 17. DEBT AND COMMITMENTS (Continued)
Asset-Backed Debt
Ford Credit engages in securitization transactions to fund operations and to maintain liquidity. Ford Credit’s
securitization transactions are recorded as asset-backed debt and the associated assets are not de-recognized and
continue to be included in our financial statements.
The finance receivables and cash flows related to the net investment in operating leases that have been included in
securitization transactions are only available for payment of the debt and other obligations issued or arising in the
securitization transactions. They are not available to pay Ford Credit’s other obligations or the claims of its other
creditors. Ford Credit does, however, hold the right to the excess cash flows not needed to pay the debt and other
obligations issued or arising in each of the securitization transactions. The debt is the obligation of our consolidated
securitization entities and not Ford Credit’s legal obligation or that of its other subsidiaries.
The following table shows the assets and liabilities related to our asset-backed debt arrangements that are included in
our financial statements for the years ended December 31 (in billions):
2012

Cash and Cash
Equivalents
Finance
Receivables, Net
and
Net Investment in
Operating Leases
Related
Debt
VIEs (a)
Finance receivables $ 2.5 $ 47.5 $ 36.0
Net investment in operating leases 0.4 6.3 4.2
Total $ 2.9 $ 53.8 $ 40.2
Non-VIE
Finance receivables (b) $ 0.1 $ 3.5 $ 3.3
Total securitization transactions
Finance receivables $ 2.6 $ 51.0 $ 39.3
Net investment in operating leases 0.4 6.3 4.2
Total $ 3.0 $ 57.3 $ 43.5
2011

Cash and Cash
Equivalents
Finance
Receivables, Net
and
Net Investment in
Operating Leases
Related
Debt
VIEs (a)
Finance receivables $ 3.0 $ 49.8 $ 37.2
Net investment in operating leases 0.4 6.4 4.2
Total $ 3.4 $ 56.2 $ 41.4
Non-VIE
Finance receivables (b) $ 0.3 $ 6.2 $ 5.6
Total securitization transactions
Finance receivables $ 3.3 $ 56.0 $ 42.8
Net investment in operating leases 0.4 6.4 4.2
Total $ 3.7 $ 62.4 $ 47.0
__________
(a) Includes assets to be used to settle liabilities of the consolidated VIEs. See Note 12 for additional information on Financial Services sector VIEs.
(b) Certain debt issued by the VIEs to affiliated companies served as collateral for accessing the ECB open market operations program. This external
funding of $145 million and $246 million at December 31, 2012 and 2011, respectively was not reflected as a liability of the VIEs and is reflected as
a non-VIE liability above. The finance receivables backing this external funding are reflected in VIE finance receivables.
Financial Services sector asset-backed debt also included $64 million and $75 million at December 31, 2012 and 2011,
respectively, that is secured by property.
For more information visit www.annualreport.ford.com

126 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
126
NOTE 17. DEBT AND COMMITMENTS (Continued)
Credit Facilities
At December 31, 2012, Ford Credit and its majority-owned subsidiaries had $922 million of contractually committed
unsecured credit facilities with financial institutions, including FCE Bank plc’s (“FCE”) £440 million (equivalent to
$713 million at December 31, 2012) syndicated credit facility (the “FCE Credit Agreement”) which matures in 2014. At
December 31, 2012, $866 million were available for use. In January 2013, FCE drew £330 million (equivalent to about
$535 million) of its syndicated facility. The FCE Credit Agreement contains certain covenants, including an obligation for
FCE to maintain its ratio of regulatory capital to risk weighted assets at no less than the applicable regulatory minimum,
and for the support agreement between FCE and Ford Credit to remain in full force and effect (and enforced by FCE to
ensure that its net worth is maintained at no less than $500 million). In addition to customary payment, representation,
bankruptcy, and judgment defaults, the FCE Credit Agreement contains cross-payment and cross-acceleration defaults
with respect to other debt.
In addition, at December 31, 2012, Ford Credit had $6.3 billion of contractually-committed liquidity facilities provided
by banks to support its FCAR program of which $3.3 billion expire in 2013 and $3 billion expire in 2014. Utilization of
these facilities is subject to conditions specific to the FCAR program and Ford Credit having a sufficient amount of eligible
retail assets for securitization. The FCAR program must be supported by liquidity facilities equal to at least 100% of its
outstanding balance. At December 31, 2012, about $6.3 billion of FCAR’s bank liquidity facilities were available to support
FCAR’s asset-backed commercial paper, subordinated debt or FCAR’s purchase of Ford Credit asset-backed
securities. At December 31, 2012, the outstanding commercial paper balance for the FCAR program was $5.8 billion.
Committed Liquidity Programs
Ford Credit and its subsidiaries, including FCE, have entered into agreements with a number of bank-sponsored
asset-backed commercial paper conduits and other financial institutions. Such counterparties are contractually committed,
at Ford Credit’s option, to purchase from Ford Credit eligible retail or wholesale assets or to purchase or make advances
under asset-backed securities backed by retail, lease, or wholesale assets for proceeds of up to $24.3 billion ($12.9 billion
retail, $7 billion wholesale, and $4.4 billion lease assets) at December 31, 2012, of which about $4.9 billion are
commitments to FCE. These committed liquidity programs have varying maturity dates, with $23.4 billion (of which about
$4.2 billion relates to FCE commitments) having maturities within the next twelve months and the remaining balance
having maturities between April 2014 and October 2014. Ford Credit plans to achieve capacity renewals to protect its
global funding needs, optimize capacity utilization and maintain sufficient liquidity.
Ford Credit’s ability to obtain funding under these programs is subject to having a sufficient amount of assets eligible
for these programs as well as its ability to obtain interest rate hedging arrangements for certain securitization transactions.
Ford Credit’s capacity in excess of eligible receivables would protect it against the risk of lower than planned renewal
rates. At December 31, 2012, $12.3 billion of these commitments were in use. These programs are free of material
adverse change clauses, restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth
requirements), and generally, credit rating triggers that could limit Ford Credit’s ability to obtain funding. However, the
unused portion of these commitments may be terminated if the performance of the underlying assets deteriorates beyond
specified levels. Based on Ford Credit’s experience and knowledge as servicer of the related assets, it does not expect
any of these programs to be terminated due to such events.

Ford Motor Company | 2012 Annual Report 127
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
127
NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
In the normal course of business, our operations are exposed to global market risks, including the effect of changes in
foreign currency exchange rates, certain commodity prices, and interest rates. To manage these risks, we enter into
various derivatives contracts:
• Foreign currency exchange contracts, including forwards and options, that are used to manage foreign exchange
exposure;
• Commodity contracts, including forwards and options, that are used to manage commodity price risk;
• Interest rate contracts including swaps, caps, and floors that are used to manage the effects of interest rate
fluctuations; and
• Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures
on foreign-denominated debt.

Our derivatives are over-the-counter customized derivative transactions and are not exchange-traded. We review our
hedging program, derivative positions, and overall risk management strategy on a regular basis.
Derivative Financial Instruments and Hedge Accounting. All derivatives are recognized on the balance sheet at fair
value. We do not net our derivative position by counterparty for purposes of balance sheet presentation and disclosure.
We do, however, consider our net position for determining fair value.

We have elected to apply hedge accounting to certain derivatives. Derivatives that are designated in hedging
relationships are evaluated for effectiveness using regression analysis at the time they are designated and throughout the
hedge period.

Some derivatives do not qualify for hedge accounting; for others, we elect not to apply hedge accounting.
Regardless, we only enter into transactions that we believe will be highly effective at offsetting the underlying economic
risk.
Cash Flow Hedges. Our Automotive sector has designated certain forward contracts as cash flow hedges of
forecasted transactions with exposure to foreign currency exchange risk.
The effective portion of changes in the fair value of cash flow hedges is deferred in Accumulated other comprehensive
income/(loss) and is recognized in Automotive cost of sales when the hedged item affects earnings. The ineffective
portion is reported in Automotive cost of sales in the period of measurement. Our policy is to de-designate cash flow
hedges prior to the time forecasted transactions are recognized as assets or liabilities on the balance sheet and report
subsequent changes in fair value through Automotive cost of sales. If it becomes probable that the originally-forecasted
transaction will not occur, the related amount included in Accumulated other comprehensive income/(loss) is reclassified
and recognized in earnings. The majority of our cash flow hedges mature in 2 years or less.
Fair Value Hedges. Our Financial Services sector uses derivatives to reduce the risk of changes in the fair value of
debt. We have designated certain receive-fixed, pay-float interest rate swaps as fair value hedges of fixed-rate debt. The
risk being hedged is the risk of changes in the fair value of the hedged debt attributable to changes in the benchmark
interest rate. If the hedge relationship is deemed to be highly effective, we record the changes in the fair value of the
hedged debt related to the risk being hedged in Financial Services debt with the offset in Financial Services other income/
(loss), net. The change in fair value of the related derivative (excluding accrued interest) also is recorded in Financial
Services other income/(loss), net. Net interest settlements and accruals on fair value hedges are excluded from the
assessment of hedge effectiveness. We report net interest settlements and accruals on fair value hedges in Interest
expense. The cash flows associated with fair value hedges are reported in Net cash provided by/(used in) operating
activities on our statement of cash flows.
When a fair value hedge is de-designated, or when the derivative is terminated before maturity, the fair value
adjustment to the hedged debt continues to be reported as part of the carrying value of the debt and is amortized over its
remaining life.
Derivatives Not Designated as Hedging Instruments. Our Automotive sector reports changes in the fair value of
derivatives not designated as hedging instruments through Automotive cost of sales. Cash flows associated with non-
designated or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our
statements of cash flows.
For more information visit www.annualreport.ford.com

128 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
128
NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Our Financial Services sector reports net interest settlements and accruals and changes in the fair value of interest
rate swaps not designated as hedging instruments in Financial Services other income/(loss) net. Foreign currency
revaluation on accrued interest along with gains and losses on foreign exchange contracts and cross currency interest
rate swaps are reported in Financial Services Operating and other expenses. Cash flows associated with non-designated
or de-designated derivatives are reported in Net cash provided by/(used in) investing activities in our statements of cash
flows.

Net Investment Hedges. We have used foreign currency exchange derivatives to hedge the net assets of certain
foreign entities to offset the translation and economic exposures related to our investment in these entities. The effective
portion of changes in the value of designated instruments (i.e., the spot-to-spot) is included in Accumulated other
comprehensive income/(loss) as a foreign currency translation adjustment until the hedged investment is sold or
liquidated. When the investment is sold or liquidated, the hedge gains and losses previously reported in Accumulated
other comprehensive income/(loss) are recognized in Automotive interest income and other income/(loss), net as part of
the gain or loss on sale. Presently, we have had no derivative instruments in an active net investment hedging
relationship.
Normal Purchases and Normal Sales Classification. We have elected to apply the normal purchases and normal
sales classification for physical supply contracts that are entered into for the purpose of procuring commodities to be used
in production over a reasonable period in the normal course of our business.

Ford Motor Company | 2012 Annual Report 129
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
129
NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Income Effect of Derivative Financial Instruments
The following table summarizes by hedge designation the pre-tax gains/(losses) recorded in Other comprehensive
income/(loss) (“OCI”), reclassified from Accumulated other comprehensive income/(loss) (“AOCI”) to income and/or
recognized directly in income for the years ended December 31 (in millions):
2012 2011 2010

Gain/
(Loss)
Recorded
in OCI
Gain/(Loss)
Reclassified
from AOCI
to Income
Gain/(Loss)
Recognized
in Income
Gain/
(Loss)
Recorded
in OCI
Gain/(Loss)
Reclassified
from AOCI
to Income
Gain/(Loss)
Recognized
in Income
Gain/
(Loss)
Recorded
in OCI
Gain/(Loss)
Reclassified
from AOCI
to Income
Gain/(Loss)
Recognized
in Income
Automotive Sector
Cash flow hedges
Foreign currency exchange
contracts $ (371) $ (377) $ 1 $ (100) $ 119 $ (3) $ (7) $ 17 $ —
Derivatives not designated as
hedging instruments
Foreign currency exchange
contracts $ (138) $ 20 $ (183)
Commodity contracts (65) (423) 68
Other – warrants (4) (1) 2
Total $ (207) $ (404) $ (113)
Financial Services Sector
Fair value hedges
Interest rate contracts
Net interest settlements
and accruals excluded
from the assessment of
hedge effectiveness $ 177 $ 217 $ 225
Ineffectiveness (a) 16 (30) (6)
Total $ 193 $ 187 $ 219
Derivatives not designated as
hedging instruments
Interest rate contracts $ (14) $ (5) $ 38
Foreign currency exchange
contracts (70) (48) (88)
Cross-currency interest rate
swap contracts (150) (3) (1)
Other (b) (81) 65 —
Total $ (315) $ 9 $ (51)
__________
(a) For 2012, 2011, and 2010, hedge ineffectiveness reflects change in fair value on derivatives of $228 million gain, $433 million gain, and
$117 million gain, respectively, and change in value on hedged debt attributable to the change in benchmark interest rate of $212 million loss,
$463 million loss, and $123 million loss, respectively.
(b) Reflects gains/(losses) for derivative features included in the FUEL Notes (see Note 4).
For more information visit www.annualreport.ford.com

130 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
130
NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Balance Sheet Effect of Derivative Financial Instruments
The following table summarizes the notional amount and estimated fair value of our derivative financial instruments
(in millions):
December 31, 2012 December 31, 2011
Notional
Fair Value of
Assets
Fair Value of
Liabilities Notional
Fair Value of
Assets
Fair Value of
Liabilities
Automotive Sector
Cash flow hedges
Foreign currency exchange contracts $ 17,663 $ 150 $ 357 $ 14,535 $ 120 $ 368
Derivatives not designated as hedging
instruments
Foreign currency exchange contracts 9,225 68 129 5,692 92 80
Commodity contracts 1,854 23 124 2,396 2 372
Other – warrants — — — 12 4 —
Total derivatives not designated as
hedging instruments 11,079 91 253 8,100 98 452
Total Automotive sector derivative
financial instruments $ 28,742 $ 241 $ 610 $ 22,635 $ 218 $ 820
Financial Services Sector
Fair value hedges
Interest rate contracts $ 16,754 $ 787 $ 8 $ 7,786 $ 526 $ —
Derivatives not designated as hedging
instruments
Interest rate contracts 68,919 504 248 70,639 670 237
Foreign currency exchange contracts 2,378 9 8 3,582 30 50
Cross-currency interest rate swap
contracts 3,006 — 117 987 12 12
Other (a) — — — 2,500 137 —
Total derivatives not designated as
hedging instruments 74,303 513 373 77,708 849 299
Total Financial Services sector
derivative financial instruments $ 91,057 $ 1,300 $ 381 $ 85,494 $ 1,375 $ 299
__________
(a) Represents derivative features included in the FUEL Notes (see Note 4). The derivative features included in the FUEL Notes were extinguished as
a result of the mandatory exchange of the FUEL Notes to unsecured notes in the second quarter of 2012.

The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties and,
therefore, are not a direct measure of our exposure to the financial risks described above. Notional amounts are
presented on a gross basis with no netting of offsetting exposure positions. The amounts exchanged are calculated by
reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange
rates, or commodity volumes and prices.
On our consolidated balance sheet, derivative assets are reported in Other assets for Automotive and Financial
Services sectors, and derivative liabilities are reported in Payables for our Automotive sector and in Accrued liabilities and
deferred revenue for our Financial Services sector.

Ford Motor Company | 2012 Annual Report 131
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
131
NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Counterparty Risk and Collateral
The use of derivatives exposes us to the risk that a counterparty may default on a derivative contract. We establish
exposure limits for each counterparty to minimize this risk and provide counterparty diversification. Substantially all of our
derivative exposures are with counterparties that have an investment grade rating. The aggregate fair value of our
derivative instruments in asset positions on December 31, 2012 was $1.5 billion, representing the maximum loss that we
would recognize at that date if all counterparties failed to perform as contracted. We enter into master agreements with
counterparties that generally allow for netting of certain exposures; therefore, the actual loss we would recognize if all
counterparties failed to perform as contracted would be lower.
We include an adjustment for non-performance risk in the measurement of fair value of derivative instruments. Our
adjustment for non-performance risk is relative to a measure based on an unadjusted inter-bank deposit rate
(e.g., LIBOR). For our Automotive sector, at December 31, 2012 and 2011, our adjustment decreased derivative assets
by $1 million and $3 million, respectively, and decreased derivative liabilities by $1 million and $10 million, respectively.
For our Financial Services sector, at December 31, 2012 and 2011, our adjustment decreased derivative assets by
$14 million and $54 million, respectively, and decreased derivative liabilities by $5 million and $7 million, respectively. See
Note 4 for more detail on valuation methodologies.
We post cash collateral with certain counterparties based on our net position with regard to foreign currency and
commodity derivative contracts. As of December 31, 2012 and 2011, we posted $0 and $70 million, respectively, in Other
assets for posted collateral.
NOTE 19. REDEEMABLE NONCONTROLLING INTEREST
On September 1, 2012, with respect to the business combination of AAI, we recognized a redeemable noncontrolling
interest related to Mazda Motor Corporation’s (“Mazda’s”) 50% equity interest in AAI. Mazda’s share in AAI is redeemable
by Ford or Mazda for a three-year period commencing on September 1, 2015 (see Note 25). The following table
summarizes the changes in our redeemable noncontrolling interest for the period ended December 31 (in millions):
2012
Balance on September 1, 2012 $ 319
Accretion to the redemption value of noncontrolling interest (recognized in Interest expense) 3
Ending balance $ 322
For more information visit www.annualreport.ford.com

132 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
132
NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)
The following table summarizes the changes in the accumulated balances for each component of AOCI attributable to
Ford Motor Company for the years ended December 31 (in millions):
2012 2011 2010
Foreign currency translation
Beginning balance $ (1,383) $ (665) $ 1,568
Net gain/(loss) on foreign currency translation (net of tax of $0, $2 and $2) 157 (697) (497)
Reclassifications to net income (a) (15) (21) (1,736)
Other comprehensive income/(loss), net of tax (b) 142 (718) (2,233)
Ending balance $ (1,241) $ (1,383) $ (665)
Derivative instruments (e)
Beginning balance $ (181) $ (29) $ (5)
Net gain/(loss) on derivative instruments (net of tax benefit of $115, $29 and $1) (256) (71) (6)
Reclassifications to net income (net of tax of $115, tax benefit of $38 and tax of $1) (c) 262 (81) (18)
Other comprehensive income/(loss), net of tax 6 (152) (24)
Ending balance $ (175) $ (181) $ (29)
Pension and other postretirement benefits
Beginning balance $ (17,170) $ (13,617) $ (12,427)
Prior service cost arising during the period (net of tax benefit of $1, $35 and $1) (31) 56 60
Net gain/(loss) arising during the period (net of tax benefit of $2,238, $1,461 and tax of
$142) (4,693) (4,229) (1,690)
Amortization of prior service cost included in net income (net of tax benefit of $100, $183
and tax of $4) (d) (164) (40) (230)
Amortization of (gain)/loss included in net income (net of tax of $404, $69 and $0) (d) 812 631 354
Translation impact on non-U.S. plans (192) 29 316
Other comprehensive income/(loss), net of tax (4,268) (3,553) (1,190)
Ending balance $ (21,438) $ (17,170) $ (13,617)
Net holding gain/(loss)
Beginning balance $ — $ (2) $ —
Reclassifications to net income — 2 (2)
Ending balance $ — $ — $ (2)
Total AOCI ending balance at December 31 $ (22,854) $ (18,734) $ (14,313)
__________
(a) The accumulated translation adjustments related to an investment in a foreign subsidiary are reclassified to net income upon sale or upon complete
or substantially complete liquidation of the entity and are recognized in Automotive interest income and other income/(loss), net or Financial
Services other income/(loss), net. The adjustment for 2010 primarily relates to the sale of Volvo.
(b) There were losses of $2 million and $1 million attributable to noncontrolling interests in 2011 and 2010, respectively.
(c) Gain/(loss) on cash flow hedges is reclassified from AOCI to income when the hedged item affects earnings and is recognized in Automotive cost of
sales.
(d) These AOCI components are included in the computation of net periodic pension cost. See Note 16 for additional details.
(e) We expect to reclassify existing net losses of $265 million from Accumulated other comprehensive income/(loss) to Automotive cost of sales during
the next twelve months as the underlying exposures are realized.

Ford Motor Company | 2012 Annual Report 133
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
133
NOTE 21. OTHER INCOME/(LOSS)
Automotive Sector
The following table summarizes amounts included in Automotive interest income and other income/(loss), net for the
years ended December 31 (in millions):
2012 2011 2010
Interest income $ 272 $ 387 $ 262
Realized and unrealized gains/(losses) on cash equivalents and marketable securities 85 (77) 125
Gains/(Losses) on the sale of held-for-sale operations, equity and cost investments, business
combinations, and other dispositions 594 436 5
Gains/(Losses) on extinguishment of debt — (60) (844)
Other 234 139 90
Total $ 1,185 $ 825 $ (362)
Financial Services Sector
The following table summarizes the amounts included in Financial Services other income/(loss), net for the years
ended December 31 (in millions):
2012 2011 2010
Interest income (investment-related) $ 70 $ 84 $ 86
Realized and unrealized gains/(losses) on cash equivalents and marketable securities 16 15 22
Gains/(Losses) on the sale of held-for-sale operations, equity and cost investments, business
combinations, and other dispositions (8) 51 9
Gains/(Losses) on extinguishment of debt (14) (68) (139)
Insurance premiums earned, net 105 100 98
Other 200 231 239
Total $ 369 $ 413 $ 315
NOTE 22. SHARE-BASED COMPENSATION
At December 31, 2012, a variety of share-based compensation grants and awards were outstanding for employees
(including officers). All share-based compensation plans are approved by the shareholders.
We have share-based compensation outstanding under two Long-Term Incentive Plans (“LTIP”): the 1998 LTIP and
the 2008 LTIP. No further grants may be made under the 1998 LTIP. All outstanding share-based compensation under
the 1998 LTIP continues to be governed by the terms and conditions of the existing agreements for those grants. Grants
may continue to be made under the 2008 LTIP through April 2018. Under the 2008 LTIP, the number of shares of
Common Stock that may be granted as share-based compensation in any year is limited to 2% of our issued and
outstanding Common Stock as of December 31 of the prior calendar year. Any unused portion is available for later
years. The limit may be increased up to 3% in any year, with a corresponding reduction in shares available for grants in
future years. At December 31, 2012 the number of unused shares carried forward was 157 million shares.
We primarily issue two types of share-based compensation awards, restricted stock units (“RSUs”) and stock options.
For more information visit www.annualreport.ford.com

134 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
134
NOTE 22. SHARE-BASED COMPENSATION (Continued)
We grant performance-based and time-based RSUs to our employees. RSUs provide the recipients with the right to
shares of Common Stock after a restriction period. We measure the fair value using the closing price of our Common
Stock on grant date. Expenses associated with RSUs are recorded in Selling, administrative, and other expense.
Time-based RSUs generally have a graded vesting feature whereby one-third of each grant of RSUs vests after the
first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary.
Expense is recognized using the graded vesting method and is based on the fair value at grant date.
Performance-based RSUs have a performance period (usually one year) followed by a restriction period (usually two
years). Compensation expense for performance-based RSUs is recognized when it is probable and estimable as
measured against the performance metrics. Expense is recognized over the performance and restriction periods, if any,
and is based on the fair value at grant date.
We also grant stock options to our employees. We measure the fair value of our stock options using the Black-
Scholes option-pricing model, using historical volatility and our determination of the expected term. The expected term of
stock options is the time period that the stock options are expected to be outstanding. Historical data are used to estimate
option exercise behaviors and employee termination experience.
Stock options generally have a vesting feature whereby one-third of each grant of stock options are exercisable after
the first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary.
Stock options expire 10 years from the grant date and are expensed in Selling, administrative, and other expenses using
a three-year graded vesting methodology.
We issue new shares of Common Stock upon vesting of RSUs and upon exercise of stock options.
Restricted Stock Units
RSU activity during 2012 was as follows:

Shares
(millions)
Weighted-
Average Grant-
Date Fair Value
Aggregate
Intrinsic Value
(millions)
Outstanding, beginning of year 36.1 $ 7.31
Granted 8.2 12.43
Vested (25.4) 4.28
Forfeited (0.7) 14.12
Outstanding, end of year 18.2 13.18 $ 235.7
RSU-stock expected to vest 18.0 N/A 232.6
Intrinsic value of RSUs is measured by applying the closing stock price as of December 31 to the applicable number
of units. The fair value and intrinsic value of RSUs during 2012, 2011, and 2010 were as follows (in millions, except RSU
per unit amounts):
2012 2011 2010
Fair value
Granted $ 102 $ 123 $ 130
Weighted average for multiple grant dates (per unit) 12.43 14.47 12.69
Vested 109 141 112
Intrinsic value
Vested 329 478 522

Ford Motor Company | 2012 Annual Report 135
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
135
NOTE 22. SHARE-BASED COMPENSATION (Continued)
Compensation cost for RSUs for the years ended December 31 was as follows (in millions):
2012 2011 2010
Compensation cost (a) $ 62 $ 84 $ 138
__________
(a) Net of tax benefit of $36 million, $49 million, and $0 in 2012, 2011, and 2010, respectively.
As of December 31, 2012, there was approximately $48 million in unrecognized compensation cost related to non-
vested RSUs. This expense will be recognized over a weighted average period of 1.8 years.
Stock Options
Stock option activity was as follows:
2012 2011 2010

Shares
(millions)
Weighted-
Average
Exercise
Price
Shares
(millions)
Weighted-
Average
Exercise
Price
Shares
(millions)
Weighted-
Average
Exercise
Price
Outstanding, beginning of year 144.4 $ 10.63 172.5 $ 13.07 225.4 $ 13.36
Granted 6.4 12.43 4.4 14.76 6.7 12.75
Exercised (a) (7.6) 5.70 (8.2) 9.25 (36.5) 8.41
Forfeited (including expirations) (35.2) 16.59 (24.3) 29.18 (23.1) 23.18
Outstanding, end of year 108.0 9.14 144.4 10.63 172.5 13.07
Exercisable, end of year 96.5 8.67 126.8 11.00 143.7 14.63
__________
(a) Exercised at option price ranging from $1.96 to $12.49 during 2012, option price ranging from $1.96 to $16.91 during 2011, and option price ranging
from $1.96 to $16.91 during 2010.
The total grant date fair value of options that vested during the years ended December 31 was as follows (in millions):
2012 2011 2010
Fair value of vested options $ 37 $ 36 $ 37
We have 96.5 million fully-vested stock options, with a weighted-average exercise price of $8.67 and average
remaining term of 4 years. We expect 11.3 million stock options (after forfeitures), with a weighted-average exercise price
of $13.08 and average remaining term of 9 years, to vest in the future.
The intrinsic value for stock options is measured by comparing the awarded option price to the closing stock price at
December 31. The intrinsic value for vested and unvested options during the years ended December 31 was as follows (in
millions):
2012 2011 2010
Intrinsic value of vested options $ 426 $ 257 $ 623
Intrinsic value of unvested options (after forfeitures) 4 74 324

We received approximately $43 million in proceeds from the exercise of stock options in 2012. The tax benefit
realized was de minimis. An equivalent of about $87 million in new issues were used to settle exercised options. For
options exercised during the years ended December 31, 2012, 2011, and 2010, the difference between the fair value of
the Common Stock issued and the respective exercise price was $44 million, $54 million, and $187 million, respectively.
Compensation cost for stock options for the years ended December 31 was as follows (in millions):
2012 2011 2010
Compensation cost (a) $ 26 $ 30 $ 34
__________
(a) Net of tax benefit of $16 million, $17 million, and $0 in 2012, 2011, and 2010, respectively.
For more information visit www.annualreport.ford.com

136 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
136
NOTE 22. SHARE-BASED COMPENSATION (Continued)
As of December 31, 2012, there was about $10 million in unrecognized compensation cost related to non-vested
stock options. This expense will be recognized over a weighted-average period of 1.9 years. A summary of the status of
our non-vested shares and changes during 2012 follows:

Shares
(millions)
Weighted-
Average Grant-
Date Fair Value
Non-vested, beginning of year 17.6 $ 4.49
Granted 6.4 5.88
Vested (12.4) 3.03
Forfeited (0.1) 6.63
Non-vested, end of year 11.5 6.79
The estimated fair value of stock options at the time of grant using the Black-Scholes option-pricing model was as
follows:
2012 2011 2010
Fair value per stock option $ 5.88 $ 8.48 $ 7.21
Assumptions:
Annualized dividend yield 2% —% —%
Expected volatility 53.8% 53.2% 53.4%
Risk-free interest rate 1.6% 3.2% 3.0%
Expected stock option term (in years) 7.2 7.1 6.9
Details on various stock option exercise price ranges are as follows:
Outstanding Options Exercisable Options
Range of Exercise Prices
Shares
(millions)
Weighted-
Average
Life
(years)
Weighted-
Average
Exercise
Price
Shares
(millions)
Weighted-
Average
Exercise
Price
$1.96 – $2.84 19.7 6.2 $ 2.11 19.7 $ 2.11
$5.11 – $8.58 36.2 3.4 7.34 36.2 7.34
$10.11 – $12.98 30.5 4.7 12.52 21.8 12.52
$13.07 – $16.64 21.6 2.6 13.81 18.8 13.66
Total stock options 108.0 96.5

Other Share-Based Awards
Under the 1998 LTIP and 2008 LTIP, we have granted other share-based awards to certain employees. These
awards include restricted stock grants, cash-settled restricted stock units, and stock appreciation rights. These awards
have various vesting criteria which may include service requirements, individual performance targets, and company-wide
performance targets.
Other share-based compensation cost for the years ended December 31 was as follows (in millions):
2012 2011 2010
Compensation cost (a) $ — $ (6) $ 6
__________
(a) Net of tax of $0, $3 million, and $0 in 2012, 2011, and 2010, respectively.

Ford Motor Company | 2012 Annual Report 137
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
137
NOTE 23. EMPLOYEE SEPARATION ACTIONS
As part of our plan to realign our vehicle assembly capacity to operate profitably at the current demand and changing
model mix, we have implemented a number of different employee separation plans. The accounting for employee
separation plans is dependent on the specific design of the plans.
Under certain labor agreements, we are required to pay transitional benefits to our employees who are idled. For
employees who will be temporarily idled, we expense the benefits on an as-incurred basis. For employees who will be
permanently idled, we expense all of the future benefit payments in the period when it is probable that the employees will
be permanently idled. Our reserve balance for these future benefit payments to permanently idled employees takes into
account several factors: the demographics of the population at each affected facility, redeployment alternatives, estimate
of benefits to be paid, and recent experience relative to voluntary redeployments.
We also incur payments to employees for separation actions. The costs of voluntary employee separation actions are
recorded at the time of employee acceptance, unless the acceptance requires explicit approval by the Company. The
costs of involuntary separation programs are accrued when management has approved the program and the affected
employees are identified.
Automotive Sector
Transitional Benefits
Our collective bargaining agreements with the UAW and the CAW require us to pay a portion of wages and benefits
for a specified period of time to employees who are considered permanently idled and who meet certain conditions. We
have established a reserve for employee benefits that we expect to provide under our collective bargaining agreements.
At December 31, 2012 and 2011, this reserve was $66 million and $153 million, respectively.
The balance in the reserve primarily relates to the closure of our St. Thomas Assembly Plant in Canada, which was
announced in the fourth quarter of 2009.
Separation Actions
The following table shows pre-tax charges for hourly and salaried employee separation actions, which are recorded in
Automotive cost of sales and Selling, administrative, and other expenses for the years ended December 31 (in millions):
2012 2011 2010
Ford Europe $ 76 $ 67 $ 56
Ford North America 194 154 110
Ford South America 65 15 3
Ford Asia Pacific Africa 43 38 1
The charges above exclude costs for pension and OPEB.
Financial Services Sector
Separation Actions
We recorded in Selling, administrative, and other expenses pre-tax charges of $7 million, $32 million, and $33 million
for 2012, 2011, and 2010, respectively, for employee separation actions. These charges exclude costs for pension and
OPEB.
For more information visit www.annualreport.ford.com

138 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
138
NOTE 24. INCOME TAXES
In accordance with GAAP, we have elected to recognize accrued interest related to unrecognized tax benefits and tax-
related penalties in the Provision for/(Benefit from) income taxes on our consolidated income statement.
Valuation of Deferred Tax Assets and Liabilities
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 operating loss 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 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.
Components of Income Taxes
Components of income taxes excluding discontinued operations, cumulative effects of changes in accounting
principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax, are as
follows:
2012 2011 2010
Income before income taxes, excluding equity in net results of affiliated companies
accounted for after-tax (in millions)
U.S. $ 6,639 $ 6,043 $ 4,057
Non-U.S. 493 2,138 2,554
Total $ 7,132 $ 8,181 $ 6,611
Provision for/(Benefit from) income taxes (in millions)
Current
Federal $ 4 $ (4) $ (69)
Non-U.S. 270 298 289
State and local 3 (24) (5)
Total current 277 270 215
Deferred
Federal 2,076 (9,785) —
Non-U.S. (126) (1,590) 292
State and local (171) (436) 85
Total deferred 1,779 (11,811) 377
Total $ 2,056 $ (11,541) $ 592
Reconciliation of effective tax rate
U.S. statutory rate 35.0% 35.0 % 35.0%
Non-U.S. tax rates under U.S. rates (1.6) (1.5) (0.1)
State and local income taxes 0.2 1.1 1.5
General business credits 0.3 (1.9) (1.8)
Dispositions and restructurings (1.7) 6.8 (9.5)
U.S. tax on non-U.S. earnings (1.0) (0.8) 0.1
Prior year settlements and claims (1.8) (0.2) (10.0)
Tax-related interest — (0.9) (0.7)
Tax-exempt income (3.9) (3.9) (4.7)
Other 1.7 (2.5) 0.2
Valuation allowances 1.6 (172.3) (1.0)
Effective rate 28.8% (141.1)% 9.0%

Ford Motor Company | 2012 Annual Report 139
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
139
NOTE 24. INCOME TAXES (Continued)
We historically have provided deferred taxes for the presumed repatriation to the United States of earnings from
nearly all non-U.S. subsidiaries. During 2011, we determined that $6.9 billion of these non-U.S. subsidiaries’ undistributed
earnings are now indefinitely reinvested outside the United States. As management has determined that the earnings of
these subsidiaries are not required as a source of funding for U.S. operations, such earnings are not planned to be
distributed to the United States in the foreseeable future. As a result of this change in assertion, deferred tax liabilities
related to undistributed foreign earnings decreased by $63 million.
As of December 31, 2012, $6.6 billion of non-U.S. earnings are considered indefinitely reinvested in operations
outside the United States, for which deferred taxes have not been provided. These earnings have been subject to
significant non-U.S. taxes; repatriation in their entirety would result in a residual U.S. tax liability of about $600 million.

At the end of 2011, our U.S. operations had returned to a position of cumulative profits for the most recent 3-year
period. We concluded that this record of cumulative profitability in recent years, our ten consecutive quarters of pre-tax
operating profits, our successful completion of labor negotiations with the UAW, and our business plan showing continued
profitability provided assurance that our future tax benefits more likely than not would be realized. Accordingly, at year-
end 2011, we released almost all of our valuation allowance against net deferred tax assets for entities in the United
States, Canada, and Spain.
At December 31, 2012, we have retained a valuation allowance against approximately $500 million in North America
related to various state and local operating loss carryforwards that are subject to restrictive rules for future utilization, and
a valuation allowance totaling $1.4 billion primarily against deferred tax assets for our South American operations.
Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows (in millions):

December 31,
2012
December 31,
2011
Deferred tax assets
Employee benefit plans $ 8,079 $ 8,189
Net operating loss carryforwards 2,417 3,163
Tax credit carryforwards 4,973 4,534
Research expenditures 2,321 2,297
Dealer and customer allowances and claims 1,820 1,731
Other foreign deferred tax assets 1,790 694
Allowance for credit losses 146 194
All other 1,176 1,483
Total gross deferred tax assets 22,722 22,285
Less: valuation allowances (1,923) (1,545)
Total net deferred tax assets 20,799 20,740
Deferred tax liabilities
Leasing transactions 1,145 932
Deferred income 2,094 2,098
Depreciation and amortization (excluding leasing transactions) 1,561 1,659
Finance receivables 616 551
Other foreign deferred tax liabilities 379 360
All other 289 711
Total deferred tax liabilities 6,084 6,311
Net deferred tax assets/(liabilities) $ 14,715 $ 14,429
Operating loss carryforwards for tax purposes were $6.9 billion at December 31, 2012, resulting in a deferred tax
asset of $2.4 billion. A substantial portion of these losses begin to expire in 2029; the remaining losses will begin to expire
in 2018. Tax credits available to offset future tax liabilities are $5 billion. A substantial portion of these credits have a
remaining carryforward period of 10 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 other circumstances.
For more information visit www.annualreport.ford.com

140 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
140
NOTE 24. INCOME TAXES (Continued)
Other
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years listed
(in millions):
2012 2011
Beginning balance $ 1,721 $ 966
Increase – tax positions in prior periods 84 1,045
Increase – tax positions in current period 19 59
Decrease – tax positions in prior periods (246) (134)
Settlements (31) (186)
Lapse of statute of limitations (14) (21)
Foreign currency translation adjustment 14 (8)
Ending balance $ 1,547 $ 1,721
The amount of unrecognized tax benefits at December 31, 2012 and 2011 that would affect the effective tax rate if
recognized was $1.2 billion and $1.2 billion, respectively.
Examinations by tax authorities have been completed through 2004 in Germany, and through 2007 in Canada, the
United States, and the United Kingdom. Although examinations have been completed in these jurisdictions, limited
transfer pricing disputes exist for years dating back to 1996.
We recorded in our consolidated income statement approximately $9 million, $77 million, and $45 million in tax-
related interest income for the years ended December 31, 2012, 2011, and 2010. As of December 31, 2012 and 2011, we
had recorded a net payable of $120 million and $171 million, respectively, for tax-related interest.

Ford Motor Company | 2012 Annual Report 141
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
141
NOTE 25. DISPOSITIONS AND OTHER CHANGES IN INVESTMENTS IN AFFILIATES
We classify assets and liabilities as held for sale (“disposal group”) when management, having the authority to
approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal
group is available for immediate sale in its present condition. We also consider whether an active program to locate a
buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation
to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant
changes to the plan will be made or that the plan will be withdrawn. We classify a disposal group as a discontinued
operation when the criteria to be classified as held for sale have been met and we will not have any significant
involvement with the disposal group after the sale.
When we classify a disposal group as held for sale, we test for impairment. An impairment charge is recognized when
the carrying value of the disposal group exceeds the estimated fair value, less transaction costs.
We aggregate the assets and liabilities of all held-for-sale disposal groups on the balance sheet for the period in
which the disposal group is held for sale. To provide comparative balance sheets, we also aggregate the assets and
liabilities for significant held-for-sale disposal groups on the prior-period balance sheet.
Automotive Sector
Dispositions
Automotive Components Holdings, LLC (“ACH”). On June 30, 2012, ACH completed the sale of its automotive
lighting business located at its Ohio facilities to Ventra Sandusky, a Flex-N-Gate group affiliate. Ventra Sandusky will
continue to supply Ford with automotive lighting components and service parts from the Sandusky and Bellevue facilities.
As a result of this transaction, we recognized a second quarter pre-tax loss of $77 million reported in Automotive interest
income and other income/(loss), net. Additionally, we assumed a contractual obligation of $15 million associated with the
pricing of products to be purchased over the four and one-half-year term of the related purchase and supply agreement
with Ventra Sandusky.
On June 1, 2012, ACH completed the sale of its automotive interior trim components business located at its Saline,
Michigan plant to Faurecia. Faurecia will continue to supply Ford with interior trim components from the Saline facility as
well as other Faurecia facilities. As a result of this transaction, we recognized a second quarter pre-tax loss of $96 million
reported in Automotive interest income and other income/(loss), net. Additionally, we assumed contractual obligations of
$182 million associated with the pricing of products to be purchased over the six-year terms of the related purchase and
supply agreements with Faurecia and an affiliate of Faurecia.
Ford Russia. During the second quarter of 2011, we signed an agreement with Sollers OJSC (“Sollers”) establishing
FordSollers, a 50/50 joint venture in Russia. On October 1, 2011, we contributed our wholly-owned operations in Russia,
consisting primarily of a manufacturing plant near St. Petersburg and access to our Russian dealership network, to the
joint venture. Additionally, we entered into an agreement with FordSollers for the granting of an exclusive right to
manufacture, assemble, and distribute certain Ford-brand vehicles in Russia through the licensing of certain trademarks
and intellectual property rights. Sollers contributed two production facilities. The joint venture is engaged in the
manufacturing and distribution of a range of Ford passenger cars and light commercial vehicles in Russia. As part of our
ongoing relationship with FordSollers, we supply parts and other vehicle components to the joint venture and receive a
royalty of 5% of the joint venture’s net sales revenue.
Upon contribution of our wholly-owned operations in Russia to the joint venture in exchange for a 50% equity interest,
we deconsolidated the assets and liabilities, recorded an equity method investment in FordSollers at its fair value of
$364 million, and recognized a pre-tax gain of $178 million attributable to the remeasurement to fair value of the retained
investment. In addition, we received cash proceeds of $174 million, recorded a note receivable in the amount of
$133 million, recorded a payable of $27 million, and recognized loss in accumulated foreign currency adjustment of
$57 million. The total pre-tax gain of $401 million is reported in Automotive interest income and other income/(expense),
net.
For more information visit www.annualreport.ford.com

142 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
142
NOTE 25. DISPOSITIONS AND OTHER CHANGES IN INVESTMENTS IN AFFILIATES (Continued)
We measured the fair value of our equity interest using the income approach. We used cash flows that were
developed jointly by Ford and Sollers. The significant assumptions used in this approach included:
• Projected growth in the Russian automobile market;
• Reduced import duties on certain auto parts; and
• A discount rate of 16% based on an appropriate weighted average cost of capital, adjusted for perceived business
risks related to regulatory concerns, foreign exchange volatility, execution risk, and risk associated with the
Russian automotive industry.
We, along with Sollers, pledged 100% of the shares in the joint venture to the State Corporation Bank for Development
and Foreign Economic Operations – Vnesheconombank (“VEB”) as collateral securing the joint venture’s debt.
Other Changes in Investments in Affiliates
AAI. AAI is a 50/50 joint venture between Ford and Mazda that operates an automobile assembly plant in Flat Rock,
Michigan. In September 2011, we signed a Memorandum of Understanding (“MOU”) with Mazda to change our future
business relationship with respect to AAI. Pursuant to the terms of the MOU, in the third quarter of 2012 the assembly
plant ceased production of Mazda vehicles and on September 1, 2012 we acquired full management control of AAI.
In exchange, beginning on September 1, 2015, for a three year period, we have granted to Mazda a put option to sell,
and received a call option to purchase from Mazda, the 50% equity interest in AAI that is held by Mazda (“the Option”).
The Option is exercisable at a price of $338 million as determined by a formula based on AAI’s final December 31, 2012
closing balance sheet.
The change in management control resulted in a business combination on September 1, 2012 and we consolidated
AAI under the acquisition method of accounting. We measured the fair value of AAI using the income approach and used
cash flows that reflect our approved business plan for AAI. We assumed a discount rate of 10% based on an appropriate
weighted average cost of capital adjusted for perceived business risks. The fair value of 100% of AAI’s identifiable net
assets was $868 million, as shown below (in millions):
September 1,
2012
Assets
Cash and cash equivalents $ 191
Marketable securities 321
Receivables 202
Inventories 99
Property, plant and equipment 487
Deferred tax assets 119
Total assets of AAI (a) $ 1,419
Liabilities
Trade payables $ 150
Other payables 185
Accrued liabilities 41
Debt payable to Ford 51
Deferred tax liabilities 124
Total liabilities of AAI (a) $ 551
___________
(a) As of September 1, 2012, intercompany assets of $121 million and intercompany liabilities of $306 million have been eliminated in both
consolidated and sector balance sheets.
As part of the business combination, the Option was recorded as a redeemable noncontrolling interest in the
mezzanine section of our balance sheet at the then fair value of $319 million (see Note 19). This represents the
discounted cash flow of the option price using Ford’s incremental borrowing rate of 2.75%.
As a result, the fair value attributable to our investment in AAI at September 1, 2012 was $549 million. The excess of
this fair value over the carrying value of our previously recorded 50% unconsolidated equity interest resulted in a third
quarter 2012 pre-tax gain of $155 million in Automotive interest income and other income/(loss), net.
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
142
NOTE 25. DISPOSITIONS AND OTHER CHANGES IN INVESTMENTS IN AFFILIATES (Continued)
We measured the fair value of our equity interest using the income approach. We used cash flows that were
developed jointly by Ford and Sollers. The significant assumptions used in this approach included:
• Projected growth in the Russian automobile market;
• Reduced import duties on certain auto parts; and
• A discount rate of 16% based on an appropriate weighted average cost of capital, adjusted for perceived business
risks related to regulatory concerns, foreign exchange volatility, execution risk, and risk associated with the
Russian automotive industry.
We, along with Sollers, pledged 100% of the shares in the joint venture to the State Corporation Bank for Development
and Foreign Economic Operations – Vnesheconombank (“VEB”) as collateral securing the joint venture’s debt.
Other Changes in Investments in Affiliates
AAI. AAI is a 50/50 joint venture between Ford and Mazda that operates an automobile assembly plant in Flat Rock,
Michigan. In September 2011, we signed a Memorandum of Understanding (“MOU”) with Mazda to change our future
business relationship with respect to AAI. Pursuant to the terms of the MOU, in the third quarter of 2012 the assembly
plant ceased production of Mazda vehicles and on September 1, 2012 we acquired full management control of AAI.
In exchange, beginning on September 1, 2015, for a three year period, we have granted to Mazda a put option to sell,
and received a call option to purchase from Mazda, the 50% equity interest in AAI that is held by Mazda (“the Option”).
The Option is exercisable at a price of $338 million as determined by a formula based on AAI’s final December 31, 2012
closing balance sheet.
The change in management control resulted in a business combination on September 1, 2012 and we consolidated
AAI under the acquisition method of accounting. We measured the fair value of AAI using the income approach and used
cash flows that reflect our approved business plan for AAI. We assumed a discount rate of 10% based on an appropriate
weighted average cost of capital adjusted for perceived business risks. The fair value of 100% of AAI’s identifiable net
assets was $868 million, as shown below (in millions):
September 1,
2012
Assets
Cash and cash equivalents $ 191
Marketable securities 321
Receivables 202
Inventories 99
Property, plant and equipment 487
Deferred tax assets 119
Total assets of AAI (a) $ 1,419
Liabilities
Trade payables $ 150
Other payables 185
Accrued liabilities 41
Debt payable to Ford 51
Deferred tax liabilities 124
Total liabilities of AAI (a) $ 551
___________
(a) As of September 1, 2012, intercompany assets of $121 million and intercompany liabilities of $306 million have been eliminated in both
consolidated and sector balance sheets.
As part of the business combination, the Option was recorded as a redeemable noncontrolling interest in the
mezzanine section of our balance sheet at the then fair value of $319 million (see Note 19). This represents the
discounted cash flow of the option price using Ford’s incremental borrowing rate of 2.75%.
As a result, the fair value attributable to our investment in AAI at September 1, 2012 was $549 million. The excess of
this fair value over the carrying value of our previously recorded 50% unconsolidated equity interest resulted in a third
quarter 2012 pre-tax gain of $155 million in Automotive interest income and other income/(loss), net.

Ford Motor Company | 2012 Annual Report 143
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
143
NOTE 25. DISPOSITIONS AND OTHER CHANGES IN INVESTMENTS IN AFFILIATES (Continued)
CFMA. Our Chinese joint venture CFMA, whose members include Chongqing Changan Automobile Co., Ltd.
(“Changan”) (50% partner), Mazda (15% partner) and us (35% partner), produces and distributes in China an expanding
variety of Ford passenger car models, as well as Mazda and Volvo models. On November 30, 2012, CFMA transferred its
Nanjing operations to Changan Mazda Automobile Ltd. (“CMA”), and CFMA was renamed CAF. Immediately after the
split, Ford and Mazda fully exchanged their respective interest in the two joint ventures. As a result, Ford now owns a
50% interest in CAF and Mazda owns a 50% interest in CMA; Changan remains a 50% partner in each joint venture.
CMA will continue to assemble vehicles for CAF as a contract manufacturer until 2014.
Upon the exchange, we de-recognized the historical carrying value of our equity investment in CMA of $115 million,
increased our equity investment in CAF by the fair value of the interest received of $740 million, and recognized a fourth
quarter 2012 pre-tax gain of $625 million in Automotive interest income and other income/(expense), net.
Financial Services Sector
Dispositions
Asia Pacific Markets. In 2011, Ford Credit recorded foreign currency translation adjustments of $60 million (including
$72 million recorded in the fourth quarter of 2011), related to the strategic decision to exit retail and wholesale financing in
certain Asia Pacific markets. These adjustments decreased Accumulated other comprehensive income (foreign currency
translation) and increased pre-tax income, which was recorded to Financial Services other income/loss, net.
For more information visit www.annualreport.ford.com

144 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
144
NOTE 26. CAPITAL STOCK AND AMOUNTS PER SHARE
All general voting power is vested in the holders of Common Stock and Class B Stock. Holders of our Common Stock
have 60% of the general voting power and holders of our Class B Stock are entitled to such number of votes per share as
will give them the remaining 40%. Shares of Common Stock and Class B Stock share equally in dividends when and as
paid, with stock dividends payable in shares of stock of the class held.
If liquidated, each share of Common Stock will be entitled to the first $0.50 available for distribution to holders of
Common Stock and Class B Stock, each share of Class B Stock will be entitled to the next $1.00 so available, each share
of Common Stock will be entitled to the next $0.50 so available and each share of Common and Class B Stock will be
entitled to an equal amount thereafter.
We present both basic and diluted earnings per share (“EPS”) amounts in our financial reporting. EPS is computed
independently each quarter for income from continuing operations, income from discontinued operations, and net income;
as a result, the sum of per-share amounts from continuing operations and discontinued operations may not equal the total
per-share amount for net earnings. Basic EPS excludes dilution and is computed by dividing income available to
Common and Class B Stock holders by the weighted-average number of Common and Class B Stock outstanding for the
period. Diluted EPS reflects the maximum potential dilution that could occur if all of our equity-linked securities and other
share-based compensation, including stock options, warrants, and rights under our convertible notes, were
exercised. Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.
Warrants
As part of the transfer of assets to the UAW VEBA Trust on December 31, 2009, we issued warrants to purchase
362,391,305 shares of Ford Common Stock at an exercise price of $9.20 per share, which was subsequently adjusted to
$9.01 per share. On April 6, 2010, the UAW VEBA Trust sold all such warrants to parties unrelated to us. In connection
with the sale, the terms of the warrants were modified to provide for, among other things, net share settlement as the only
permitted settlement method thereby eliminating full physical settlement as an option, and elimination of certain of the
transfer restrictions applicable to the underlying stock. We received no proceeds from the offering.
The warrants expired by their terms on January 1, 2013. By the deadline for exercise of December 31, 2012,
362 million warrants were exercised on a net share settlement basis. This resulted in the issuance of 106 million shares
of Common Stock, of which 72 million shares were issued on January 8, 2013 in settlement of exercises that took place
during the last four trading days of 2012. Because we were obligated in 2012 to issue the shares, all 106 million shares
issued for warrant exercises are reflected on our consolidated and sector balance sheets as being outstanding at
December 31, 2012. No warrants are presently outstanding.
Dividend Declaration
On January 10, 2013, our Board of Directors declared a first quarter 2013 dividend on our Common and Class B
Stock of $0.10 per share payable on March 1, 2013 to stockholders of record on January 30, 2013.
Effect of Dividends on Convertible Notes
As a result of dividends totaling $0.20 per share ($0.05 per share in each quarter of 2012) paid on our Common
Stock, the conversion rates for our outstanding convertible notes (see Note 17) have been adjusted pursuant to their
terms as follows:
Conversion Rate –
Shares of Ford Common Stock for Each $1,000 Principal Amount
After Adjustment After Adjustment
In Effect Effective Effective
Security At January 1, 2012 August 1, 2012 November 9, 2012
4.25% Senior Convertible Notes Due November 15, 2016 107.5269 shares 109.3202 shares 109.8554 shares
After Adjustment After Adjustment
In Effect Effective Effective
At January 1, 2012 August 6, 2012 December 15, 2012
4.25% Senior Convertible Notes Due December 15, 2036 108.6957 shares 110.5085 shares 111.0495 shares

Ford Motor Company | 2012 Annual Report 145
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
145
NOTE 26. CAPITAL STOCK AND AMOUNTS PER SHARE (Continued)
Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock
Basic and diluted income per share were calculated using the following (in millions):
2012 2011 2010
Basic and Diluted Income Attributable to Ford Motor Company
Basic income from continuing operations $ 5,665 $ 20,213 $ 6,561
Effect of dilutive 2016 Convertible Notes (a) 46 64 173
Effect of dilutive 2036 Convertible Notes (a) 2 2 37
Effect of dilutive Trust Preferred Securities (a) (b) — 40 182
Diluted income from continuing operations $ 5,713 $ 20,319 $ 6,953
Basic and Diluted Shares (c)
Basic shares (average shares outstanding) 3,815 3,793 3,449
Net dilutive options and warrants 101 187 217
Dilutive 2016 Convertible Notes 96 95 291
Dilutive 2036 Convertible Notes 3 3 58
Dilutive Trust Preferred Securities (b) — 33 163
Diluted shares 4,015 4,111 4,178
__________
(a) As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in income or loss that would result from
the assumed conversion.
(b) The Trust Preferred Securities, which were convertible into Ford Common Stock, were fully redeemed on March 15, 2011.
(c) Includes (i) 53 million in average net dilutive shares for 2012 for warrants outstanding prior to exercise and (ii) 9 million in average basic shares
outstanding for 2012 for shares issued for warrants exercised. In total, by the deadline for exercise of December 31, 2012, 362 million warrants
were exercised on a net share settlement basis, resulting in the issuance of 106 million shares.
For more information visit www.annualreport.ford.com

146 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
146
NOTE 27. OPERATING CASH FLOWS
The reconciliation of Net income attributable to Ford Motor Company to Net cash provided by/(used in) operating
activities for the years ended December 31 was as follows (in millions):
2012
Automotive
Financial
Services Total (a)
Net income attributable to Ford Motor Company $ 4,466 $ 1,199 $ 5,665
Depreciation and special tools amortization 3,655 2,524 6,179
Other amortization 43 (1,018) (975)
Provision for credit and insurance losses 6 86 92
Net (gain)/loss on extinguishment of debt — 14 14
Net (gain)/loss on investment securities (89) (16) (105)
Dividends in excess of equity investment earnings 20 — 20
Foreign currency adjustments (121) 5 (116)
Net (gain)/loss on sale of businesses 183 4 187
Gain on changes in investments in affiliates (780) — (780)
Stock compensation 134 6 140
Cash changes in operating assets and liabilities were as follows:
Provision for deferred income taxes 1,444 545 1,989
Decrease/(Increase) in intersector receivables/payables 899 (899) —
Decrease/(Increase) in accounts receivable and other assets (2,335) 713 (1,622)
Decrease/(Increase) in inventory (1,401) — (1,401)
Increase/(Decrease) in accounts payable and accrued and other liabilities (520) 1,005 485
Other 662 (211) 451
Net cash provided by/(used in) operating activities $ 6,266 $ 3,957 $ 10,223
2011
Automotive
Financial
Services Total (a)
Net income attributable to Ford Motor Company $ 18,447 $ 1,766 $ 20,213
Depreciation and special tools amortization 3,533 1,843 5,376
Other amortization 80 (1,200) (1,120)
Provision for credit and insurance losses 2 (33) (31)
Net (gain)/loss on extinguishment of debt 60 68 128
Net (gain)/loss on investment securities 76 6 82
Equity investment earnings in excess of dividends received (169) — (169)
Foreign currency adjustments (35) (2) (37)
Net (gain)/loss on sale of businesses (410) (11) (421)
Stock compensation 163 8 171
Cash changes in operating assets and liabilities were as follows:
Provision for deferred income taxes (11,566) 495 (11,071)
Decrease/(Increase) in intersector receivables/payables 642 (642) —
Decrease/(Increase) in accounts receivable and other assets (1,658) 722 (936)
Decrease/(Increase) in inventory (367) — (367)
Increase/(Decrease) in accounts payable and accrued and other liabilities (168) (450) (618)
Other 738 (165) 573
Net cash provided by/(used in) operating activities $ 9,368 $ 2,405 $ 11,773
_________
(a) See Note 1 for a reconciliation of the sum of the sector net cash provided by/(used in) operating activities to the consolidated net cash provided by/
(used in) operating activities.

Ford Motor Company | 2012 Annual Report 147
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
147
NOTE 27. OPERATING CASH FLOWS (Continued)
2010
Automotive
Financial
Services Total (a)
Net income attributable to Ford Motor Company $ 4,690 $ 1,871 $ 6,561
Depreciation and special tools amortization 3,876 2,024 5,900
Other amortization 703 (1,019) (316)
Provision for credit and insurance losses 51 (216) (165)
Net (gain)/loss on extinguishment of debt 844 139 983
Net (gain)/loss on investment securities (102) 19 (83)
Net (gain)/loss on pension and OPEB curtailment (29) — (29)
Equity investment earnings in excess of dividends received (198) — (198)
Foreign currency adjustments (347) (1) (348)
Net (gain)/loss on sale of businesses 23 (5) 18
Stock option expense 32 2 34
Cash changes in operating assets and liabilities were as follows:
Provision for deferred income taxes 300 (266) 34
Decrease/(Increase) in intersector receivables/payables 321 (321) —
Decrease/(Increase) in accounts receivable and other assets (988) 1,683 695
Decrease/(Increase) in inventory (903) — (903)
Increase/(Decrease) in accounts payable and accrued and other liabilities (1,311) 475 (836)
Other (599) (587) (1,186)
Net cash provided by/(used in) operating activities $ 6,363 $ 3,798 $ 10,161
_________
(a) See Note 1 for a reconciliation of the sum of the sector net cash provided by/(used in) operating activities to the consolidated net cash provided by/
(used in) operating activities.
Cash paid/(received) for interest and income taxes for continuing operations for the years ended December 31 was as
follows (in millions):
2012 2011 2010
Interest
Automotive sector $ 693 $ 1,012 $ 1,336
Financial Services sector 3,003 3,357 4,018
Total interest paid $ 3,696 $ 4,369 $ 5,354
Income taxes $ 344 $ 268 $ 73
For more information visit www.annualreport.ford.com

148 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
148
NOTE 28. SEGMENT INFORMATION
Our operating activity consists of two operating sectors, Automotive and Financial Services. Segment selection is
based on the organizational structure we use to evaluate performance and make decisions on resource allocation, as well
as availability and materiality of separate financial results consistent with that structure.
Automotive Sector
Our Automotive sector is divided into four segments: 1) Ford North America, 2) Ford South America, 3) Ford Europe,
and 4) Ford Asia Pacific Africa. Included in each segment, described below, are the associated costs to develop,
manufacture, distribute, and service vehicles and parts.
Ford North America segment primarily includes the sale of Ford- and Lincoln-brand vehicles and related service parts
and accessories in North America (the United States, Canada, and Mexico).
Ford South America segment primarily includes the sale of Ford-brand vehicles and related service parts and
accessories in South America.
Ford Europe segment primarily includes the sale of Ford-brand vehicles, components, and related service parts and
accessories in Europe, Turkey, and Russia.
Ford Asia Pacific Africa segment primarily includes the sale of Ford-brand vehicles and related service parts and
accessories in the Asia Pacific region and South Africa.
Revenue from Ford-brand and Jiangling Motors Corporation-brand vehicles produced and distributed by our
unconsolidated affiliates are not included in our revenue.
In August 2010 we completed the sale of Volvo. Results for Volvo are reported as special items in 2010.
The Other Automotive component of the Automotive sector consists primarily of centrally-managed net interest
expense and related fair market value adjustments.
Transactions among Automotive segments generally are presented on a “where-sold,” absolute-cost basis, which
reflects the profit/(loss) on the sale within the segment making the ultimate sale to an external entity. This presentation
generally eliminates the effect of legal entity transfer prices within the Automotive sector for vehicles, components, and
product engineering.

Ford Motor Company | 2012 Annual Report 149
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
149
NOTE 28. SEGMENT INFORMATION (Continued)
Financial Services Sector
The Financial Services sector includes the following segments: 1) Ford Credit, and 2) Other Financial Services. Ford
Credit provides vehicle-related financing, leasing, and insurance. Other Financial Services includes a variety of
businesses including holding companies, real estate, and the financing and leasing of some Volvo vehicles in Europe.
Special Items
Special items are presented as a separate reconciling item to reconcile segment results to consolidated results of the
Company. These special items include (i) personnel and dealer-related items stemming from our efforts to match
production capacity and cost structure to market demand and changing model mix, and (ii) certain infrequent significant
items that we generally do not consider to be indicative of our ongoing operating activities. This presentation reflects the
fact that management excludes these items from its review of the results of the operating segments for purposes of
measuring segment profitability and allocating resources.
For more information visit www.annualreport.ford.com

150 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
150
NOTE 28. SEGMENT INFORMATION (Continued)
Key operating data for our business segments for the years ended or at December 31 were as follows (in millions):
Automotive Sector
Operating Segments Reconciling Items

Ford
North
America
Ford
South
America
Ford
Europe
Ford Asia
Pacific
Africa
Other
Automotive
Special
Items Total
2012
Revenues
External customer $ 79,943 $ 10,080 $ 26,546 $ 9,998 $ — $ — $ 126,567
Intersegment 593 — 602 — — — 1,195
Income
Income before income taxes 8,343 213 (1,753) (77) (470) (246) 6,010
Other disclosures:
Depreciation and special tools amortization 1,964 256 1,132 303 — — 3,655
Amortization of intangibles 9 — — 1 — — 10
Interest expense — — — — 713 — 713
Interest income 72 — — — 200 — 272
Cash outflow for capital expenditures 3,150 668 1,112 529 — — 5,459
Unconsolidated affiliates
Equity in net income/(loss) 127 — 113 315 — — 555
Total assets at December 31 51,699 6,819 20,305 7,635 — — 86,458
2011
Revenues
External customer $ 75,022 $ 10,976 $ 33,758 $ 8,412 $ — $ — $ 128,168
Intersegment 244 — 836 — — — 1,080
Income
Income before income taxes 6,191 861 (27) (92) (601) (82) 6,250
Other disclosures:
Depreciation and special tools amortization 1,769 265 1,225 274 — — 3,533
Amortization of intangibles 9 2 — 1 — — 12
Interest expense — — — — 817 — 817
Interest income 60 — — — 327 — 387
Cash outflow for capital expenditures 2,164 581 1,034 493 — — 4,272
Unconsolidated affiliates
Equity in net income/(loss) 179 — 61 239 — — 479
Total assets at December 31 46,038 6,878 19,737 6,133 — — 78,786
2010
Revenues
External customer $ 64,428 $ 9,905 $ 29,486 $ 7,381 $ — $ 8,080 $ 119,280
Intersegment 674 — 732 — — 13 1,419
Income
Income before income taxes 5,409 1,010 182 189 (1,493) (1,151) 4,146
Other disclosures:
Depreciation and special tools amortization 2,058 247 1,199 262 — 110 3,876
Amortization of intangibles 9 77 — 1 — 10 97
Interest expense — — — — 1,807 — 1,807
Interest income 47 — — — 215 — 262
Cash outflow for capital expenditures 2,127 364 971 467 — 137 4,066
Unconsolidated affiliates
Equity in net income/(loss) 155 — 128 242 — 1 526
Total assets at December 31 29,955 6,623 22,260 5,768 — — 64,606

Ford Motor Company | 2012 Annual Report 151
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
151
NOTE 28. SEGMENT INFORMATION (Continued)
Financial Services Sector Total Company
Operating Segments
Reconciling
Item

Ford
Credit
Other
Financial
Services Elims Total Elims (a) Total
2012
Revenues
External customer $ 7,422 $ 263 $ — $ 7,685 $ — $ 134,252
Intersegment 460 4 — 464 (1,659) —
Income
Income before income taxes 1,697 13 — 1,710 — 7,720
Other disclosures:
Depreciation and special tools amortization 2,499 25 — 2,524 — 6,179
Amortization of intangibles — — — — — 10
Interest expense 3,027 88 — 3,115 — 3,828
Interest income (b) 69 1 — 70 — 342
Cash outflow for capital expenditures 18 11 — 29 — 5,488
Unconsolidated affiliates
Equity in net income/(loss) 33 — — 33 — 588
Total assets at December 31 105,744 7,698 (7,282) 106,160 (2,064) 190,554
2011
Revenues
External customer $ 7,764 $ 332 $ — $ 8,096 $ — $ 136,264
Intersegment 557 5 — 562 (1,642) —
Income
Income before income taxes 2,404 27 — 2,431 — 8,681
Other disclosures:
Depreciation and special tools amortization 1,813 30 — 1,843 — 5,376
Amortization of intangibles — — — — — 12
Interest expense 3,507 107 — 3,614 — 4,431
Interest income (b) 83 1 — 84 — 471
Cash outflow for capital expenditures 15 6 — 21 — 4,293
Unconsolidated affiliates
Equity in net income/(loss) 21 — — 21 — 500
Total assets at December 31 100,242 8,634 (7,302) 101,574 (2,012) 178,348
2010
Revenues
External customer $ 9,357 $ 317 $ — $ 9,674 $ — $ 128,954
Intersegment 469 10 — 479 (1,898) —
Income
Income before income taxes 3,054 (51) — 3,003 — 7,149
Other disclosures:
Depreciation and special tools amortization 1,989 35 — 2,024 — 5,900
Amortization of intangibles — — — — — 97
Interest expense 4,222 123 — 4,345 — 6,152
Interest income (b) 86 — — 86 — 348
Cash outflow for capital expenditures 13 13 — 26 — 4,092
Unconsolidated affiliates
Equity in net income/(loss) 12 — — 12 — 538
Total assets at December 31 101,696 8,708 (7,134) 103,270 (3,189) 164,687
__________
(a) Includes intersector transactions occurring in the ordinary course of business and deferred tax netting.
(b) Interest income reflected on this line for Financial Services sector is non-financing related. Interest income in the normal course of business for
Financial Services sector is reported in Financial Services revenues.
For more information visit www.annualreport.ford.com

152 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
152
NOTE 29. GEOGRAPHIC INFORMATION
The following table includes information for both Automotive and Financial Services sectors for the years ended
December 31 (in millions):
2012 2011 2010
Revenues
Long-Lived
Assets (a) Revenues
Long-Lived
Assets (a) Revenues
Long-Lived
Assets (a)
North America
United States $ 76,418 $ 23,987 $ 71,165 $ 19,311 $ 63,318 $ 17,423
Canada 9,523 2,674 9,525 2,525 9,351 3,456
Mexico/Other 1,406 1,991 1,436 1,420 1,537 1,411
Total North America 87,347 28,652 82,126 23,256 74,206 22,290
Europe
United Kingdom 9,214 1,668 9,486 1,721 9,172 1,817
Germany 8,281 2,770 8,717 3,060 7,139 3,395
Italy 1,633 3 3,038 3 3,656 3
France 1,964 183 2,806 102 2,754 105
Spain 1,735 1,500 2,189 1,185 2,235 1,211
Russia — — 1,913 — 2,041 228
Belgium 892 824 1,288 735 1,539 964
Other 4,199 28 5,843 28 8,238 33
Total Europe 27,918 6,976 35,280 6,834 36,774 7,756
All Other 18,987 4,350 18,858 3,763 17,974 3,526
Total Company $ 134,252 $ 39,978 $ 136,264 $ 33,853 $ 128,954 $ 33,572
__________
(a) Includes Net property from our consolidated balance sheet and Financial Services Net investment in operating leases from the sector balance
sheet.

Ford Motor Company | 2012 Annual Report 153
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
153
NOTE 30. SELECTED QUARTERLY FINANCIAL DATA (unaudited)
Selected financial data by calendar quarter were as follows (in millions, except per share amounts):
2012 2011
Automotive Sector
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Revenues $ 30,525 $ 31,328 $ 30,247 $ 34,467 $ 31,038 $ 33,476 $ 31,043 $ 32,611
Income before income taxes 1,582 1,148 1,858 1,422 2,070 2,004 1,241 935
Financial Services Sector
Revenues 1,920 1,883 1,925 1,957 2,076 2,051 2,004 1,965
Income before income taxes 456 447 388 419 706 602 605 518
Total Company
Income before income taxes 2,038 1,595 2,246 1,841 2,776 2,606 1,846 1,453
Amounts Attributable to Ford Motor Company Common and Class B Shareholders
Net income 1,396 1,040 1,631 1,598 2,551 2,398 1,649 13,615
Common and Class B per share from income from continuing operations before cumulative effects of changes in accounting principles
Basic 0.37 0.27 0.43 0.42 0.68 0.63 0.43 3.58
Diluted 0.35 0.26 0.41 0.40 0.61 0.59 0.41 3.40
Certain of the quarterly results identified above include material unusual or infrequently occurring items as follows:
The pre-tax income of $1.8 billion in the fourth quarter of 2012 includes 1) a $250 million unfavorable item related to
the U.S. salaried lump sum pension buyout program (see Note 16), and 2) a $625 million gain related to the
reorganization of our equity investment in CFMA (see Note 25).
The pre-tax income of $1.5 billion in the fourth quarter of 2011 includes a $401 million gain related to the sale of our
Russian operations to the newly-created FordSollers joint venture, which began operations on October 1, 2011.
The net income attributable to Ford Motor Company of $13.6 billion in the fourth quarter of 2011 includes a
$12.4 billion favorable item, reflecting the release of almost all of the valuation allowance against our net deferred tax
assets.
For more information visit www.annualreport.ford.com

154 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
154
NOTE 31. COMMITMENTS AND CONTINGENCIES
Commitments and contingencies consist primarily of guarantees and indemnifications, litigation and claims, and
warranty.
Guarantees are recorded at fair value at the inception of the guarantee. Litigation and claims are accrued when
losses are deemed probable and reasonably estimable.
Estimated warranty costs and additional service actions are accrued for at the time the vehicle is sold to a dealer,
including costs for basic warranty coverage on vehicles sold, product recalls, and other customer service actions. Fees or
premiums for the issuance of extended service plans are recognized in income over the contract period in proportion to
the costs expected to be incurred in performing services under the contract.
Guarantees
At December 31, 2012 and December 31, 2011, the following guarantees and indemnifications were issued and
outstanding:
Guarantees related to affiliates and third parties. We guarantee 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 2019, and guarantees will terminate on payment and/or cancellation of the
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 the third party amounts paid by us
under the guarantee. However, our ability to enforce these rights is sometimes stayed until the guaranteed party is paid in
full, and may be limited in the event of insolvency of the third party or other circumstances. The maximum potential
payments under guarantees and the carrying value of recorded liabilities related to guarantees were as follows
(in millions):

December 31,
2012
December 31,
2011
Maximum potential payments $ 409 $ 444
Carrying value of recorded liabilities related to guarantees 17 31
We regularly review our performance risk under these guarantees, which has resulted in no changes to our initial
valuations.
Indemnifications. 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. These indemnifications might
include and are not limited to claims relating to any of the following: environmental, tax, and shareholder matters;
intellectual property rights; power generation contracts; governmental regulations and employment-related matters;
dealers, supplier, and other commercial contractual relationships; and financial matters, such as securitizations.
Performance under these indemnities generally would be triggered by a breach of terms of the contract or by a third-party
claim. We also are party to numerous indemnifications which do not limit potential payment; therefore, we are unable to
estimate a maximum amount of potential future payments that could result from claims made under these indemnities.
Litigation and Claims
Various legal actions, proceedings, and claims (generally, “matters”) are pending or may be instituted or asserted
against us. These include but are not limited to matters arising out of alleged defects in our products; product warranties;
governmental regulations relating to safety, emissions, and fuel economy or other matters; government incentives; tax
matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer, supplier,
and other contractual relationships; intellectual property rights; environmental matters; shareholder or investor matters;
and financial reporting matters. Certain of the pending legal actions are, or purport to be, class actions. Some of the
matters involve or may involve claims for compensatory, punitive, or antitrust or other treble damages in very large
amounts, or demands for recall campaigns, environmental remediation programs, sanctions, loss of government
incentives, assessments, or other relief, which, if granted, would require very large expenditures.
The extent of our financial exposure to these matters is difficult to estimate. Many matters do not specify a dollar
amount for damages, and many others specify only a jurisdictional minimum. To the extent an amount is asserted, our
historical experience suggests that in most instances the amount asserted is not a reliable indicator of the ultimate
outcome.

Ford Motor Company | 2012 Annual Report 155
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
155
NOTE 31. COMMITMENTS AND CONTINGENCIES (Continued)
In evaluating for accrual and disclosure purposes matters filed against us, we take into consideration factors such as
our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of
our prevailing, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over
time.

For the majority of matters, which generally arise out of alleged defects in our products, we establish an accrual based
on our extensive historical experience with similar matters, and we do not believe that there is a reasonably possible
outcome materially in excess of our accrual.
For the remaining matters, where our historical experience with similar matters is of more limited value (i.e., “non-
pattern matters”), we evaluate matters primarily based on the individual facts and circumstances. 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
non-U.S. indirect tax matters, for which we estimate this aggregate risk to be a range of up to about $2.3 billion.
As noted, the litigation process is subject to many uncertainties, and the outcome of individual litigated matters is not
predictable with assurance. Our assessments are based on our knowledge and experience, but the ultimate outcome of
any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed.
Warranty
Included in warranty cost accruals are the costs for basic warranty coverages and field service actions (i.e., product
recalls and owner notification programs) on products sold. These costs are estimates based primarily on historical
warranty claim experience. Warranty accruals accounted for in Accrued liabilities and deferred revenue for the years
ended December 31 were as follows (in millions):
2012 2011
Beginning balance $ 3,915 $ 3,855
Payments made during the period (2,254) (2,799)
Changes in accrual related to warranties issued during the period 1,885 2,215
Changes in accrual related to pre-existing warranties 49 690
Foreign currency translation and other 61 (46)
Ending balance $ 3,656 $ 3,915
Excluded from the table above are costs accrued for customer satisfaction actions.
For more information visit www.annualreport.ford.com

156 Ford Motor Company | 2012 Annual Report

156
Selected Financial Data
On January 1, 2010, we adopted the new accounting standard regarding consolidation of variable interest entities
(“VIEs”). We have applied the standard retrospectively to periods covered in this Report, and present prior-year financial
statement data on a basis that is revised for the application of this standard. The following table sets forth selected
financial data for each of the last five years (dollar amounts in millions, except for per share amounts):
SUMMARY OF INCOME 2012 2011 2010 2009 2008
Total Company
Revenues $ 134,252 $ 136,264 $ 128,954 $ 116,283 $ 143,584
Income/(Loss) before income taxes $ 7,720 $ 8,681 $ 7,149 $ 2,599 $ (14,895)
Provision for/(Benefit from) income taxes 2,056 (11,541) 592 (113) (62)
Income/(Loss) from continuing operations 5,664 20,222 6,557 2,712 (14,833)
Income/(Loss) from discontinued operations — — — 5 9
Net income/(loss) 5,664 20,222 6,557 2,717 (14,824)
Less: Income/(Loss) attributable to noncontrolling interests (1) 9 (4) — (58)
Net income/(loss) attributable to Ford Motor Company $ 5,665 $ 20,213 $ 6,561 $ 2,717 $ (14,766)
Automotive Sector
Revenues $ 126,567 $ 128,168 $ 119,280 $ 103,868 $ 127,635
Income/(Loss) before income taxes 6,010 6,250 4,146 785 (12,314)
Financial Services Sector
Revenues $ 7,685 $ 8,096 $ 9,674 $ 12,415 $ 15,949
Income/(Loss) before income taxes 1,710 2,431 3,003 1,814 (2,581)
Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock
Basic income/(loss) $ 1.48 $ 5.33 $ 1.90 $ 0.91 $ (6.50)
Diluted income/(loss) $ 1.42 $ 4.94 $ 1.66 $ 0.86 $ (6.50)
Cash dividends declared $ 0.15 $ 0.05 $ — $ — $ —
Common Stock price range (NYSE Composite Intraday)
High $ 13.08 $ 18.97 $ 17.42 $ 10.37 $ 8.79
Low 8.82 9.05 9.75 1.50 1.01
Average number of shares of Ford Common and Class B Stock outstanding
(in millions) 3,815 3,793 3,449 2,992 2,273
SECTOR BALANCE SHEET DATA AT YEAR-END
Assets
Automotive sector $ 86,458 $ 78,786 $ 64,606 $ 79,118 $ 71,556
Financial Services sector 106,160 101,574 103,270 119,112 151,667
Intersector elimination (252) (1,112) (2,083) (3,224) (2,535)
Total assets $ 192,366 $ 179,248 $ 165,793 $ 195,006 $ 220,688
Debt
Automotive sector $ 14,256 $ 13,094 $ 19,077 $ 33,610 $ 23,319
Financial Services sector 90,802 86,595 85,112 98,671 128,842
Intersector elimination (a) — (201) (201) (646) (492)
Total debt $ 105,058 $ 99,488 $ 103,988 $ 131,635 $ 151,669
Total Equity/(Deficit) $ 15,989 $ 15,071 $ (642) $ (7,782) $ (15,371)
__________
(a) Debt related to Ford’s acquisition of Ford Credit debt securities.

Ford Motor Company | 2012 Annual Report 157
157
Employment Data
The approximate number of individuals employed by us and entities that we consolidated as of December 31, 2012
and 2011 was as follows (in thousands):
2012 2011
Automotive
Ford North America 80 75
Ford South America 17 16
Ford Europe 46 47
Ford Asia Pacific Africa 22 19
Financial Services
Ford Credit 6 7
Total 171 164
The year-over-year increase in employment primarily reflects increases in North America and Asia Pacific Africa to
support increased production, partially offset by the initiation of personnel-reduction programs in Europe.
Substantially all of the hourly employees in our Automotive operations are represented by unions and covered by
collective bargaining agreements. In the United States, approximately 99% of these unionized hourly employees in our
Automotive sector are represented by the International Union, United Automobile, Aerospace and Agricultural Implement
Workers of America (“UAW” or “United Auto Workers”). Approximately two percent of our U.S. salaried employees are
represented by unions. Most hourly employees and many non-management salaried employees of our subsidiaries
outside of the United States also are represented by unions.
In 2011, we entered into a four-year collective bargaining agreement with the UAW. The agreement covers
approximately 41,000 employees, and maintains our progress on improving competitiveness in the United States.
Excluding profit-sharing, compensation-related terms – including lump-sum payments (in lieu of general wage increases
and cost of living increases) and continuation of an entry-level wage structure – are expected to increase U.S. hourly labor
costs by less than 1% annually over the four-year contract period. We also expect this increase will be more than offset
by more flexible work rules that will allow us to increase manufacturing utilization and efficiency.
For more information visit www.annualreport.ford.com

158 Ford Motor Company | 2012 Annual Report

158
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as
such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions or because the degree of compliance with policies or procedures may
deteriorate.
Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an
assessment of the effectiveness of our internal control over financial reporting as of December 31, 2012. The assessment
was based on criteria established in the framework Internal Control – Integrated Framework, issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concluded that our
internal control over financial reporting was effective as of December 31, 2012.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2012 has been
audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report
included herein.

Ford Motor Company | 2012 Annual Report 159

159
New York Stock Exchange Required Disclosures
On June 1, 2012, Ford’s Chief Executive Officer certified that he was not aware of any violation by the Company of
the New York Stock Exchange Corporate Governance listing standards, other than has been notified to the Exchange
pursuant to Section 303A.12(b), of which there was none.
Market for Common Equity and Related Stockholder Matters.

Our Common Stock is listed on the New York Stock Exchange in the United States, and on certain stock exchanges
in Belgium and France.

The table below shows the high and low sales prices for our Common Stock, and the dividends we paid per share of
Common and Class B Stock, for each quarterly period in 2011 and 2012:

2011 2012

Ford Common Stock price
per share (a)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
High $ 18.97 $ 16.18 $ 14.22 $ 12.65 $ 13.05 $ 12.95 $ 10.66 $ 13.08
Low 13.75 12.65 9.32 9.05 10.99 9.46 8.82 9.71
Dividends per share of Ford
Common and Class B Stock $ — $ — $ — $ — $ 0.05 $ 0.05 $ 0.05 $ 0.05
__________
(a) New York Stock Exchange composite intraday prices as listed in the price history database available at www.NYSEnet.com.

As of February 1, 2013, stockholders of record of Ford included approximately 151,240 holders of Common Stock and
66 holders of Class B Stock.
For more information visit www.annualreport.ford.com

160 Ford Motor Company | 2012 Annual Report
Stock Performance Graph
Base Period Years Ending
Company / Index Dec. 2007 Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2011 Dec. 2012
FORD MOTOR COMPANY 100 34 149 249 160 196
S&P 500 INDEX 100 63 80 92 94 109
Dow Jones Automobiles & 100 42 81 125 94 111
Parts Titans 30 Index
2009
The graph below shows over the past five years, the performance of our common stock against the
Standard & Poor’s 500 Stock Index and the Dow Jones Automobiles & Parts Titans 30 Index.
2007
$0
$50
$100
$150
$250
$200
2008 2009 2010 2011 2012
Total Return To Shareholders (Includes reinvestment of dividends)
COMPARISON OF CUMULATIVE FIVE-YEAR TOTAL RETURN

For more information visit www.annualreport.ford.com
Customer Services Operations Customer Assistance
Service
A total service experience for Ford, Lincoln and Mercury owners
available only at Ford and Lincoln stores — designed to deliver
customer satisfaction and loyalty
• Parts engineered to Ford Motor Company specifications
• Technicians trained and certified specifically on Ford, Lincoln
and Mercury vehicles
• One-stop service for all vehicle maintenance and repair needs
Locate Ford and Lincoln Dealer
Service at:
FordOwner.com
LincolnOwner.com
Order Genuine Ford parts at:
FordParts.com
Quick Lane Tire and Auto Center
Ford Motor Company’s all-makes quick service brand,
successfully occupies a unique niche in the marketplace by
offering customers “convenience with confidence.” Convenience
comes in the form of all-makes-all-models service capabilities,
no-appointment-necessary, service while you wait, evening and
weekend hours, and competitive prices. Confidence comes in the
form of factory-trained technicians and quality Motorcraft parts
Locate Quick Lane Tire and
Auto Centers at:
Quicklane.com
Motorcraft and Ford Genuine Parts
New and remanufactured parts recommended by Ford Motor
Company and available in Ford and Lincoln stores, Ford
authorized distributors and thousands of major retail and
repair locations
Order Motorcraft and Ford
Genuine Parts at:
FordParts.com
Genuine Ford Accessories
Wide variety of custom accessories are available, all designed to
personalize Ford and Lincoln vehicles
Genuine Ford Accessories at:
accessories.ford.com
accessories.lincoln.com
Extended Service Business
Provides comprehensive vehicle service contracts and
maintenance programs
Ford Extended Service Plan (ESP)
Customers include Ford, Lincoln and Mercury owners, commercial
business owners and fleets of Ford Motor Company vehicles
ESP
1.800.521.4144
ford-esp.com
Financial Services Operations Customer Assistance
Ford Motor Credit Company
• A leading automotive financial services company founded
in 1959
• Provides a wide variety of dealer and customer financing
products and services globally in support of Ford Motor
Company vehicle sales
• As of year-end 2012, Ford Credit was financing about 5,200 Ford
and Lincoln dealers and more than 3.6 million retail customers
around the world
1.800.727.7000
FordCredit.com
1.888.498.8801
LincolnAFS.com
Global Overview
Automotive Brand Customer Assistance Automotive Brand Customer Assistance
1.800.392.3673
Ford.com
FordOwner.com
Click on “contact us”
1.800.521.4140
Lincoln.com
LincolnOwner.com
Click on “contact us”
Ford Motor Company | 2012 Annual Report 161
About the Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes
automobiles across six continents. With about 171,000 employees and 65 plants worldwide, the company’s automotive
brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. For more
information regarding Ford and its products worldwide, please visit corporate.ford.com.

Ford Motor Company
One American Road
Dearborn, MI 48126
www.corporate.ford.com
Ford M
otor C
om
pany
20
12 A
nnual R
eport