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DEBT AND COMMITMENTS
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT AND COMMITMENTS DEBT AND COMMITMENTS
Our debt consists of short-term and long-term secured and unsecured debt securities and secured and unsecured borrowings from banks and other lenders.  Debt issuances are placed directly by us or through securities dealers or underwriters and are held by institutional and retail investors.  In addition, Ford Credit sponsors securitization programs that provide short-term and long-term asset-backed financing through institutional investors in the U.S. and international capital markets.

Debt is reported on our consolidated balance sheets at par value adjusted for unamortized discount or premium, unamortized issuance costs, and adjustments related to designated fair value hedging (see Note 19). Discounts, premiums, and costs directly related to the issuance of debt are capitalized and amortized over the life of the debt or to the put date and are recorded in interest expense using the effective interest method. Gains and losses on the extinguishment of debt are recorded in Other income/(loss), net.
NOTE 18.  DEBT AND COMMITMENTS (Continued)

The carrying value of Company debt excluding Ford Credit and Ford Credit debt at December 31 was as follows (in millions):
Average Contractual
Interest Rates
Company excluding Ford Credit2024202520242025
Debt payable within one year  
Short-term$632 $1,355 4.0 %3.8 %
Long-term payable within one year 
U.K. Export Finance Program784 — 
Public unsecured debt securities176 1,672 
Convertible notes— 2,300 
Other debt (including finance leases) (a)176 226 
Unamortized (discount)/premium and issuance costs(12)(3)
Total debt payable within one year1,756 5,550 
Long-term debt payable after one year 
Public unsecured debt securities14,759 13,087 
Convertible notes2,300 — 
U.K. Export Finance Program940 2,355 
Other debt (including finance leases) (a)1,160 1,210 
Unamortized (discount)/premium and issuance costs(261)(283)
Total long-term debt payable after one year
18,898 16,369 5.1 %(b)5.0 %(b)
Total Company excluding Ford Credit$20,654 $21,919 
Fair value of Company debt excluding Ford Credit (c)$20,178 $21,640 
Ford Credit 
Debt payable within one year 
Short-term$17,413 $18,350 4.7 %3.7 %
Long-term payable within one year 
Unsecured debt12,871 13,625 
Asset-backed debt23,050 19,831 
Unamortized (discount)/premium and issuance costs(16)(18)
Fair value adjustments (d)(125)(36)
Total debt payable within one year53,193 51,752 
Long-term debt payable after one year
Unsecured debt49,607 52,357 
Asset-backed debt36,224 37,741 
Unamortized (discount)/premium and issuance costs(237)(229)
Fair value adjustments (d)(919)(204)
Total long-term debt payable after one year84,675 89,665 4.8 %(b)4.7 %(b)
Total Ford Credit$137,868 $141,417 
Fair value of Ford Credit debt (c)$140,046 $144,213 
__________
(a)At December 31, 2024 and 2025, long-term finance leases payable within one year were $94 million and $136 million, respectively, and long-term finance leases payable after one year were $711 million and $754 million, respectively.
(b)Includes interest on long-term debt payable within one year and after one year.
(c)At December 31, 2024 and 2025, the fair value of debt includes $632 million and $1,355 million of Company excluding Ford Credit short-term debt, respectively, and $16.2 billion and $16.4 billion of Ford Credit short-term debt, respectively, carried at cost, which approximates fair value. All other debt is categorized within Level 2 of the fair value hierarchy.
(d)These adjustments are related to hedging activity and include discontinued hedging relationship adjustments of $(450) million and $(319) million at December 31, 2024 and 2025, respectively. The carrying value of hedged debt was $41.1 billion and $41.7 billion at December 31, 2024 and 2025, respectively.

Cash paid for interest was $1.3 billion, $1.1 billion, and $1.3 billion in 2023, 2024, and 2025, respectively, on Company excluding Ford Credit debt. Cash paid for interest was $5.8 billion, $7.0 billion, and $6.7 billion in 2023, 2024, and 2025, respectively, on Ford Credit debt.
NOTE 18.  DEBT AND COMMITMENTS (Continued)

Debt Obligations

The amounts contractually due for our debt maturities and interest payments on long-term debt at December 31, 2025 were as follows (in millions):
 20262027202820292030ThereafterAdjustmentsTotal Debt Maturities
Company excluding Ford Credit       
Public unsecured debt securities$3,972 $— $550 $202 $432 $11,903 $(197)$16,862 
Short-term and other debt1,581 1,184 273 258 253 1,597 (89)5,057 
Total$5,553 $1,184 $823 $460 $685 $13,500 $(286)$21,919 
Interest payments relating to long-term debt (a)$1,026 $904 $869 $817 $763 $8,370 $— $12,749 
Ford Credit       
Unsecured debt$30,053 $12,941 $11,657 $8,613 $7,836 $11,310 $(423)$81,987 
Asset-backed debt21,753 17,819 12,104 4,581 3,237 — (64)59,430 
Total$51,806 $30,760 $23,761 $13,194 $11,073 $11,310 $(487)$141,417 
Interest payments relating to long-term debt (a)$5,309 $3,858 $2,583 $1,633 $1,057 $1,666 $— $16,106 
__________
(a)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.

Company excluding Ford Credit Segment

Public Unsecured Debt Securities

Our public unsecured debt securities outstanding at December 31 were as follows (in millions):
 Aggregate Principal Amount Outstanding
Title of Security20242025
7 1/8% Debentures due November 15, 2025$176 $— 
0.00% Notes due March 15, 2026
2,300 2,300 
7 1/2% Debentures due August 1, 2026172 172 
4.346% Notes due December 8, 2026
1,500 1,500 
6 5/8% Debentures due February 15, 2028104 104 
6 5/8% Debentures due October 1, 2028 (a) 
446 446 
6 3/8% Debentures due February 1, 2029 (a) 
202 202 
9.30% Notes due March 1, 2030
294 294 
9.625% Notes due April 22, 2030
432 432 
7.45% GLOBLS due July 16, 2031 (a) 
1,070 1,070 
8.900% Debentures due January 15, 2032
108 108 
3.25% Notes due February 12, 2032
2,500 2,500 
9.95% Debentures due February 15, 2032
4 4 
6.10% Notes due August 19, 2032
1,750 1,750 
4.75% Notes due January 15, 2043
2,000 2,000 
7.75% Debentures due June 15, 2043
73 73 
7.40% Debentures due November 1, 2046
398 398 
5.291% Notes due December 8, 2046
1,300 1,300 
9.980% Debentures due February 15, 2047
114 114 
6.20% Notes due June 1, 2059
750 750 
6.00% Notes due December 1, 2059
800 800 
6.50% Notes due August 15, 2062
600 600 
7.70% Debentures due May 15, 2097
142 142 
Total public unsecured debt securities$17,235 $17,059 
__________
(a)    Listed on the Luxembourg Exchange and on the Singapore Exchange.
NOTE 18.  DEBT AND COMMITMENTS (Continued)

Convertible Debt

In March 2021, we issued $2.3 billion aggregate principal amount of unsecured 0% Convertible Senior Notes due 2026, including $300 million aggregate principal amount of such notes pursuant to the exercise in full of the overallotment option granted to the initial purchasers. The notes do not bear regular interest and the principal amount of the notes does not accrete. The total net proceeds from the offering, after deducting debt issuance costs, were approximately $2,267 million.

Each $1,000 principal amount of the notes is convertible into 75.3720 shares of our Common Stock, which is equivalent to a conversion price of approximately $13.27 per share, subject to adjustment upon the occurrence of specified events. The notes are convertible, at the option of the noteholders, on or after December 15, 2025.

Upon conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and deliver shares of our Common Stock for the remainder of our obligation in excess, if any, of the aggregate principal amount of the notes being converted. Any conversions on or after December 15, 2025 will be paid at maturity.

If we undergo a fundamental change (e.g., change of control), subject to certain conditions, holders of the notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes. In addition, if specific corporate events occur prior to the maturity date or if we issue a notice of redemption, we will increase the conversion rate by pre-defined amounts for holders who elect to convert their notes in connection with such a corporate event. The conditions allowing holders of the notes to convert were not met in 2024 or 2025.

The notes were issued at par and fees associated with the issuance of these notes are amortized to Interest expense on Company debt excluding Ford Credit over the contractual term of the notes. Amortization of issuance costs was $7 million in 2023, 2024, and 2025. The effective interest rate of the notes is 0.3%.

The total estimated fair value of the notes as of December 31, 2024 and 2025 was approximately $2.2 billion and $2.4 billion, respectively. The fair value was determined using commonly employed valuation methodologies applying observable market inputs and is classified within Level 2 of the fair value hierarchy.

The notes did not have an impact on our full year 2024 or 2025 diluted EPS.

U.K. Export Finance Program

In 2022 and 2025, Ford Motor Company Limited (“Ford of Britain”), our operating subsidiary in the United Kingdom, entered into, and drew in full, £750 million and £1 billion term loan credit facilities, respectively, with a syndicate of banks to support Ford of Britain’s general export activities. Accordingly, U.K. Export Finance (“UKEF”) provided £600 million and £800 million guarantees of the credit facilities, respectively, under its Export Development Guarantee scheme, which supports high value commercial lending to U.K. exporters. We have also guaranteed Ford of Britain’s obligations under the credit facilities to the lenders. As of December 31, 2025, the full £1,750 million under the two credit facilities remained outstanding. The 2022 loan is a five-year, non-amortizing loan that matures on June 30, 2027, and the 2025 loan is a seven-year, partially amortizing loan that matures on July 23, 2032.

Company excluding Ford Credit Facilities

Total Company committed credit lines, excluding Ford Credit, at December 31, 2025 were $23.7 billion, consisting of $13.5 billion of our corporate credit facility, $2.0 billion of our supplemental revolving credit facility, $2.5 billion of our 364-day revolving credit facility, $3.0 billion of our delayed draw term loan facility, and $2.7 billion of local credit facilities. At December 31, 2025, $2.4 billion of committed Company credit lines, excluding Ford Credit, was utilized under local credit facilities for our affiliates, and the full amount under each of our corporate, supplemental, 364-day, and delayed draw term loan credit facilities was available.
NOTE 18.  DEBT AND COMMITMENTS (Continued)

Lenders under our corporate credit facility have $3.4 billion of commitments maturing on April 17, 2028, and $10.1 billion of commitments maturing on April 17, 2030. Lenders under our supplemental revolving credit facility have $2.0 billion of commitments maturing on April 17, 2028. Lenders under our 364-day revolving credit facility have $2.5 billion of commitments maturing on April 16, 2026. Lenders under our delayed draw term loan facility have $3.0 billion of commitments available through July 28, 2026. Any unused commitments shall automatically terminate after July 28, 2026, and any loans drawn under the facility will mature on December 31, 2028.

The corporate, supplemental, and 364-day credit agreements include certain sustainability-linked targets, pursuant to which the applicable margin and facility fees may be adjusted if Ford achieves, or fails to achieve, the specified targets related to global manufacturing facility greenhouse gas emissions, carbon-free electricity consumption, and Ford Europe CO2 tailpipe emissions. For the most recent performance period, Ford outperformed the global manufacturing facility greenhouse gas emissions and carbon-free electricity consumption metrics, and it was on target for the Ford Europe CO2 tailpipe emissions metric.

The corporate credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive financial covenants (for example, interest or fixed-charge coverage ratio, debt-to-equity ratio, and minimum net worth requirements), and credit rating triggers that could limit our ability to obtain funding or trigger early repayment. The corporate credit facility contains a liquidity covenant that requires us to maintain a minimum of $4 billion in aggregate of domestic cash, cash equivalents, and loaned and marketable securities and/or availability under the corporate credit facility, supplemental revolving credit facility, and 364-day revolving credit facility. If our senior, unsecured, long-term debt does not maintain at least two investment grade ratings from Fitch, Moody’s, and S&P, the guarantees of certain subsidiaries will be required. The terms and conditions of the supplemental and 364-day revolving credit facilities and the delayed draw term loan facility are consistent with our corporate credit facility. Ford Credit has been designated as a subsidiary borrower under the corporate credit facility and the 364-day revolving credit facility.

Ford Credit Segment

Asset-Backed Debt

At December 31, 2025, the carrying value of our asset-backed debt was $59.5 billion. This secured debt is issued by Ford Credit and includes asset-backed securities used to fund operations and maintain liquidity. Assets securing the related debt issued as part of all our securitization transactions are included in our consolidated results and are based upon the legal transfer of the underlying assets in order to reflect legal ownership and the beneficial ownership of the debt holder. The third-party investors in the securitization transactions have legal recourse only to the assets securing the debt and do not have such recourse to us, except for customary representation and warranty provisions or when we are counterparty to certain derivative transactions of the special purpose entities (“SPEs”). In addition, the cash flows generated by the assets are restricted only to pay such liabilities; Ford Credit retains the right to residual cash flows. See Note 23 for additional information.

Although not contractually required, we regularly support our wholesale securitization programs by repurchasing receivables of a dealer from a SPE when the dealer’s performance is at risk, which transfers the corresponding risk of loss from the SPE 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 balance of cash related to these contributions was $0 at both December 31, 2024 and 2025 and was $0 for all of 2024 and 2025.

SPEs that are exposed to interest rate or currency risk may reduce their risks by entering into derivative transactions. In certain instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks absorbed through derivative transactions with the SPEs. Derivative income/(expense) related to the derivative transactions that support Ford Credit’s securitization programs were $39 million, $56 million, and $(36) million for the years ended December 31, 2023, 2024, and 2025, respectively. See Note 19 for additional information regarding the accounting for derivatives.

Interest expense on securitization debt was $2.5 billion, $2.8 billion, and $2.5 billion in 2023, 2024, and 2025, respectively.
NOTE 18.  DEBT AND COMMITMENTS (Continued)

The assets and liabilities related to our asset-backed debt arrangements included in our consolidated financial statements at December 31 were as follows (in billions):
 20242025
Assets
Cash and cash equivalents$3.0 $2.9 
Finance receivables, net71.6 63.7 
Net investment in operating leases13.3 13.6 
Liabilities
Debt (a)$60.4 $59.5 
__________
(a)Debt is net of unamortized discount and issuance costs.

Committed Credit Facilities

At December 31, 2025, Ford Credit’s committed capacity totaled $45.1 billion, compared with $44.6 billion at December 31, 2024.  Ford Credit’s committed capacity is primarily comprised of commitments from banks and bank-sponsored asset-backed commercial paper conduits and committed unsecured credit facilities with financial institutions.