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10-K Ford Motor Company
Bridgette Hare
OMM622: Financial Decision-Making
Instructor: John Kuhn
July 28, 2014

10-K Ford Motor Company There are many forms and reports that need to be submitted to a range of people; the annual report is for shareholders and investors, tax documents to submit to the IRS, and a form 10-K for the SEC. The Form 10-K is specifically for providing comprehensive details of the company’s business and financial condition based upon audited financial statements that is given in addition to the annual report (Epstein, 2014). Though it is a part of the annual report, it provides four key parts that is used by the SEC to make sure that investors are receiving a legitimate picture of the organization’s business and financial condition (Epstein, 2014). The SEC or Securities and Exchange Commission was established in June 1934 to help investors get adequate information to make sound decision and make strong penalties to minimize the impact of unscrupulous or negligent market participants (Samuel, 2013). The Form 10-K is a formal yearly update that has updated financial statements and comprehensive details (Epstein, 2014). Business Operations, Financial Data, Information about Directors and Executives, and additional Exhibits are the four key parts that are supplied on the Form 10-K. The Business Operations part focuses on the basic business operations that includes new developments, unresolved comments from the SEC, and any key property holdings and ongoing legal proceedings that have come about since the prior report (Epstein, 2014). In Part One of the Ford Motor Credit Company LLC Form 10-K for the year ending in December 2012, states that this business offers a variety of automotive financing products to and through automotive dealers throughout the world (Ford, 2014). Later in Part One of the Ford Form 10-K, it is read that they will not be required by Ford or any of Ford’s automotive affiliates to accept credit or residual risk beyond what they would be willing to accept acting in a prudent and commercially reasonable manner. This statement is because Ford Motor Car Company and Ford Motor Credit Company is two separate entities that do rely on each other but are not totally dependent on each other, however, there was a decline in the market share for Ford and there was not the growth achieved that was projected. This specific fact is a part of the risk factors in Part One of the Form 10-K. Part Two is a where the companies list details of their outstanding stock holdings, summary of selected financial data, financial statements, and any changes of disagreements with the accountants (Epstein, 2014). Ford earned $1.7 billion in 2012, down from the $2.4 billion in 2011 (Ford, 2014). It is stated that this is because of fewer leases being terminated, fewer vehicles being sold at a gain, and higher yielding assets in prior years. Another important part is the where Ford gets their funding sources. Most of them are securitized transactions and unsecured debt held by both institutional and retail investors that is both short and long term. There is internal control over financial reporting but it is process that has been designed to provide reasonable assurance regarding the reliability of financial reporting. This process was evaluated by the CEO, CFO, and Treasure at the time of the Company’s disclosure controls and procedures (Ford, 2014). The third section focuses on information about the directors and the executive officers along with their compensation, company ownership, and equity compensation plans (Epstein, 2014). All this information is usually presented in the proxy statement provided to shareholders (Epstein, 2014). In the Ford Form 10-K, most of this information is not required to provide. They did include their fees for accounting services in 2012 and 2011. The final section is all the extra exhibits, bylaws, contracts, and a list of its subsidiaries (Epstein, 2014). The Ford Motor Credit Company Form 10-K has a report of an independent registered public accounting firm along with all the financial statements and notes to financial statements. In Note 10, the debt of Ford is slowly decreasing since 2010 when aggregate principal amount of $5.6 billion was unsecured and asset-backed and a $139 million was recorded at a pre-tax loss. However, in 2012 with only $628 million of unsecured and asset-backed debt, only $14 million was recorded a pre-tax loss (Ford, 2014). There is a debt maturities table that looks at the total debt that is maturing at various dates until 2048. Though in 2013 there is over $36 million in total debt, by 2018 it should even out to only $8 million (Ford, 2014). Granted, it will flex depending on the market and how much debt is taken on in the future. Even though most of this information is contained in the annual report released by the company every year, the Form 10-K really breaks down the numbers even more and it includes detailed risk factors and comments by both staff and employees. Though all these forms can be confusing, by starting with the basic information found on the SEC website, a person can look at a Form 10-K with a fine toothed comb, so to speak. The Ford Motor Credit Company, while a part of Ford, shows that they are independent of the Ford parent company, and they are growing even through the economy crisis.

REFERENCES
Ford Motor Company. (2014). Ford Motor Company Form 10-K. Retrieved from http://corporate.ford.com/doc/sr12-form-10-k.pdf
Epstein, L. (2014). Financial decision making: An introduction to financial reports. San Diego, CA: Bridgepoint Education, Inc.
Samuel, S. (2013). Securities and Exchange Commission (SEC). Salem Press Encyclopedia,

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