Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT INFORMATION

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.

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.

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

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.