Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Our operating activity consists of two operating sectors, Automotive and Financial Services.Our Automotive sector includes the sale of Ford and Lincoln brand vehicles and related service parts and accessories. The Financial Services sector includes primarily our vehicle-related financing and leasing activities.

Automotive Sector

We analyze the results of our Automotive sector through our five segments:  North America, South America, Europe, Middle East & Africa, and Asia Pacific.

We report revenue on a “where-sold,” absolute-cost basis, which reflects the profit/(loss) on the sale within the segment in which the ultimate sale is made to our external customer. Due to the integrated structure of our business, we allocate to each segment certain costs incurred at a corporate level and those performed by one segment on the behalf of other segments.

Centrally-managed net interest expense and market value adjustments are presented separately in the Other Automotive component of the Automotive sector.

In addition, our Automotive sector results include Special Items that consist of (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. Our management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. Special items are presented as a separate reconciling item.

In 2014, we changed our Automotive sector reportable segments to establish a fifth Automotive segment - Middle East & Africa - which includes South Africa as well as markets that were previously direct export markets in the Middle East and Africa. Previously, South Africa results were included in Asia Pacific Africa and direct export markets were reflected in the results of the producing region or segment. We have also realigned the reporting of our direct export markets on a geographic basis. We have retrospectively revised the segment presentation for all periods presented.

Financial Services Sector

We analyze the results of our Financial Services sector through two segments: Ford Credit and Other Financial Services, which includes holding companies, real estate, and the financing of some Volvo vehicles in Europe. During 2013, we sold a substantial portion of our Volvo financing business, with the remaining Volvo-related retail financing receivables classified as assets held for sale in Other assets.

NOTE 24.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
	North America		South America			Europe			Middle East & Africa			Asia Pacific			Other Automotive			Special Items			Total
2014
Revenues	$	82,376	$	8,799		$	29,457		$	4,406		$	10,744		$	—		$	—		$	135,782
Income/(Loss) before income taxes	6,898		(1,162		)	(1,062		)	(20		)	589			(755		)	(1,940		)	2,548
Other disclosures:
Depreciation and tooling amortization	2,279		309			1,179			141			344			—			—			4,252
Amortization of intangibles	14		—			—			—			1			—			—			15
Interest expense	—		—			—			—			—			797			—			797
Investment-related interest income	46		—			5			—			2			140			—			193
Interest income/(expense) on income taxes	—		—			—			—			—			109			—			109
Cash outflow for capital spending	4,270		497			1,619			135			839			—			—			7,360
Equity in net income/(loss) of affiliated companies	147		—			107			—			1,321			—			(329		)	1,246
Total assets	61,316		5,142			14,181			1,155			8,285			—			—			90,079
2013
Revenues	$	86,494	$	10,847		$	27,255		$	4,533		$	10,240		$	—		$	—		$	139,369
Income/(Loss) before income taxes	8,809		(33		)	(1,442		)	(69		)	327			(656		)	(1,568		)	5,368
Other disclosures:
Depreciation and tooling amortization	2,064		272			1,269			125			334			—			—			4,064
Amortization of intangibles	9		—			1			—			1			—			—			11
Interest expense	—		—			—			—			—			829			—			829
Investment-related interest income	99		—			6			1			4			53			—			163
Cash outflow for capital spending	3,694		756			1,249			154			713			—			—			6,566
Equity in net income/(loss) of affiliated companies	127		—			125			—			794			—			—			1,046
Total assets	59,054		7,056			15,260			1,038			8,071			—			—			90,479
2012
Revenues	$	77,368	$	10,081		$	25,759		$	4,890		8,469			$	—		$	—		$	126,567
Income/(Loss) before income taxes	8,125		213			(1,720		)	85			(59		)	(470		)	(246		)	5,928
Other disclosures:
Depreciation and tooling amortization	1,893		256			1,111			115			280			—			—			3,655
Amortization of intangibles	9		—			—			—			1			—			—			10
Interest expense	—		—			—			—			—			713			—			713
Investment-related interest income	72		—			—			—			—			200			—			272
Cash outflow for capital spending	3,089		668			1,074			152			476			—			—			5,459
Equity in net income/(loss) of affiliated companies	127		—			113			—			315			—			—			555
Total assets	51,742		6,819			20,295			1,045			6,722			—			—			86,623

NOTE 24.SEGMENT INFORMATION(Continued)

	Financial Services Sector												Total Company
	Operating Segments						Reconciling Item
	Ford Credit			Other Financial Services			Elims			Total			Elims (a)			Total
2014
Revenues	$	8,606		$	135		$	(446	)	$	8,295		$	—		$	144,077
Income/(Loss) before income taxes	1,854			(60		)	—			1,794			—			4,342
Other disclosures:
Depreciation and tooling amortization	3,112			21			—			3,133			—			7,385
Amortization of intangibles	—			—			—			—			—			15
Interest expense	2,656			43			—			2,699			—			3,496
Investment-related interest income (b)	51			—			—			51			—			244
Interest income/(expense) on income taxes	(13		)	—			—			(13		)	—			96
Cash outflow for capital spending	18			85			—			103			—			7,463
Equity in net income/(loss) of affiliated companies	29			—			—			29			—			1,275
Total assets	122,108			5,560			(6,280		)	121,388			(2,940		)	208,527
2013
Revenues	$	7,805		$	192		$	(449	)	$	7,548		$	—		$	146,917
Income/(Loss) before income taxes	1,756			(84		)	—			1,672			—			7,040
Other disclosures:
Depreciation and tooling amortization	2,422			18			—			2,440			—			6,504
Amortization of intangibles	—			—			—			—			—			11
Interest expense	2,730			130			—			2,860			—			3,689
Investment-related interest income (b)	50			—			—			50			—			213
Cash outflow for capital spending	16			15			—			31			—			6,597
Equity in net income/(loss) of affiliated companies	23			—			—			23			—			1,069
Total assets	115,608			5,679			(6,230		)	115,057			(3,357		)	202,179
2012
Revenues	$	7,189		$	267		$	(464	)	$	6,992		$	—		$	133,559
Income/(Loss) before income taxes	1,697			13			—			1,710			—			7,638
Other disclosures:
Depreciation and tooling amortization	1,806			25			—			1,831			—			5,486
Amortization of intangibles	—			—			—			—			—			10
Interest expense	3,027			88			—			3,115			—			3,828
Investment-related interest income (b)	69			1			—			70			—			342
Cash outflow for capital spending	18			11			—			29			—			5,488
Equity in net income/(loss) of affiliated companies	33			—			—			33			—			588
Total assets	104,596			7,698			(7,282		)	105,012			(2,064		)	189,571

__________

(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.