Segment Information (Notes)

12 Months Ended

Dec. 31, 2015

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 primarily includes our vehicle-related financing and leasing activities at Ford Credit.

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) pension and OPEB remeasurement gains and losses, (ii) personnel and dealer-related items stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) 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.

Financial Services Sector

Prior to January 1, 2015, we had an Other Financial Services segment, which included holding companies, real estate, and the financing of some Volvo vehicles in Europe. Effective January 1, 2015, we realigned the business operations of this segment to our Automotive sector on a prospective basis. The impact of this change on our prior periods presented would have been immaterial.

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
2015
Revenues	$	91,870	$	5,766		$	28,170		$	4,005		$	10,755	$	—		$	—		$	140,566
Income/(Loss) before income taxes	9,345		(832		)	259			31			765		(796		)	(548		)	8,224
Other disclosures:
Depreciation and tooling amortization	2,501		252			1,042			162			375		—			—			4,332
Interest expense	—		—			—			—			—		773			—			773
Investment-related interest income	36		—			6			—			—		191			—			233
Interest income/(expense) on income taxes	—		—			—			—			—		—			—			—
Cash outflow for capital spending	4,582		280			1,415			156			714		—			—			7,147
Equity in net income/(loss) of affiliated companies	95		—			136			—			1,555		—			—			1,786
Total assets	63,241		4,544			14,381			1,088			8,705		—			—			91,959
2014
Revenues	$	82,376	$	8,799		$	29,457		$	4,406		$	10,744	$	—		$	—		$	135,782
Income/(Loss) before income taxes	7,443		(1,164		)	(598		)	(20		)	593		(755		)	(6,059		)	(560		)
Other disclosures:
Depreciation and tooling amortization	2,279		309			1,179			141			344		—			—			4,252
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	61,370		5,142			14,215			1,155			8,285		—			—			90,167
2013
Revenues	$	86,494	$	10,847		$	27,255		$	4,533		$	10,240	$	—		$	—		$	139,369
Income/(Loss) before income taxes	9,877		(35		)	(1,025		)	(69		)	331		(656		)	4,276			12,699
Other disclosures:
Depreciation and tooling amortization	2,064		272			1,269			125			334		—			—			4,064
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	59,095		7,056			15,244			1,038			8,071		—			—			90,504

NOTE 24.SEGMENT INFORMATION(Continued)

	Financial Services Sector												Total Company
	Operating Segment			Reconciling Items
	Ford Credit			Other			Elims			Total			Elims (a)			Total
2015
Revenues	$	9,280		$	—		$	(288	)	$	8,992		$	—		$	149,558
Income/(Loss) before income taxes	2,086			(57		)	(1		)	2,028			—			10,252
Other disclosures:
Depreciation and tooling amortization	3,661			—			—			3,661			—			7,993
Interest expense	2,416			57			(19		)	2,454			—			3,227
Investment-related interest income (b)	76			—			—			76			—			309
Interest income/(expense) on income taxes	3			—			—			3			—			3
Cash outflow for capital spending	49			—			—			49			—			7,196
Equity in net income/(loss) of affiliated companies	32			—			—			32			—			1,818
Total assets	137,448			—			(422		)	137,026			(4,060		)	224,925
2014
Revenues	$	8,606		$	135		$	(446	)	$	8,295		$	—		$	144,077
Income/(Loss) before income taxes	1,854			(60		)	—			1,794			—			1,234
Other disclosures:
Depreciation and tooling amortization	3,112			21			—			3,133			—			7,385
Interest expense	2,656			66			(23		)	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			363			(1,083		)	121,388			(2,940		)	208,615
2013
Revenues	$	7,805		$	192		$	(449	)	$	7,548		$	—		$	146,917
Income/(Loss) before income taxes	1,756			(84		)	—			1,672			—			14,371
Other disclosures:
Depreciation and tooling amortization	2,422			18			—			2,440			—			6,504
Interest expense	2,730			148			(18		)	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			491			(1,042		)	115,057			(3,357		)	202,204

__________

(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.