| 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. |
|