Segment Information (Notes)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

In conjunction with our expanded business model to become an automotive, financial services, and mobility company, beginning with the second quarter of 2016, we changed our reportable segment disclosures. Reflecting the manner in which our Chief Operating Decision Maker manages our businesses, including resource allocation and performance assessment, we have four operating segments that represent the primary businesses reported in our consolidated financial statements. These operating segments are: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations.

Automotive and Financial Services comprise separate reportable segments. Ford Smart Mobility LLC and Central Treasury Operations did not meet the quantitative thresholds in this reporting period to qualify as reportable segments; therefore, these operating segments are combined and disclosed below as All Other. Prior-period amounts were adjusted retrospectively to reflect the change to our reportable segments.

Below is a description of our reportable segments and the business activities included in All Other.

Automotive Segment

Our Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories worldwide, together with the associated costs to develop, manufacture, distribute, and service the vehicles, parts, and accessories. The segment includes five regional business units:  North America, South America, Europe, Middle East & Africa, and Asia Pacific.

Financial Services Segment

The Financial Services segment primarily includes our vehicle-related financing and leasing activities at Ford Credit.

All Other

All Other is a combination of two operating segments that did not meet the quantitative thresholds in this reporting period to qualify as reportable segments. All Other consists of our Central Treasury Operations (formerly Other Automotive) and Ford Smart Mobility LLC. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment. Interest income (excluding interest earned on our extended service contract portfolio that is included in our Automotive segment), interest expense, gains and losses on cash equivalents and marketable securities, and foreign exchange derivatives associated with intercompany lending, are included in the results of Central Treasury Operations. The underlying assets and liabilities, primarily cash and cash equivalents, marketable securities, debt, and derivatives, remain with the Automotive segment.

Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. Designed to compete like a start-up company, Ford Smart Mobility LLC will design and build mobility services on its own, and collaborate with start-ups and tech companies.

NOTE 4.SEGMENT INFORMATION(Continued)

Special Items

In addition, our results include Special items that consist of (i) pension and other postretirement employee benefits (“OPEB”) remeasurement gains and losses, (ii) significant personnel and dealer-related costs 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.

NOTE 4.SEGMENT INFORMATION(Continued)

Key operating data for our business segments for the years ended or at December 31 were as follows (in millions):

	Automotive		Financial Services		All Other			Special Items			Adjustments				Total
2014
Revenues	$	135,782	$	8,295	$	—		$	—		$	—			$	144,077
Pre-tax results - income/(loss)	6,254		1,794		(755		)	(6,059		)	—				1,234
Depreciation and tooling amortization	4,252		3,133		—			—			—				7,385
Interest expense	—		2,699		797			—			—				3,496
Investment-related interest income	53		51		140			—			—				244
Equity in net income/(loss) of affiliated companies	1,575		29		—			(329		)	—				1,275
Cash outflow for capital spending	7,360		103		—			—			—				7,463
Cash, cash equivalents, and marketable securities	21,702		9,448		—			—			—				31,150
Total assets	90,167		121,388		—			—			(2,940		)	(a)	208,615
Debt	13,824		105,347		—			—			—				119,171
Operating cash flows	3,563		5,743		—			—			5,201			(b)	14,507
2015
Revenues	$	140,566	$	8,992	$	—		$	—		$	—			$	149,558
Pre-tax results - income/(loss)	9,568		2,028		(796		)	(548		)	—				10,252
Depreciation and tooling amortization	4,332		3,661		—			—			—				7,993
Interest expense	—		2,454		773			—			—				3,227
Investment-related interest income	42		76		191			—			—				309
Equity in net income/(loss) of affiliated companies	1,786		32		—			—			—				1,818
Cash outflow for capital spending	7,147		49		—			—			—				7,196
Cash, cash equivalents, and marketable securities	23,567		11,609		—			—			—				35,176
Total assets	91,959		137,026		—			—			(4,060		)	(a)	224,925
Debt	12,839		120,015		—			—			—				132,854
Operating cash flows	7,285		3,876		—			—			5,009			(b)	16,170
2016
Revenues	$	141,546	$	10,253	$	1		$	—		$	—			$	151,800
Pre-tax results - income/(loss)	9,422		1,820		(867		)	(3,579		)	—				6,796
Depreciation and tooling amortization	4,667		4,356		—			—			—				9,023
Interest expense	—		2,808		894			—			—				3,702
Investment-related interest income	75		74		142			—			—				291
Equity in net income/(loss) of affiliated companies	1,747		33		—			—			—				1,780
Cash outflow for capital spending	6,947		45		—			—			—				6,992
Cash, cash equivalents, and marketable securities	27,462		11,357		8			—			—				38,827
Total assets	96,929		146,252		69			—			(5,299		)	(a)	237,951
Debt	15,907		127,063		—			—			—				142,970
Operating cash flows	6,385		8,754		(7		)	—			4,660			(b)	19,792

__________

(a) Includes deferred tax netting and eliminations of intersegment transactions occurring in the ordinary course of business.

(b) We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our Automotive operating activities, primarily capital spending and non-designated derivatives, and excludes outflows for funded pension contributions, separation payments, and other items that are considered operating cash flows under U.S. GAAP. The table below quantifies these reconciling adjustments to Net cash provided by/(used in) operating activities for the years ended December 31 (in millions):

	2014			2015			2016
Automotive capital spending	$	7,360		$	7,147		$	6,947
Net cash flows from non-designated derivatives	(247		)	76			(610		)
Funded pension contributions	(1,466		)	(1,115		)	(1,155		)
Separation payments	(223		)	(613		)	(336		)
Other	(223		)	(486		)	(186		)
Total operating cash flow adjustments	$	5,201		$	5,009		$	4,660

NOTE 4.SEGMENT INFORMATION(Continued)

Geographic Information

We report revenue on a “where-sold” basis, which reflects the revenue within the country in which the ultimate sale or financing is made to our external customer.

Total Company revenues and long-lived assets, split geographically by our country of domicile, the United States, and other countries where our major subsidiaries are domiciled, for the years ended December 31 were as follows (in millions):

	2014				2015				2016
	Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)
United States	$	82,665	$	34,645	$	93,142	$	39,853	$	93,433	$	42,946
United Kingdom	11,742		1,491		11,451		1,490		10,041		1,302
Canada	9,409		4,008		8,978		3,814		10,028		4,264
Germany	7,487		2,510		6,950		2,203		7,322		2,254
All Other	32,774		10,689		29,037		9,896		30,976		10,135
Total Company	$	144,077	$	53,343	$	149,558	$	57,256	$	151,800	$	60,901

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(a) Includes Net property and Net investment in operating leases from our consolidated balance sheet.