SEGMENT INFORMATION

Effective January 1, 2018, we changed our reportable segments to reflect the manner in which we now manage our business. Based on recent changes to our organization structure and how our CODM reviews operating results and makes decisions about resource allocation, we now have three reportable segments that represent the primary businesses reported in our consolidated financial statements: Automotive, Mobility, and Ford Credit.

In addition to the change in reportable segments, consistent with how our CODM now assesses performance of the segments, we changed the measurement of our segment profits and losses as described below:


•	Corporate governance costs, which were previously reported as part of our Automotive segment, are now reported as part of Corporate Other


•	Autonomous vehicle development costs, which were previously reported as part of our Automotive segment, are now reported in Mobility


•	Interest income and portfolio gains and losses, which were previously reported in our segment results, are now reported in Corporate Other. Interest expense (other than interest expense incurred by Ford Credit) is now reported as a separate reconciling item

Prior period amounts were adjusted retrospectively to reflect the segment and measurement changes.

Below is a description of our reportable segments and other activities.

Automotive Segment

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

Mobility Segment

Our Mobility segment primarily includes development costs related to our autonomous vehicles and our investment in emerging mobility services through Ford Smart Mobility LLC (“FSM”). FSM designs and builds mobility services on its own, and collaborates with start-ups and tech companies.

Ford Credit Segment

The Ford Credit segment is comprised of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.

Corporate Other

Corporate Other primarily includes corporate governance costs, interest income (excluding interest earned on our extended service contract portfolio that is included in our Automotive segment) and portfolio gains and losses from our cash, cash equivalents, and marketable securities, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance costs are primarily administrative expenses supporting oversight or stewardship on behalf of the global enterprise and not allocated to specific business units or segments. The underlying assets and liabilities associated with these financial results remain with the respective Automotive and Mobility segments.

Interest on Debt

Interest on Debt is presented as a separate reconciling item and consists of interest expense on Automotive and other debt. The underlying liability is reported in the Automotive segment and in Corporate Other.

NOTE 18. SEGMENT INFORMATION (Continued)

Special Items

Special Items are presented as a separate reconciling item. They 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) other items that we do not necessarily consider to be indicative of earnings from 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. We also report these special items separately to help investors track amounts related to these activities and to allow investors analyzing our results to identify certain infrequent significant items that they may wish to exclude when considering the trend of ongoing operating results.

Key financial information for the periods ended or at June 30 was as follows (in millions):



	Automotive		Mobility			Ford Credit		Corporate Other			Interest on Debt			Special Items			Adjustments				Total
Second Quarter 2017
Revenues	$	37,113	$	2		$	2,738	$	—		$	—		$	—		$	—			$	39,853
Income/(loss) before income taxes	2,395		(63		)	619		(146		)	(291		)	(248		)	—				2,266
Equity in net income/(loss) of affiliated companies	266		(1		)	8		—			—			—			—				273
Cash, cash equivalents, and marketable securities	28,428		4			10,677		—			—			—			—				39,109
Restricted cash	5		7			102		—			—			—			—				114
Total assets	104,151		80			151,047		—			—			—			(7,241		)	(a)	248,037

Second Quarter 2018
Revenues	$	35,905	$	6		$	3,009	$	—		$	—		$	—		$	—			$	38,920
Income/(loss) before income taxes	1,157		(181		)	645		71			(301		)	(42		)	—				1,349
Equity in net income/(loss) of affiliated companies	54		—			6		—			—			—			—				60
Cash, cash equivalents, and marketable securities	25,092		19			11,365		—			—			—			—				36,476
Restricted cash	16		31			146		—			—			—			—				193
Total assets	103,306		470			158,604		—			—			—			(4,301		)	(a)	258,079

	Automotive		Mobility			Ford Credit		Corporate Other			Interest on Debt			Special Items			Adjustments				Total
First Half 2017
Revenues	$	73,588	$	4		$	5,407	$	—		$	—		$	—		$	—			$	78,999
Income/(loss) before income taxes	4,570		(127		)	1,100		(218		)	(584		)	(224		)	—				4,517
Equity in net income/(loss) of affiliated companies	605		(1		)	15		—			—			—			—				619

First Half 2018
Revenues	$	74,917	$	10		$	5,952	$	—		$	—		$	—		$	—			$	80,879
Income/(loss) before income taxes	2,889		(283		)	1,286		(15		)	(590		)	(19		)	—				3,268
Equity in net income/(loss) of affiliated companies	272		—			12		—			—			—			—				284

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