Segment Information (Notes)

12 Months Ended

Dec. 31, 2019

We report segment information consistent with the way our chief operating decision maker evaluates the operating results and performance of the Company. Accordingly, we analyze the results of our business through the following segments: Automotive, Mobility, and Ford Credit. 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 the following regional business units: North America, South America, Europe, China (including Taiwan), Asia Pacific Operations, and Middle East & Africa.

Mobility Segment

Our Mobility segment primarily includes development costs related to our autonomous vehicles and our investment in mobility through Ford Smart Mobility LLC (“FSM”). Autonomous vehicles includes self-driving systems development and vehicle integration, autonomous vehicle research and advanced engineering, autonomous vehicle transportation-as-a-service network development, user experience, and business strategy and business development teams. FSM designs and builds mobility products and subscription and other services on its own, and collaborates with service providers and technology companies. In 2019, we began recording in the Mobility segment subscription related income previously reported in the Automotive segment. This income is generated from services managed in our Mobility segment.

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 expenses, interest income (excluding interest earned on our extended service contract portfolio that is included in our Automotive segment) and gains and losses from our cash, cash equivalents, marketable securities, and other investments, and foreign exchange derivatives gains and losses associated with intercompany lending. Corporate governance expenses are primarily administrative, delivering benefit on behalf of the global enterprise, and are not allocated to specific Automotive business units or operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. The underlying assets and liabilities associated with these activities 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.

Special Items

Special Items are presented as a separate reconciling item. They consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel expenses, dealer-related costs, and facility-related charges stemming from 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.

NOTE 28. SEGMENT INFORMATION (Continued)

Key financial information for the years ended or at December 31 was as follows (in millions):



	Automotive			Mobility			Ford Credit		Corporate Other			Interest on Debt			Special Items			Adjustments				Total
2017
Revenues	$	145,653		$	10		$	11,113	$	—		$	—		$	—		$	—			$	156,776
Income/(loss) before income taxes	8,084			(299		)	2,310		(457		)	(1,190		)	(289		)	—				8,159
Depreciation and tooling amortization	4,963			—			4,278		—			—			—			—				9,241
Interest expense	—			—			3,174		—			1,190			—			—				4,364
Investment-related interest income	93			—			118		248			—			—			—				459
Equity in net income/(loss) of affiliated companies	1,169			—			32		—			—			—			—				1,201
Cash outflow for capital spending	7,001			3			45		—			—			—			—				7,049
Cash, cash equivalents, marketable securities, and restricted cash	26,499			11			12,563		—			—			—			—				39,073
Total assets	103,573			96			160,594		—			—			—			(5,767		)	(a)	258,496

2018
Revenues	$	148,294		$	26		$	12,018	$	—		$	—		$	—		$	—			$	160,338
Income/(loss) before income taxes	5,422			(674		)	2,627		(373		)	(1,228		)	(1,429		)	—				4,345
Depreciation and tooling amortization	5,368			16			4,001		—			—			—			—				9,385
Interest expense	—			—			3,929		—			1,228			—			—				5,157
Investment-related interest income	109			—			201		357			—			—			—				667
Equity in net income/(loss) of affiliated companies	95			—			28		—			—			—			—				123
Cash outflow for capital spending	7,677			60			48		—			—			—			—				7,785
Cash, cash equivalents, marketable securities, and restricted cash	22,999			86			11,055		—			—			—			—				34,140
Total assets	100,105			558			161,678		—			—			—			(5,801		)	(a)	256,540

2019
Revenues	$	143,599		$	41		$	12,260	$	—		$	—		$	—		$	—			$	155,900
Income/(loss) before income taxes	4,926			(1,186		)	2,998		(359		)	(1,020		)	(5,999		)	—				(640		)
Depreciation and tooling amortization	6,798			29			3,666		—			—			—			—				10,493
Interest expense	—			—			4,389		—			1,020			—			—				5,409
Investment-related interest income	167			—			306		336			—			—			—				809
Equity in net income/(loss) of affiliated companies	(11		)	12			31		—			—			—			—				32
Cash outflow for capital spending	7,481			99			52		—			—			—			—				7,632
Cash, cash equivalents, marketable securities, and restricted cash	22,186			138			12,564		—			—			—			—				34,888
Total assets	101,348			1,034			160,697		—			—			—			(4,542		)	(a)	258,537

__________


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

NOTE 28. 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):



	2017				2018				2019
	Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)
United States	$	93,844	$	42,504	$	97,546	$	44,940	$	98,729	$	46,434
Canada	10,580		4,771		10,541		4,604		10,855		4,842
United Kingdom	9,619		1,691		9,703		1,650		8,899		1,541
Germany	7,265		3,182		7,894		3,593		7,930		3,225
All Other	35,468		11,414		34,654		10,510		29,487		9,657
Total Company	$	156,776	$	63,562	$	160,338	$	65,297	$	155,900	$	65,699

__________

(a)

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