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Presentation (Notes)
 12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
PRESENTATION PRESENTATION

For purposes of this report, “Ford,” the “Company,” “we,” “our,” “us,” or similar references mean Ford Motor Company, our consolidated subsidiaries, and our consolidated VIEs of which we are the primary beneficiary, unless the context requires otherwise. We also make reference to Ford Motor Credit Company LLC, herein referenced to as Ford Credit. Our consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

Certain Transactions Between Automotive, Mobility, and Ford Credit

Intersegment transactions occur in the ordinary course of business. Additional detail regarding certain transactions and the effect on each segment at December 31 was as follows (in billions):
 
2018
 
2019
 
Automotive
 
Mobility
 
Ford Credit
 
Automotive
 
Mobility
 
Ford Credit
Trade and other receivables (a)
 
 
 
 
$
6.8

 
 
 
 
 
$
4.9

Unearned interest supplements and residual support (b)
 
 
 
 
(6.8
)
 
 
 
 
 
(6.7
)
Finance receivables and other (c)
 
 
 
 
2.1

 
 
 
 
 
2.1

Intersegment receivables/(payables)
$
(1.2
)
 
$
(1.1
)
 
2.3

 
$
(2.6
)
 
$
0.1

 
2.5

__________
(a)
Automotive receivables (generated primarily from vehicle and parts sales to third parties) sold to Ford Credit.  
(b)
Automotive pays amounts to Ford Credit at the point of retail financing or lease origination which represent interest supplements and residual support.
(c)
Primarily receivables with entities that are consolidated subsidiaries of Ford.  

Change in Accounting

As of January 1, 2019, we changed our accounting method for reporting early termination losses related to customer defaults on Ford Credit’s operating leases. Previously, we presented the early termination loss reserve on operating leases due to customer default events as part of the allowance for credit losses within Net investment in operating leases. We now consider the effects of operating lease early terminations when determining depreciation estimates, which are included as part of accumulated depreciation within Net investment in operating leases. We believe this change in accounting method is preferable as the characterization of these changes is better reflected as depreciation.

We have retrospectively applied this change in accounting method to all prior periods. At December 31, 2018, this reclassification increased accumulated depreciation and decreased allowance for credit losses by $78 million within Net investment in operating leases. This change had no impact on our consolidated income statement, consolidated balance sheet, or total cash flows from operating activities in the consolidated statement of cash flows for the years presented.