Segment Information (Notes)

3 Months Ended

Mar. 31, 2020

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), and

the International Markets Group.

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 services on its own, and collaborates with service providers and technology 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 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 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.

NOTE 20. SEGMENT INFORMATION (Continued)

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



	Automotive			Mobility			Ford Credit		Corporate Other			Interest on Debt			Special Items			Adjustments				Total
First Quarter 2019
Revenues	$	37,239		$	6		$	3,097	$	—		$	—		$	—		$	—			$	40,342
Income/(loss) before income taxes	2,009			(288		)	801		(75		)	(245		)	(592		)	—				1,610
Equity in net income/(loss) of affiliated companies	17			2			6		—			—			—			—				25
Cash, cash equivalents, marketable securities, and restricted cash	24,034			167			13,700		—			—			—			—				37,901
Total assets	102,113			949			164,409		—			—			—			(4,190		)	(a)	263,281

First Quarter 2020
Revenues	$	31,340		$	13		$	2,967	$	—		$	—		$	—		$	—			$	34,320
Income/(loss) before income taxes	(177		)	(334		)	30		(151		)	(227		)	(287		)	—				(1,146		)
Equity in net income/(loss) of affiliated companies	(47		)	—			6		—			—			—			—				(41		)
Cash, cash equivalents, marketable securities, and restricted cash	34,212			116			12,231		—			—			—			—				46,559
Total assets	111,388			941			156,393		—			—			—			(4,572		)	(a)	264,150

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(a)

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