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Equity in Net Assets of Affiliated Companies (Notes)
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY IN NET ASSETS OF AFFILIATED COMPANIES EQUITY IN NET ASSETS OF AFFILIATED COMPANIES
We use the equity method of accounting for our investments in entities over which we do not have control, but over whose operating and financial policies we are able to exercise significant influence.

Our carrying value and ownership percentages of our equity method investments at December 31 were as follows (in millions, except percentages):
 Investment BalanceOwnership Percentage
202220232023
BlueOval SK, LLC$690 $3,254 50 %
Ford Otomotiv Sanayi Anonim Sirketi479 807 41 
Jiangling Motors Corporation, Limited (a)471 495 32 
Changan Ford Automobile Corporation, Limited (b)409 225 50 
AutoAlliance (Thailand) Co., Ltd.346 344 50 
Ionity Holding GmbH & Co. KG67 96 15 
FFS Finance South Africa (Pty) Limited70 65 50 
Other266 262 Various
Total$2,798 $5,548 
__________
(a)In 2022 and 2023, Jiangling Motors Corporation, Limited recorded restructuring charges, our share of which was $13 million and $12 million, respectively. These charges are included in Equity in net income/(loss) of affiliated companies.
(b)In 2022 and 2023, Changan Ford Automobile Corporation, Limited recorded long-lived asset and other asset impairment charges as well as restructuring charges, our share of which was $368 million and $432 million, respectively. These charges are included in Equity in net income/(loss) of affiliated companies.

We recorded $452 million, $452 million, and $381 million of dividends from these affiliated companies for the years ended December 31, 2021, 2022, and 2023, respectively.

An aggregate summary of the balance sheets and income statements of our equity method investees, on a stand alone basis, as reported by those investees at December 31 is below (in millions). Our investment in each equity method investee is reported in Equity in net assets of affiliated companies, and our proportionate share of each of the entities’ income/(loss) is reported in Equity in net income/(loss) of affiliated companies.

Summarized Balance Sheet20222023
Current assets$10,361 $11,223 
Non-current assets11,142 16,907 
Total assets$21,503 $28,130 
Current liabilities$10,371 $11,232 
Non-current liabilities4,498 6,572 
Total liabilities$14,869 $17,804 
Equity attributable to noncontrolling interests$— $61 

For the years ended December 31,
Summarized Income Statement202120222023
Total revenue$27,760 $27,153 $31,052 
Income/(Loss) before income taxes (a)1,002 (1,806)991 
Net income/(loss) (a)1,029 (1,769)1,207 
Net income/(loss) attributable to noncontrolling interests— (8)(63)
__________
(a)    The 2022 results reflects Argo AI’s impairment, partially offset by the net income/(loss) of our other equity method investees.
NOTE 14.  EQUITY IN NET ASSETS OF AFFILIATED COMPANIES (Continued)

In the ordinary course of business, we buy/sell various products and services including vehicles, parts, and components to/from our equity method investees. In addition, we receive royalty income.

Transactions with equity method investees reported for the years ended or at December 31 were as follows (in millions):
For the years ended December 31,
Income Statement202120222023
Sales $4,777 $4,369 $5,237 
Purchases 9,245 9,670 13,457 
Royalty income458 483 329 
Balance Sheet20222023
Receivables$1,007 $1,070 
Payables1,676 1,766 

Argo AI

In the third quarter of 2022, Ford made the strategic decision to shift our capital spending from L4 technology being developed by Argo AI to advanced L2/L3 systems, which we believe will ultimately be essential to achieve profitable commercialization of L4 autonomy at scale in the future. We determined that Argo AI no longer had value as a going concern, and as a result, we reassessed the carrying value of our investment as of September 30, 2022. Our valuation assumed an orderly conclusion of operations at Argo AI, in which the cash required to satisfy the remaining obligations would consume all of Argo AI’s remaining capital. In addition, we assessed whether Argo AI’s technology components had value in isolation, and we concluded that the cost to integrate into anticipated technology ecosystems would be prohibitive. Accordingly, we recorded a $2.7 billion pre-tax impairment in the third quarter of 2022. The non-cash charge was reported in Equity in net income/(loss) of affiliated companies.

In the fourth quarter of 2022, Ford and Volkswagen AG, who held equal interests that together comprised a majority ownership of Argo AI, initiated the process of exiting the joint development of highly automated driving technology (L4) through Argo AI. Argo AI is in the process of winding down operations, with no expected future funding required.