Segment Information (Notes)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We report segment information consistent with the way our chief operating decision maker (“CODM”) evaluates the operating results and performance of the Company.

On January 1, 2023, we implemented a new operating model and reporting structure. As a result of this change, we analyze the results of our business through the following segments: Ford Blue, Ford Model e, and Ford Pro (combined, replacing the previous Automotive segment), Ford Next (previously the Mobility segment), and Ford Credit. Company adjusted earnings before interest and taxes (“EBIT”) includes the financial results of these five reportable segments and Corporate Other, and net income comprises the financial results of the five reportable segments and Corporate Other, as well as Interest on Debt, Special Items, and Taxes.

Additionally, past service pension and OPEB income and expense plus related assets, previously reported in the Automotive segment, have been realigned to Corporate Other.

Prior period amounts were adjusted retrospectively to reflect each of the above changes.

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

Ford Blue Segment

Ford Blue primarily includes the sale of Ford and Lincoln internal combustion engine (“ICE”) and hybrid vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing Ford and Lincoln ICE and hybrid vehicles. Additionally, this segment provides hardware engineering and manufacturing capabilities to Ford Model e and manufactures vehicles on behalf of Ford Pro and, in certain cases, Ford Model e. Ford Blue also includes:

•All sales for markets not presently in scope for Ford Model e or Ford Pro (as further described below)

•In markets outside of the United States and Canada, sales to commercial, government, and rental customers of ICE and hybrid vehicles not considered core to Ford Pro

•Sales of electric vehicles (“EVs”) by our unconsolidated affiliates in China

•All sales of vehicles manufactured and sold to other OEMs

Ford Model e Segment

Ford Model e primarily includes the sale of our electric vehicles, service parts, accessories, and digital services for retail customers, together with the associated costs of development, manufacture, and distribution of the vehicles, parts, accessories, and services. This segment focuses on developing EV and digital vehicle technologies, as well as software development. Additionally, Ford Model e provides software and connected vehicle technologies on behalf of the enterprise, and manufactures certain EVs, including for Ford Pro. Ford Model e operates in North America, Europe, and China. Ford Model e also includes EV and related sales not considered core to Ford Pro to commercial, government, and rental customers in Europe, China, and Mexico.

Ford Pro Segment

Ford Pro primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. Included in this segment are sales of all core Ford Pro vehicles, such as Super Duty and the Transit range of vans in North America and Europe and all sales of Ranger in Europe. In the United States and Canada, Ford Pro also includes all vehicle sales to commercial, government, and rental customers. This segment focuses on selling ICE, hybrid, and electric vehicles, and providing digital and physical services to optimize and maintain fleets, including telematics and EV charging solutions. This segment reflects external sales of vehicles produced by Ford Blue and Ford Model e and the costs (including intersegment markup) associated with acquiring vehicles for sale and providing services. Ford Pro operates in North America and Europe.

Ford Next Segment

The Ford Next segment (formerly the Mobility segment) primarily includes expenses and investments for emerging business initiatives aimed at creating value for Ford in vehicle-adjacent market segments. 

NOTE 26. SEGMENT INFORMATION (Continued)

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, past service pension and OPEB income and expense, interest income (excluding Ford Credit interest income and interest earned on our extended service contract portfolio) and gains and losses from our cash, cash equivalents, and marketable securities (excluding gains and losses on investments in equity securities), 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, that are not allocated to operating segments. These include expenses related to setting and directing global policy, providing oversight and stewardship, and promoting the Company’s interests. Corporate Other assets include: cash, cash equivalents and marketable securities, tax related assets, defined benefit pension plan net assets, and other assets managed centrally.

Interest on Debt

Interest on Debt is presented as a separate reconciling item and consists of interest expense on Company debt excluding Ford Credit.

Special Items

Special Items are presented as a separate reconciling item. They consist of (i) pension and OPEB remeasurement gains and losses, (ii) gains and losses on investments in equity securities, (iii) significant personnel expenses, supplier- and 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 (iv) other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities. Our management ordinarily 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 26. SEGMENT INFORMATION (Continued)

Segment Revenue, Cost, and Asset Principles for Ford Blue, Ford Model e, and Ford Pro

External vehicle and digital services revenue is generally vehicle-specific and included in the segment responsible for the external vehicle sale. A majority of parts and accessories revenue and cost is attributed to customer sales channels or vehicle lines based on recent end customer sales and is included in the respective segment.

In the normal course of business, Ford Blue, Ford Model e, and Ford Pro transact between segments and cooperate to leverage synergies, including developing and manufacturing vehicles on behalf of another segment. When one segment produces a vehicle that is sold externally by another segment, an intersegment transaction occurs. The producing segment will report intersegment revenue to recoup the costs associated with the unit produced. This includes material cost, labor and overhead (including depreciation and amortization), inbound freight, and an intersegment markup. The intersegment markup amount is set to deliver a competitive return to the producing segment for its manufacturing and distribution service. Costs are reflected in the associated segment externally reporting the vehicle sale, as detailed in the table below:

Income Statement Elements	Examples	Segment Reporting
Costs specific to a particular vehicle	Bill of material cost and initial warranty accrual	Reported in the segment externally selling the vehicle
Costs identifiable by product line	Manufacturing and logistics costs, depreciation & amortization expense, direct research & development costs	Typically identifiable to the product line or production location. Reported in the segment externally selling the vehicle, based on relative volume
Shared costs	Selling, general & administrative expense, and indirect/cross product line research & development costs	Typically shared across all segments, generally based on relative volume. Certain costs clearly linked to a segment are reported in the specific segment
Intersegment markup for intersegment vehicle transactions	Contract manufacturing and distribution fees	Reported in the segment externally selling the vehicle, for each applicable vehicle transaction

Assets are reported in each segment, aligned to the appropriate operational responsibility. Manufacturing assets, e.g., our plants and the machinery and equipment therein, are included in our Ford Blue and Ford Model e segments. Manufacturing assets producing only, or primarily, EVs and related components are reflected in Ford Model e. Manufacturing assets that support the production of ICE and hybrid vehicles, including those producing ICE and electric in the same facility, are included in Ford Blue. Vendor tooling dedicated to producing EV parts is reported in Ford Model e. There are no Ford manufacturing or vendor tooling assets reported in Ford Pro. Regardless of the segment reporting the asset, depreciation and amortization expense is reflected on the basis of production volume and reported in the segment that reports the external vehicle sale.

Equity in net income/(loss) of affiliated companies is included in Income/(Loss) before income taxes, based primarily on which segment the entity supports or has the majority of the entity’s purchases or sales. The table below shows the segment reporting for our most significant unconsolidated entities:

Ford Blue	Ford Model e	Ford Pro
∘ Changan Ford Automobile Corporation, Ltd. (“CAF”)	∘ BlueOval SK, LLC	∘ Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”)
∘ Jiangling Motors Corporation, Ltd. (“JMC”)
∘ AutoAlliance (Thailand) Co., Ltd. (“AAT”)

NOTE 26.  SEGMENT INFORMATION (Continued)

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

	Ford Blue		Ford Model e		Ford Pro		Ford Next		Ford Credit		Corporate Other		Interest on Debt		Special Items			Eliminations/Adjustments			Total
2021
External Revenues	$	80,377	$	3,098	$	42,649	$	118	$	10,073	$	26	$	—	$	—		$	—		$	136,341
Intersegment Revenues (a)	30,089		88		—		—		—		—		—		—			(30,177)			—
Total Revenues	$	110,466	$	3,186	$	42,649	$	118	$	10,073	$	26	$	—	$	—		$	(30,177)		$	136,341
Income/(Loss) before income taxes	$	3,293	$	(892)	$	2,665	$	(1,030)	$	4,717	$	1,247	$	(1,803)	$	9,583	(b)	$	—		$	17,780
Depreciation and tooling amortization	3,445		142		1,423		8		1,666		67		—		567			—			7,318
Interest expense	—		—		—		—		2,790		—		1,803		—			—			4,593
Investment-related interest income	91		—		21		—		38		104		—		—			—			254
Equity in net income/(loss) of affiliated companies	302		(10)		275		(258)		31		2		—		(15)			—			327
Cash outflow for capital spending (c)	5,214		516		59		46		44		348		—		—			—			6,227
Total assets	55,456		2,563		1,809		3,325		134,428		60,871		—		—			(1,417)		(d)	257,035
2022
External Revenues	$	94,762	$	5,253	$	48,939	$	99	$	8,978	$	26	$	—	$	—		$	—		$	158,057
Intersegment Revenues (a)	36,020		121		—		—		—		—		—		—			(36,141)			—
Total Revenues	$	130,782	$	5,374	$	48,939	$	99	$	8,978	$	26	$	—	$	—		$	(36,141)		$	158,057
Income/(Loss) before income taxes	$	6,847	$	(2,133)	$	3,222	$	(926)	$	2,657	$	748	$	(1,259)	$	(12,172)	(e)	$	—		$	(3,016)
Depreciation and tooling amortization	3,365		249		1,522		5		2,281		95		—		157			—			7,674
Interest expense	—		—		—		—		3,334		—		1,259		—			—			4,593
Investment-related interest income	59		—		16		—		178		386		—		—			—			639
Equity in net income/(loss) of affiliated companies	270		(15)		412		(315)		27		1		—		(3,263)		(f)	—			(2,883)
Cash outflow for capital spending (c)	4,702		1,336		26		23		58		424		—		297			—			6,866
Total assets	56,023		5,285		2,177		392		137,954		55,580		—		—			(1,527)		(d)	255,884
2023
External Revenues	$	101,934	$	5,897	$	58,058	$	3	$	10,290	$	9	$	—	$	—		$	—		$	176,191
Intersegment Revenues (a)	38,693		629		—		—		—		—		—		—			(39,322)			—
Total Revenues	$	140,627	$	6,526	$	58,058	$	3	$	10,290	$	9	$	—	$	—		$	(39,322)		$	176,191
Income/(Loss) before income taxes	$	7,462	$	(4,701)	$	7,222	$	(138)	$	1,331	$	(760)	$	(1,302)	$	(5,147)	(g)	$	—		$	3,967
Depreciation and tooling amortization	3,378		505		1,291		12		2,354		103		—		47			—			7,690
Interest expense	—		—		—		—		6,311		—		1,302		—			—			7,613
Investment-related interest income	110		1		32		—		522		902		—		—			—			1,567
Equity in net income/(loss) of affiliated companies	337		(37)		589		(29)		32		1		—		(479)		(h)	—			414
Cash outflow for capital spending (c)	4,963		2,861		7		6		80		315		—		4			—			8,236
Total assets	58,990		13,648		2,942		207		148,521		52,521		—		—			(3,519)		(d)	273,310

__________

(a)Intersegment revenues only reflect finished vehicle transactions between Ford Blue, Ford Model e, and Ford Pro where there is an intersegment markup and are recognized at the time of the intersegment transaction.

(b)Primarily reflects gains/(losses) on our Rivian investment and mark-to-market adjustments for our global pension and OPEB plans, partially offset by restructuring related actions and the loss on extinguishment of debt.

(c)Ford Blue includes $366 million, $305 million, and $909 million of spending attributable to electric vehicles at shared manufacturing plants in 2021, 2022, and 2023, respectively. Total electric vehicle spending, including Ford Blue and Ford Model e, was $882 million, $1,641 million, and $3,770 million in 2021, 2022, and 2023, respectively.

(d)Primarily includes eliminations of intersegment transactions occurring in the ordinary course of business.

(e)Primarily reflects gains/(losses) on our Rivian investment and the impairment of our Argo AI equity method investment.

(f)Primarily reflects the impairment of our Argo AI equity method investment.

(g)Primarily reflects mark-to-market adjustments for our global pension and OPEB plans, restructuring actions in Europe and China, and an accrual for the Transit Connect customs matter.     

(h)Primarily reflects our share of charges from an equity method investment resulting from Ford's ongoing restructuring actions in China.

NOTE 26.  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):

	2021				2022				2023
	Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)
United States	$	87,012	$	44,271	$	105,481	$	41,925	$	116,995	$	42,235
Canada	11,153		5,773		12,590		5,739		13,391		6,147
United Kingdom	7,607		1,383		8,220		1,264		8,968		1,868
Mexico	1,440		3,903		1,813		4,255		2,774		5,222
All Other	29,129		8,170		29,953		6,854		34,063		6,733
Total Company	$	136,341	$	63,500	$	158,057	$	60,037	$	176,191	$	62,205

__________

(a)    Includes Net property and Net investment in operating leases from our consolidated balance sheets.