Segment Information (Notes)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

In conjunction with our expanded business model to become an automotive, financial services, and mobility company, beginning with the second quarter of 2016, we have changed our reportable segment disclosures. Reflecting the manner in which our Chief Operating Decision Maker manages our businesses, including resource allocation and performance assessment, we have four operating segments that represent the primary businesses reported in our consolidated financial statements. These operating segments are: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations.

Automotive and Financial Services comprise separate reportable segments. Ford Smart Mobility LLC and Central Treasury Operations did not meet the quantitative thresholds in this reporting period to qualify as reportable segments; therefore, these operating segments are combined and disclosed below as All Other. Prior-period amounts have been adjusted retrospectively to reflect the change to our reportable segments.

Below is a description of our reportable segments and the business activities included in All Other.

Automotive Segment

Our Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories worldwide, together with the associated costs to develop, manufacture, distribute, and service the vehicles, parts, and accessories. The segment includes 5 regional business units:  North America, South America, Europe, Middle East & Africa, and Asia Pacific.

Financial Services Segment

The Financial Services segment primarily includes our vehicle-related financing and leasing activities at Ford Credit.

All Other

All Other is a combination of operating segments that did not meet the quantitative thresholds in this reporting period to qualify as reportable segments. All Other consists of our Central Treasury Operations (formerly Other Automotive) and Ford Smart Mobility LLC. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment. Interest income, interest expense, gains and losses on cash equivalents and marketable securities, and foreign exchange derivatives associated with intercompany lending, are included in the results of Central Treasury Operations. The underlying assets and liabilities, primarily cash and cash equivalents, marketable securities, debt, and derivatives, remain with the Automotive segment.

Ford Smart Mobility LLC is a new subsidiary formed to design, build, grow, and invest in emerging mobility services. Designed to compete like a start-up company, Ford Smart Mobility LLC will design and build mobility services on its own, and collaborate with start-ups and tech companies.

Special Items

In addition, our results include Special Items that consist of (i) pension and other postretirement employee benefits (“OPEB”) remeasurement gains and losses, (ii) significant personnel and dealer-related costs stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) certain infrequent significant items that we generally do not consider to be indicative of our 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. Special items are presented as a separate reconciling item.

NOTE 3.SEGMENT INFORMATION(Continued)

Key operating data for our business segments for the periods ended or at June 30 were as follows (in millions):

	Automotive		Financial Services		All Other			Special Items			Adjustments				Total
Second Quarter 2016
Revenues	$	36,932	$	2,553	$	—		$	—		$	—			$	39,485
Pre-tax results - income/(loss)	2,832		385		(224		)	(118		)	—				2,875
Cash, cash equivalents, and marketable securities	27,210		12,087		—			—			—				39,297
Total assets	99,272		145,303		6			—			(4,903		)	(a)	239,678
Debt	13,071		126,843		—			—			—				139,914
Operating cash flows	4,144		2,283		—			—			1,315			(b)	7,742
Second Quarter 2015
Revenues	$	35,105	$	2,158	$	—		$	—		$	—			$	37,263
Pre-tax results - income/(loss)	2,962		491		(167		)	—			—				3,286
Cash, cash equivalents, and marketable securities	20,729		10,573		—			—			—				31,302
Total assets	92,610		126,383		—			—			(2,866		)	(a)	216,127
Debt	13,713		109,813		—			—			—				123,526
Operating cash flows	1,887		1,755		—			—			1,568			(b)	5,210
	Automotive		Financial Services		All Other			Special Items			Adjustments				Total
First Half 2016
Revenues	$	72,189	$	5,014	$	—		$	—		$	—			$	77,203
Pre-tax results - income/(loss)	6,296		884		(350		)	(304		)	—				6,526
Operating cash flows	6,871		2,808		—			—			2,155			(b)	11,834
First Half 2015
Revenues	$	66,905	$	4,258	$	—		$	—		$	—			$	71,163
Pre-tax results - income/(loss)	4,484		960		(379		)	—			—				5,065
Operating cash flows	2,412		3,162		—			—			2,049			(b)	7,623

__________

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

(b) We measure and evaluate our Automotive segment operating cash flow on a different basis than Net cash provided by/(used in) operating activities in our consolidated statement of cash flows. Automotive segment operating cash flow includes additional elements management considers to be related to our Automotive operating activities, primarily capital spending, and excludes outflows for funded pension contributions and separation payments that are considered operating cash flows under U.S. GAAP. The table below quantifies these reconciling adjustments to Net cash provided by/(used in) operating activities for the periods ended June 30 (in millions):

	Second Quarter						First Half
	2016			2015			2016			2015
Automotive capital spending	$	1,686		$	1,719		$	3,183		$	3,505
Separation payments	(148		)	(109		)	(158		)	(510		)
Funded pension contributions	(221		)	(91		)	(589		)	(853		)
Other	(2		)	49			(281		)	(93		)
Total operating cash flow adjustments	$	1,315		$	1,568		$	2,155		$	2,049