Segment Information (Notes)

12 Months Ended

Dec. 31, 2021

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.  Accordingly, we analyze the results of our business through the following segments:  Automotive, Mobility, and Ford Credit.

Beginning in 2021, consistent with how our CODM assesses performance of the segments and makes decisions about resource allocations, we changed the measurement of our segments as follows: (i) costs and benefits related to enterprise connectivity activities included in the Mobility segment are reported in the Automotive segment; (ii) certain corporate governance expenses that benefit the global enterprise reported in the Automotive segment are reported as part of Corporate Other; and (iii) cash and other centrally managed corporate assets reported in the Automotive segment are realigned to Corporate Other.

In addition, we realigned tax-related assets within our segments to reflect our adoption of ASU 2019-12 as of January 1, 2021 (see Note 3).

Effective with fourth quarter 2021 reporting, special items now include gains and losses on investments in equity securities.

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

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

Automotive Segment

The 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 and enterprise connectivity. The segment includes the following regional business units:  North America, South America, Europe, China (including Taiwan), and the International Markets Group.

Mobility Segment

The Mobility segment primarily includes development costs for Ford’s autonomous vehicles and related businesses, Ford’s equity ownership in Argo AI (a developer of autonomous driving systems), and other mobility businesses and investments.

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, 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; other investments; 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. The underlying liability is reported in the Automotive segment and in Corporate Other.

NOTE 26.  SEGMENT INFORMATION (Continued)

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, 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)

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

	Automotive		Mobility		Ford Credit		Corporate Other		Interest on Debt		Special Items			Adjustments			Total
2019
Revenues	$	143,604	$	36	$	12,260	$	—	$	—	$	—		$	—		$	155,900
Income/(Loss) before income taxes	4,888		(941)		2,998		(688)		(1,020)		(5,877)		(a)	—			(640)
Depreciation and tooling amortization	5,494		8		3,666		47		—		1,278			—			10,493
Interest expense	—		—		4,389		—		1,020		—			—			5,409
Investment-related interest income	167		—		306		336		—		—			—			809
Equity in net income/(loss) of affiliated companies	83		—		31		2		—		(84)		(b)	—			32
Cash outflow for capital spending	7,362		23		52		195		—		—			—			7,632
Total assets	63,586		419		160,964		36,190		—		—			(2,622)		(c)	258,537
2020
Revenues	$	115,894	$	47	$	11,203	$	—	$	—	$	—		$	—		$	127,144
Income/(Loss) before income taxes	1,706		(1,052)		2,608		(726)		(1,649)		(2,003)		(d)	—			(1,116)
Depreciation and tooling amortization	5,209		8		3,269		52		—		236			—			8,774
Interest expense	—		—		3,402		—		1,649		—			—			5,051
Investment-related interest income	158		—		94		200		—		—			—			452
Equity in net income/(loss) of affiliated companies	296		(133)		20		1		—		(142)		(b)	—			42
Cash outflow for capital spending	5,483		44		40		175		—		—			—			5,742
Total assets	62,741		3,459		157,637		45,410		—		—			(1,986)		(c)	267,261
2021
Revenues	$	126,150	$	118	$	10,073	$	—	$	—	$	—		$	—		$	136,341
Income/(Loss) before income taxes	7,397		(1,030)		4,717		(1,084)		(1,803)		9,583		(e)	—			17,780
Depreciation and tooling amortization	5,024		8		1,666		53		—		567			—			7,318
Interest expense	—		—		2,790		—		1,803		—			—			4,593
Investment-related interest income	112		—		38		104		—		—			—			254
Equity in net income/(loss) of affiliated companies	567		(258)		31		2		—		(15)			—			327
Cash outflow for capital spending	5,979		46		44		158		—		—			—			6,227
Total assets	68,969		3,325		134,428		51,730		—		—			(1,417)		(c)	257,035

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(a)Primarily reflects Global Redesign actions in Europe and mark-to-market adjustments for our global pension and OPEB plans. Prior period amounts have been reclassified in accordance with special item reporting.

(b)Prior period amounts have been reclassified in accordance with special item reporting.

(c)Primarily includes eliminations of intersegment transactions occurring in the ordinary course of business. Prior period amounts have been revised to reflect adoption of ASU 2019-12.

(d)Primarily reflects Global Redesign actions in South America and Europe, mark-to-market adjustments for our global pension and OPEB plans, and the field service action for Takata airbag inflators, partially offset by the gain on our investment in Argo AI as a result of the transaction with Argo AI and VW in the second quarter of 2020. Prior period amounts have been reclassified in accordance with special item reporting.

(e)Primarily reflects gains/(losses) on investments in equity securities (including a $9.1 billion gain on our Rivian equity investment) and mark-to-market adjustments for our global pension and OPEB plans, partially offset by Global Redesign actions and the loss on extinguishment of debt.

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):

	2019				2020				2021
	Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)
United States	$	98,729	$	46,434	$	82,535	$	45,360	$	87,012	$	44,271
Canada	10,855		4,842		8,711		5,111		11,153		5,773
Germany	7,930		3,225		6,526		3,197		6,237		2,708
United Kingdom	8,899		1,541		6,110		1,401		7,607		1,383
Mexico	1,451		2,909		1,030		3,669		1,440		3,903
All Other	28,036		6,748		22,232		6,296		22,892		5,462
Total Company	$	155,900	$	65,699	$	127,144	$	65,034	$	136,341	$	63,500

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