Segment Information (Notes)

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We report segment information consistent with the way our chief operating decision maker (“CODM”), our President and Chief Executive Officer, evaluates the operating results and performance of the Company. Accordingly, for 2024, we analyze the results of our business through the following reportable segments: Ford Blue, Ford Model e, Ford Pro, Ford Next, and Ford Credit.

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 primarily includes expenses and investments for emerging business initiatives aimed at creating value for Ford in vehicle-adjacent market segments. 

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.

NOTE 25. SEGMENT INFORMATION (Continued)

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.

CODM Evaluation of the Business

When we report segment earnings before interest and taxes (“Segment EBIT”) for each of the Ford Blue, Ford Model e, Ford Pro, and Ford Next segments, it consists of the earnings for the particular segment and does not include interest and taxes. Ford Credit segment earnings include interest and exclude taxes (“Segment EBT”). Each segment’s EBIT/EBT also excludes the results reported in Corporate Other and Special Items. For the Ford Blue, Ford Model e, and Ford Pro segments, our CODM reviews Segment EBIT and Segment EBIT margin, as well as market share, revenue, and wholesale volume to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes. For Segment EBIT, our CODM reviews the year-over-year change in EBIT, sequential change in EBIT, and change in EBIT from internal forecasts/budgets. Revenue and certain of our costs, such as material costs, generally vary directly with changes in volume and mix of vehicles. As a result, our CODM reviews the EBIT impact driven by changes in volume and mix, the EBIT impact driven by changes in exchange, and the EBIT impact driven by changes in net pricing and cost categories at constant volume and mix and/or exchange. For the Ford Next segment, our CODM reviews segment EBIT to evaluate performance. For the Ford Credit segment, our CODM reviews Segment EBT to evaluate performance and allocate resources. Expense information is provided to and reviewed by the CODM on a consolidated basis to evaluate cost efficiency and company level performance.

NOTE 25. 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.

Purchased regulatory credit compliance assets are reported in Ford Blue. There are no Ford manufacturing, vendor tooling, or regulatory credit compliance assets reported in Ford Pro. Depreciation and amortization expense is reflected on the basis of production volume. Regulatory compliance credit expense is allocated by vehicle line between Ford Blue and Ford Pro segments. Regardless of the segment reporting the asset, the related expenses are 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 25.  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		Unallocated Amounts and Eliminations (a)		Total
2022
External revenues	$	94,762	$	5,253	$	48,939	$	99	$	8,978	$	26	$	158,057
Intersegment revenues (b)	36,020		121		—		—		—		(36,141)		—
Total revenues	$	130,782	$	5,374	$	48,939	$	99	$	8,978	$	(36,115)	$	158,057
Other segment items (c)	123,935		7,507		45,717		1,025		6,321
Segment EBIT/EBT	$	6,847	$	(2,133)	$	3,222	$	(926)	$	2,657			$	9,667
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other													748
Interest on debt (excludes $3,334 of Ford Credit interest on debt)													(1,259)
Special items (d)													(12,172)
Income/(Loss) before income taxes													$	(3,016)
Other Segment Disclosures
Depreciation and tooling amortization	$	3,365	$	249	$	1,522	$	5	$	2,281	$	252	$	7,674
Investment-related interest income	59		—		16		—		178		386		639
Equity in net income/(loss) of affiliated companies	270		(15)		412		(315)		27		(3,262)		(2,883)
Cash outflow for capital spending (e)	4,702		1,336		26		23		58		721		6,866
Total assets	56,023		5,285		2,177		392		137,954		54,053		255,884
2023
External Revenues	$	101,934	$	5,897	$	58,058	$	3	$	10,290	$	9	$	176,191
Intersegment Revenues (b)	38,693		629		—		—		—		(39,322)		—
Total Revenues	$	140,627	$	6,526	$	58,058	$	3	$	10,290	$	(39,313)	$	176,191
Other segment items (c)	133,165		11,227		50,836		141		8,959
Segment EBIT/EBT	$	7,462	$	(4,701)	$	7,222	$	(138)	$	1,331			$	11,176
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other													(760)
Interest on debt (excludes $6,311 of Ford Credit interest on debt)													(1,302)
Special items (f)													(5,147)
Income/(Loss) before income taxes													$	3,967
Other Segment Disclosures
Depreciation and tooling amortization	$	3,378	$	505	$	1,291	$	12	$	2,354	$	150	$	7,690
Investment-related interest income	110		1		32		—		522		902		1,567
Equity in net income/(loss) of affiliated companies	337		(37)		589		(29)		32		(478)		414
Cash outflow for capital spending (e)	4,963		2,861		7		6		80		319		8,236
Total assets	58,990		13,648		2,942		207		148,521		49,002		273,310

NOTE 25.  SEGMENT INFORMATION (Continued)

	Ford Blue		Ford Model e		Ford Pro		Ford Next		Ford Credit		Unallocated Amounts and Eliminations (a)		Total
2024
External Revenues	$	101,935	$	3,852	$	66,906	$	7	$	12,286	$	6	$	184,992
Intersegment Revenues (b)	43,442		257		—		—		—		(43,699)		—
Total Revenues	$	145,377	$	4,109	$	66,906	$	7	$	12,286	$	(43,693)	$	184,992
Other segment items (c)	140,093		9,185		57,891		57		10,632
Segment EBIT/EBT	$	5,284	$	(5,076)	$	9,015	$	(50)	$	1,654			$	10,827
Reconciliation of Segment EBIT/EBT
Unallocated amounts:
Corporate Other													(619)
Interest on debt (excludes $7,583 of Ford Credit interest on debt)													(1,115)
Special items (g)													(1,860)
Income/(Loss) before income taxes													$	7,233
Other Segment Disclosures
Depreciation and tooling amortization	$	2,952	$	556	$	1,394	$	12	$	2,529	$	124	$	7,567
Investment-related interest income	167		2		52		—		500		819		1,540
Equity in net income/(loss) of affiliated companies	240		(66)		482		(3)		42		(17)		678
Cash outflow for capital spending (e)	4,490		3,843		37		3		94		217		8,684
Total assets	58,791		17,074		3,469		151		157,534		48,177		285,196

__________

(a)Unallocated amounts include Corporate Other (see above description of corporate expenses and corporate assets) and Special Items. Eliminations include intersegment transaction occurring in the ordinary course of business.

(b)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.

(c)Other segment items for the Ford Blue, Ford Model e, and Ford Pro segments primarily consists of: material costs (including commodities and components and purchased vehicles from partners), manufacturing costs (including hourly and salaried wages and fringe, and plant overhead such as utilities and taxes), warranty coverages and field service action costs (including estimated costs to repair, replace, or adjust parts on a vehicle that are defective in factory supplied materials or workmanship), freight & duty costs (including related to the receiving and shipping of components and vehicles), vehicle and software engineering and connectivity costs (including wages and fringe for personnel, prototype materials, testing, and outside services), spending-related costs (including depreciation and amortization of manufacturing and engineering assets, asset retirements and operating leases), advertising and sales promotions costs (including costs for advertising, marketing programs, brand promotions, customer mailings and promotional events, and auto shows), and administrative, information technology, and selling costs (including primarily wages and fringe for salaried personnel and purchased services). Other segment items for the Ford Next segment primarily consists of administrative and information technology costs. Other segment items for the Ford Credit segment primarily consists of interest expense and depreciation.

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

(e)Ford Blue includes $305 million, $909 million, and $844 million of spending attributable to electric vehicles at shared manufacturing plants in 2022, 2023, and 2024, respectively. Total electric vehicle spending, including Ford Blue and Ford Model e, was $1,641 million, $3,770 million, and $4,687 million in 2022, 2023, and 2024, respectively.

(f)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.

(g)Includes a write-down of certain product-specific assets of $391 million and other expenses of $809 million related to the cancellation of a previously planned all-electric three-row SUV program, all of which was recorded in Cost of sales. The amount also reflects restructuring actions in Europe, buyouts for hourly employees in North America, the extended duration of the Oakville Assembly Plant changeover, and pension curtailment and separation costs in North America and Europe, partially offset by mark-to-market adjustments for our global pension and OPEB plans.

NOTE 25.  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):

	2022				2023				2024
	Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)		Revenues		Long-Lived Assets (a)
United States	$	105,481	$	41,925	$	116,995	$	42,235	$	124,968	$	45,392
Canada	12,590		5,739		13,391		6,147		13,412		6,548
United Kingdom	8,220		1,264		8,968		1,868		9,936		2,174
Mexico	1,813		4,255		2,774		5,222		2,634		4,352
All Other	29,953		6,854		34,063		6,733		34,042		6,409
Total Company	$	158,057	$	60,037	$	176,191	$	62,205	$	184,992	$	64,875

__________

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