FORD MOTOR CO | 2013 | FY | 3

SEGMENT INFORMATION

Our operating activity consists of two operating sectors, Automotive and Financial Services.  Segment selection is based on the organizational structure we use to evaluate performance and make decisions on resource allocation, as well as availability and materiality of separate financial results consistent with that structure.

Automotive Sector

Our Automotive sector is divided into four segments:  1) North America, 2) South America, 3) Europe, and 4) Asia Pacific Africa.  Included in each segment, described below, are the associated costs to develop, manufacture, distribute, and service vehicles and parts.

North America segment primarily includes the sale of Ford- and Lincoln-brand vehicles and related service parts and accessories in North America (United States, Canada, and Mexico).  

South America segment primarily includes the sale of Ford-brand vehicles and related service parts and accessories in South America.

Europe segment primarily includes the sale of Ford-brand vehicles, components, and related service parts and accessories in Europe, Turkey, and Russia.

Asia Pacific Africa segment primarily includes the sale of Ford-brand vehicles and related service parts and accessories in the Asia Pacific region and South Africa.  

Revenue from Ford-brand and JMC-brand vehicles produced and distributed by our unconsolidated affiliates are not included in our revenue.

The Other Automotive component of the Automotive sector consists primarily of centrally-managed net interest expense and related fair market value adjustments.

Special items are presented as a separate reconciling item to reconcile segment results to consolidated results of the Company.  These special items include (i) personnel and dealer-related items stemming from our efforts to match production capacity and cost structure to market demand and changing model mix, and (ii) certain infrequent significant items that we generally do not consider to be indicative of our ongoing operating activities.   This presentation reflects the fact that management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. 

Transactions among Automotive segments generally are presented on a “where-sold,” absolute-cost basis, which reflects the profit/(loss) on the sale within the segment making the ultimate sale to an external entity.  This presentation generally eliminates the effect of legal entity transfer prices within the Automotive sector for vehicles, components, and product engineering.  

Financial Services Sector

The Financial Services sector includes the following segments: 1) Ford Credit, and 2) Other Financial Services.  Ford Credit provides vehicle-related financing and leasing.  Other Financial Services includes a variety of businesses including holding companies, real estate, and the financing of some Volvo vehicles in Europe. During 2013, we sold a substantial portion of our Volvo financing business, with the remaining Volvo-related retail financing receivables classified as assets held for sale in Other assets. See Note 23 for more information.






NOTE 26.  SEGMENT INFORMATION (Continued)

Key operating data for our business segments for the years ended or at December 31 were as follows (in millions):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automotive Sector
 
Operating Segments
 
Reconciling Items
 
 

 
North
America
 
South
America
 
Europe
 
Asia
Pacific
Africa
 
Other
Automotive
 
Special
Items
 
Total
2013
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenues
$
88,907

 
$
10,844

 
$
27,882

 
$
11,736

 
$
—

 
$
—

 
$
139,369

Income/(loss) before income taxes
8,781

 
(34
)
 
(1,609
)
 
415

 
(656
)
 
(1,568
)
 
5,329

Other disclosures:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and tooling amortization
2,128

 
272

 
1,312

 
352

 
—

 
—

 
4,064

Amortization of intangibles
9

 
—

 
1

 
1

 
—

 
—

 
11

Interest expense
—

 
—

 
—

 
—

 
829

 
—

 
829

Interest income
100

 
—

 
6

 
4

 
53

 
—

 
163

Cash outflow for capital spending
3,754

 
756

 
1,277

 
779

 
—

 
—

 
6,566

Unconsolidated affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in net income
127

 
—

 
125

 
794

 
—

 
—

 
1,046

Total assets at December 31
59,038

 
7,056

 
15,264

 
8,968

 
—

 
—

 
90,326

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 

 
 

 
 

 
 

 
 

 
 

 
 

Revenues
$
79,943

 
$
10,080

 
$
26,546

 
$
9,998

 
$
—

 
$
—

 
$
126,567

Income/(loss) before income taxes
8,343

 
213

 
(1,753
)
 
(77
)
 
(470
)
 
(246
)
 
6,010

Other disclosures:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and tooling amortization
1,964

 
256

 
1,132

 
303

 
—

 
—

 
3,655

Amortization of intangibles
9

 
—

 
—

 
1

 
—

 
—

 
10

Interest expense
—

 
—

 
—

 
—

 
713

 
—

 
713

Interest income
72

 
—

 
—

 
—

 
200

 
—

 
272

Cash outflow for capital spending
3,150

 
668

 
1,112

 
529

 
—

 
—

 
5,459

Unconsolidated affiliates
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in net income
127

 
—

 
113

 
315

 
—

 
—

 
555

Total assets at December 31
51,699

 
6,819

 
20,305

 
7,635

 
—

 
—

 
86,458

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
75,022

 
$
10,976

 
$
33,758

 
$
8,412

 
$
—

 
$
—

 
$
128,168

Income/(loss) before income taxes
6,191

 
861

 
(27
)
 
(92
)
 
(601
)
 
(82
)
 
6,250

Other disclosures:
 

 
 

 
 

 
 

 
 

 
 

 
 

Depreciation and tooling amortization
1,769

 
265

 
1,225

 
274

 
—

 
—

 
3,533

Amortization of intangibles
9

 
2

 
—

 
1

 
—

 
—

 
12

Interest expense
—

 
—

 
—

 
—

 
817

 
—

 
817

Interest income
60

 
—

 
—

 
—

 
327

 
—

 
387

Cash outflow for capital spending
2,164

 
581

 
1,034

 
493

 
—

 
—

 
4,272

Unconsolidated affiliates
 

 
 

 
 

 
 

 
 

 
 

 
 

Equity in net income
179

 
—

 
61

 
239

 
—

 
—

 
479

Total assets at December 31
46,038

 
6,878

 
19,737

 
6,133

 
—

 
—

 
78,786

NOTE 26.  SEGMENT INFORMATION (Continued)
 
 
 
 
 
 
 
 
 
 
 
 

 
Financial Services Sector
 
Total Company
 
Operating Segments
 
Reconciling Item
 
 
 
 
 
 
 
Ford
Credit (a)
 
Other
Financial
Services
 
Elims
 
Total
 
Elims (b)
 
Total
2013
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
7,805

 
$
192

 
$
(449
)
 
$
7,548

 
$
—

 
$
146,917

Income/(loss) before income taxes
1,756

 
(84
)
 
—

 
1,672

 
—

 
7,001

Other disclosures:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and tooling amortization
2,422

 
18

 
—

 
2,440

 
—

 
6,504

Amortization of intangibles
—

 
—

 
—

 
—

 
—

 
11

Interest expense
2,730

 
130

 
—

 
2,860

 
—

 
3,689

Interest income (c)
50

 
—

 
—

 
50

 
—

 
213

Cash outflow for capital spending
16

 
15

 
—

 
31

 
—

 
6,597

Unconsolidated affiliates
 
 
 
 
 
 
 
 
 
 
 
Equity in net income
23

 
—

 
—

 
23

 
—

 
1,069

Total assets at December 31
115,608

 
5,679

 
(6,230
)
 
115,057

 
(3,357
)
 
202,026

 
 
 
 
 
 
 
 
 
 
 
 
2012
 

 
 

 
 

 
 

 
 

 
 

Revenues
$
7,189

 
$
267

 
$
(464
)
 
$
6,992

 
$
—

 
$
133,559

Income/(loss) before income taxes
1,697

 
13

 
—

 
1,710

 
—

 
7,720

Other disclosures:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and tooling amortization
1,806

 
25

 
—

 
1,831

 
—

 
5,486

Amortization of intangibles
—

 
—

 
—

 
—

 
—

 
10

Interest expense
3,027

 
88

 
—

 
3,115

 
—

 
3,828

Interest income (c)
69

 
1

 
—

 
70

 
—

 
342

Cash outflow for capital spending
18

 
11

 
—

 
29

 
—

 
5,488

Unconsolidated affiliates
 
 
 
 
 
 
 
 
 
 
 
Equity in net income
33

 
—

 
—

 
33

 
—

 
588

Total assets at December 31
104,596

 
7,698

 
(7,282
)
 
105,012

 
(2,064
)
 
189,406

 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
7,662

 
$
337

 
$
(562
)
 
$
7,437

 
$
—

 
$
135,605

Income/(loss) before income taxes
2,404

 
27

 
—

 
2,431

 
—

 
8,681

Other disclosures:
 

 
 

 
 

 
 

 
 

 
 

Depreciation and tooling amortization
1,154

 
30

 
—

 
1,184

 
—

 
4,717

Amortization of intangibles
—

 
—

 
—

 
—

 
—

 
12

Interest expense
3,507

 
107

 
—

 
3,614

 
—

 
4,431

Interest income (c)
83

 
1

 
—

 
84

 
—

 
471

Cash outflow for capital spending
15

 
6

 
—

 
21

 
—

 
4,293

Unconsolidated affiliates
 

 
 

 
 

 
 

 
 

 
 

Equity in net income
21

 
—

 
—

 
21

 
—

 
500

Total assets at December 31
99,280

 
8,634

 
(7,302
)
 
100,612

 
(2,012
)
 
177,386

__________
(a)
Prior-year revenues, depreciation, and total assets were reclassified to conform to current-year presentation.
(b)
Includes intersector transactions occurring in the ordinary course of business and deferred tax netting.
(c)
Interest income reflected on this line for Financial Services sector is non-financing related. Interest income in the normal course of business for Financial Services sector is reported in Financial Services revenues.

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