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Notes to the Financial Statements
172 Ford Motor Company | 2011 Annual Report
NOTE 27. 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
In 2010, we changed the reporting structure of our Automotive sector to separately disclose the following four
segments: 1) Ford North America, 2) Ford South America, 3) Ford Europe, and 4) Ford Asia Pacific Africa. Included in
each segment, described below, are the associated costs to develop, manufacture, distribute, and service vehicles and
parts. Automotive sector prior period information includes Volvo.
Ford North America segment includes primarily the sale of Ford, Lincoln, and Mercury brand vehicles and related
service parts and accessories in North America (the United States, Canada and Mexico).
Ford South America segment includes primarily the sale of Ford-brand vehicles and related service parts and
accessories in South America.
Ford Europe segment, including all parts of Turkey and Russia, includes primarily the sale of Ford-brand vehicles and
related service parts and accessories in Europe.
Ford Asia Pacific Africa segment includes primarily the sale of Ford-brand vehicles and related service parts and
accessories in the Asia Pacific region and South Africa.
Revenue from certain vehicles (specifically, Ford brand vehicles produced and distributed by our unconsolidated
affiliates, including our unconsolidated joint venture FordSollers that began operations in the fourth quarter of 2011, as
well as by our Chinese unconsolidated affiliate Jiangling Motors Corporation (JMC) brand vehicles) is not included in our
revenue.
Prior to the sale of the brand, the Volvo segment included primarily the sale of Volvo-brand vehicles and related
service parts throughout the world (including in North America, South America, Europe, Asia Pacific, and Africa), which
were reported as operating results through 2009. In August 2010 we completed the sale of Volvo. Results for Volvo are
reported as special items in 2010 and as segment operating results in 2009.
The Other Automotive component of the Automotive sector consists primarily of centrally-managed net interest
expense and related fair market value adjustments.
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. Beginning with the first quarter of 2008 and until their sale in August 2010, income/(loss) before
income taxes on vehicle component sales by Volvo to other segments and by the Ford-brand segments to Volvo were
reflected in the results for the segment making the vehicle component sale.