Ford 2011 Annual Report Download - page 128
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Notes to the Financial Statements
126 Ford Motor Company | 2011 Annual Report
NOTE 14. NET PROPERTY AND LEASE COMMITMENTS (Continued)
The liability for our conditional asset retirement obligations which are recorded in Accrued liabilities and deferred
revenue at December 31 was as follows (in millions):
Beginning balance
Liabilities settled
Revisions to estimates
Ending balance
2011
$331
(6)
(59)
$266
2010
$347
(7)
(9)
$331
Lease Commitments
We lease land, buildings and equipment under agreements that expire over various contractual periods. Minimum
non-cancelable operating lease commitments were as follows (in millions):
Automotive sector
Financial Services sector
Total Company
2012
$ 195
54
$ 249
2013
$194
42
$236
2014
$157
28
$185
2015
$124
22
$146
2016
$105
20
$125
Thereafter
$231
41
$272
Total
$ 1,006
207
$ 1,213
Operating lease expense for the years ended December 31 was as follows (in millions):
Automotive sector
Financial Services sector
Total Company
2011
$416
124
$540
2010
$475
136
$611
2009
$624
149
$773
NOTE 15. NET INTANGIBLE ASSETS
Our intangible assets are comprised primarily of license and advertising agreements, land rights, patents, customer
contracts, and technology, and each is amortized over its determinable life.
The components of net intangible assets at December 31 were as follows (in millions):
Automotive Sector
License and advertising agreements
Land rights
Patents
Other
Total Automotive sector
2011
Gross
Carrying
Amount
$ 118
23
26
27
$ 194
Accumulated
Amortization
$(47)
(8)
(17)
(22)
$(94)
Net Carrying
Amount
$71
15
9
5
$100
2010
Gross
Carrying
Amount
$111
23
25
28
$187
Accumulated
Amortization
$(39)
(7)
(16)
(23)
$(85)
Net Carrying
Amount
$72
16
9
5
$102
Our license and advertising agreements have amortization periods primarily of 5 years to 25 years, our land rights
have amortization periods of 40 years to 50 years, our patents have amortization periods primarily of 7 years to 17 years,
and our other intangibles (primarily customer contracts and technology) have various amortization periods.
Pre-tax amortization expense for the years ending December 31 was as follows (in millions):
Pre-tax amortization expense
2011
$12
2010
$97
2009
$86
Amortization for current intangible assets is forecasted to be approximately $12 million in 2012 and each year
thereafter.