Ford 2012 Annual Report Download - page 105

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Ford Motor Company | 2012 Annual Report 103
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13. NET PROPERTY AND LEASE COMMITMENTS (Continued)
The liability for our conditional asset retirement obligations which are recorded in Accrued liabilities and deferred
revenue was as follows (in millions):
December 31,
2012
December 31,
2011
Beginning balance $ 266 $331
Liabilities settled (8) (6)
Revisions to estimates 9 (59)
Ending balance $ 267 $266
Lease Commitments
We lease land, buildings, and equipment under agreements that expire over various contractual periods. Minimum
non-cancelable operating lease commitments at December 31, 2012 were as follows (in millions):
2013 2014 2015 2016 2017 Thereafter Total
Automotive sector $ 217 $ 189 $144 $ 98 $ 74 $ 172 $894
Financial Services sector 52 41 34 31 22 24 204
Total Company $ 269 $ 230 $178 $129 $ 96 $ 196 $ 1,098
Operating lease expense for the years ended December 31 was as follows (in millions):
2012 2011 2010
Automotive sector $ 404 $416 $475
Financial Services sector 106 124 136
Total Company $ 510 $540 $611
NOTE 14. 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 were as follows (in millions):
December 31, 2012 December 31, 2011
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Automotive Sector
License and advertising agreements $ 118 $ (54) $ 64 $ 118 $(47) $ 71
Land rights 23 (8) 15 23 (8) 15
Patents 27 (20) 7 26 (17)9
Other 11 (10) 1 27 (22)5
Total Automotive sector $ 179 $ (92) $ 87 $ 194 $(94) $ 100
Amortization periods primarily range from 5 years to 25 years for our license and advertising agreements, from
40 years to 50 years for our land rights, and primarily from 7 years to 17 years for our patents. Our other intangibles
(primarily customer contracts and technology) have various amortization periods.
Pre-tax amortization expense for the periods ending December 31 was as follows (in millions):
2012 2011 2010
Pre-tax amortization expense $ 10 $ 12 $ 97
Amortization for current intangible assets is forecasted to be approximately $10 million in 2013 and each year
thereafter.
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