Ford 2011 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2011 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

Notes to the Financial Statements
120 Ford Motor Company | 2011 Annual Report
NOTE 10. INVENTORIES
All inventories are stated at the lower of cost or market. Cost for a substantial portion of U.S. inventories is
determined on a last-in, first-out ("LIFO") basis. LIFO was used for approximately 32% of total inventories at
December 31, 2011 and 2010. Cost of other inventories is determined by costing methods that approximate a first-in,
first-out ("FIFO") basis.
Inventories at December 31 were as follows (in millions):
Raw materials, work-in-process and supplies
Finished products
Total inventories under FIFO
Less: LIFO adjustment
Total inventories
2011
$2,847
3,982
6,829
(928)
$5,901
2010
$ 2,812
3,970
6,782
(865)
$ 5,917
NOTE 11. EQUITY IN NET ASSETS OF AFFILIATED COMPANIES
We use the equity method of accounting for our investments in entities over which we do not have control, but over
whose operating and financial policies we are able to exercise significant influence.
Ownership Percentages and Investment Balances
The following table reflects our ownership percentages at December 31, 2011, and carrying value of equity method
investments at December 31, 2011 and 2010 (in millions, except percentages):
Automotive Sector
Changan Ford Mazda Automobile Corporation, Ltd
Jiangling Motors Corporation, Ltd
AutoAlliance International, Inc
Ford Otomotiv Sanayi Anonim Sirketi ("Ford Otosan")
AutoAlliance (Thailand) Co., Ltd.
FordSollers Netherlands B.V. ("FordSollers") (a)
Getrag Ford Transmissions GmbH ("GFT")
S.C. Automobile Craiova S.A. ("ACSA") (a)
Tenedora Nemak, S.A. de C.V.
Changan Ford Mazda Engine Company, Ltd.
DealerDirect LLC
OEConnection LLC
Percepta, LLC
Blue Diamond Truck, S. de R.L. de C.V.
Ford Performance Vehicles Pty Ltd.
Blue Diamond Parts, LLC
Automotive Fuel Cell Cooperation Corporation
Ford Motor Company Capital Trust II ("Trust II") (b)
Other
Total Automotive sector
Financial Services Sector
Forso Nordic AB
FFS Finance South Africa (Pty) Limited
RouteOne LLC
CNF-Administradora de Consorcio National Ltda.
Total Financial Services sector
Total Company
Ownership
Percentage
35.0%
30.0
50.0
41.0
50.0
50.0
50.0
100.0
6.8
25.0
97.7
33.3
45.0
25.0
49.0
25.0
30.0
—
Various
50.0
50.0
30.0
33.3
Investment Balance
2011
$468
373
372
369
367
361
229
92
68
33
18
13
7
7
6
4
4
—
6
2,797
71
43
15
10
139
$2,936
2010
$313
307
293
414
338
—
227
223
67
32
20
13
6
6
9
6
4
157
6
2,441
71
39
14
4
128
$ 2,569
__________
(a) See Note 23 for further discussion.
(b) See Note 18 for further discussion.
We received $316 million, $337 million, and $299 million of dividends from these affiliated companies for the years
ended December 31, 2011, 2010, and 2009, respectively.