Ford 2014 Annual Report Download - page 43

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
RESULTS OF OPERATIONS
TOTAL COMPANY
Our net income attributable to Ford Motor Company was $3.2 billion or $0.80 per share of Common and Class B
Stock in 2014, a decline of $4 billion or $0.97 per share from 2013.
Total Company results are shown below:
2014 2013 2012
(Mils.) (Mils.) (Mils.)
Income
Pre-tax results (excl. special items) $ 6,282 $8,608 $ 7,884
Special items (1,940) (1,568) (246)
Pre-tax results (incl. special items) 4,342 7,040 7,638
(Provision for)/Benefit from income taxes (1,156) 135 (2,026)
Net income 3,186 7,175 5,612
Less: Income/(Loss) attributable to noncontrolling interests (1) (7) (1)
Net income attributable to Ford $3,187 $7,182 $ 5,613
Net income includes certain items (“special items”) that we have grouped into “Personnel and Dealer-Related Items”
and “Other Items” to provide useful information to investors about the nature of the special items. The first category
includes items related to our efforts to match production capacity and cost structure to market demand and changing
model mix and therefore helps investors track amounts related to those activities. The second category includes items
that we do not generally consider to be indicative of our ongoing operating activities, and therefore allows investors
analyzing our pre-tax results to identify certain infrequent significant items that they may wish to exclude when considering
the trend of ongoing operating results.
As detailed in Note 24 of the Notes to the Financial Statements, we allocate special items to a separate reconciling
item, as opposed to allocating them among the operating segments and Other Automotive, reflecting the fact that
management excludes these items from its review of operating segment results for purposes of measuring segment
profitability and allocating resources among the segments.
The following table details Automotive sector pre-tax special items in each category:
2014 2013 2012
(Mils.) (Mils.) (Mils.)
Personnel and Dealer-Related Items
Separation-related actions (a) $ (685)$ (856)$ (481)
Mercury discontinuation/Other dealer actions — — (71)
Total Personnel and Dealer-Related Items (685)(856) (552)
Other Items
Venezuela accounting change (800) — —
Ford Sollers equity impairment (329) — —
2016 Convertible Notes settlement (126) — —
U.S. pension lump-sum program — (594) (250)
FCTA -- subsidiary liquidation — (103) (4)
Ford Romania consolidation loss — (15) —
CFMA restructuring — — 625
Loss on sale of two component businesses — — (174)
AAI consolidation — — 136
Other — — (27)
Total Other Items (1,255) (712)306
Total Special Items $ (1,940) $ (1,568)$ (246)
__________
(a) For 2014 and 2013, primarily related to separation costs for personnel at the Genk and U.K. facilities.
37