Ford 2014 Annual Report Download - page 48

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Total costs and expenses for our Automotive sector for 2014 and 2013 was $133.8 billion and $135.2 billion,
respectively, a difference of $1.4 billion. An explanation of the change is shown below (in billions):
2014
Lower/(Higher)
2013
Explanation of change:
Volume and mix, exchange, and other $ 2.9
Contribution costs (a)
Material/Freight 0.8
Warranty (1.3)
Other costs (a)
Structural costs (1.7)
Other (0.1)
Special items 0.8
Total $ 1.4
_________
(a) Our key cost change elements are measured primarily at present-year exchange; in addition, costs that vary directly with volume, such as material,
freight and warranty costs, are measured at present-year volume and mix. Excludes special items.
Results by Automotive Segment. Details by segment of Income before income taxes are shown below for 2014.
In 2014, Automotive pre-tax profit was driven by profits in North America and record results in Asia Pacific. Middle
East & Africa was about breakeven, while Europe and South America incurred large losses as expected. Other
Automotive primarily reflects net interest expense.
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