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Property,PlantandEquipment
Property,plantandequipmentarerecognizedatcostlessaccumulateddepreciation.Depreciationisgenerallycomputedusingthestraight-linemethodover
theestimatedusefullivesoftherelatedassetsasfollows:
Machinery,equipmentandofficefurniture  3to12years
Buildingandbuildingimprovements  30years
Computerequipmentandsoftware  3years
Depreciationfortoolingiscomputedusingtheunits-of-productionmethodwherebycapitalizedcostsareamortizedoverthetotalestimatedproductivelife
oftherelatedassets.AsofDecember31,2015,theestimatedproductivelifefortoolingwas250,000vehiclesbasedonourcurrentestimatesofproduction.
Leaseholdimprovementsareamortizedonastraight-linebasisovertheshorteroftheirestimatedusefullivesorthetermoftherelatedlease.
Upontheretirementorsaleofourproperty,plantandequipment,thecostandrelatedaccumulateddepreciationareremovedfromthebalancesheetandthe
resultinggainorlossisreflectedinoperations.Maintenanceandrepairexpendituresareexpensedasincurred,whilemajorimprovementsthatincreasethe
functionality,outputorexpectedlifeoftheassetarecapitalizedanddepreciatedratablytoexpenseovertheidentifiedusefullife.Landisnotdepreciated.
Interestexpenseonoutstandingdebtiscapitalizedduringtheperiodofsignificantcapitalassetconstruction.Capitalizedinterestonconstructioninprogress
isincludedinproperty,plantandequipment,andisamortizedoverthelifeoftherelatedassets.
OperatingLeaseVehicles
Vehiclesdeliveredunderourresalevalueguaranteeprogram,vehiclesthatareleasedaspartofourleasingprogramsaswellasanyvehiclesthataresold
withasignificantbuy-backguaranteeareclassifiedasoperatingleasevehiclesastherelatedrevenuetransactionsaretreatedasoperatingleases.Operatinglease
vehiclesarerecordedatcostlessaccumulateddepreciation.Depreciationiscomputedusingthestraight-linemethodovertheexpectedoperatingleaseterm.The
totalcostofoperatingleasevehiclesrecordedintheConsolidatedBalanceSheetsasofDecember31,2015and2014was$2.0billionand$849.8million.
AccumulateddepreciationrelatedtoleasedvehiclesasofDecember31,2015and2014was$216.5millionand$83.1million.
Long-livedAssets
Weevaluateourlong-livedassets,includingintangibleassets,forindicatorsofpossibleimpairmentwheneventsorchangesincircumstancesindicatethe
carryingamountofanasset(orassetgroup)maynotberecoverable.Impairmentexistsifthecarryingamountsofsuchassetsexceedtheestimatesoffuturenet
undiscountedcashflowsexpectedtobegeneratedbysuchassets.Shouldimpairmentexist,theimpairmentlosswouldbemeasuredbasedontheexcesscarrying
valueoftheassetovertheasset’sestimatedfairvalue.Wedidnotrecordanymaterialimpairmentlossesonourlong-livedassetsin2015and2014.
ResearchandDevelopmentCosts
Researchanddevelopmentcostsareexpensedasincurred.Researchanddevelopmentexpensesconsistprimarilyofpayroll,benefitsandstock-based
compensationofthoseemployeesengagedinresearch,designanddevelopmentactivities,costsrelatedtodesigntools,licenseexpensesrelatedtointellectual
property,suppliesandservices,depreciationandotheroccupancycosts.
MarketingandPromotionCosts
Marketingandsalespromotioncostsareexpensedasincurred.DuringtheyearsendedDecember31,2015,2014and2013,advertising,promotionand
relatedmarketingexpenseswere$58.3million,$48.9millionand$9.0million.
TransportationCosts
Amountsbilledtocustomersrelatedtoshippingandhandlingareclassifiedasautomotiverevenue,andrelatedtransportationcostsareincludedincostof
automotiverevenues.
IncomeTaxes
Incometaxesarecomputedusingtheassetandliabilitymethod,underwhichdeferredtaxassetsandliabilitiesaredeterminedbasedonthedifference
betweenthefinancialstatementandtaxbasesofassetsandliabilitiesusingenactedtaxratesineffectfortheyearinwhichthedifferencesareexpectedtoaffect
taxableincome.Valuationallowancesareestablishedwhennecessarytoreducedeferredtaxassetstotheamountexpectedtoberealized.
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