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Notes to the Financial Statements
112 Ford Motor Company | 2010 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 31% and 26% of inventories at December 31, 2010
and 2009, respectively. Cost of other inventories is determined on a first-in, first-out ("FIFO") basis.
Inventories at December 31 were as follows (in millions):
2010
20102010
2010
2009
20092009
2009
Raw materials, work-in-process and supplies ................................................................
................................
$ 2,812 $ 2,456
Finished products................................................................................................................................
.........................
3,970 3,383
Total inventories under FIFO................................................................................................
................................
6,782 5,839
Less: LIFO adjustment................................................................................................
................................
(865) (798)
Total inventories................................................................................................................................
.........................
$ 5,917 $ 5,041
At December 31, 2010 and 2009, LIFO inventory quantities were reduced, resulting in a liquidation of inventory
quantities carried at lower costs prevailing in prior years as compared with the cost of purchases, the effect of which
decreased Automotive cost of sales by about $4 million and $33 million, respectively.
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 or of which we
are not the primary beneficiary, 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, 2010, and balances of equity method
investments at December 31, 2010 and 2009 (in millions, except percentages):
Investment Balance
Investment BalanceInvestment Balance
Investment Balance
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
Ownership
Ownership Ownership
Ownership
Per
PerPer
Percentage
centagecentage
centage
2
2220
00010
1010
10
2009
20092009
2009
Ford Otomotiv Sanayi Anonim Sirketi ("Ford Otosan") ................................
................................
41.0% $ 414 $ 395
AutoAlliance International, Inc ("AAI") ................................................................
................................
50.0 293 229
AutoAlliance (Thailand) Co., Ltd ("AAT").................................................................
................................
50.0 338 301
Changan Ford Mazda Automobile Corporation, Ltd ................................
................................
35.0 313 247
Jiangling Motors Corporation, Ltd ................................................................
................................
30.0 307 238
Getrag Ford Transmissions GmbH ("GFT") ................................................................
................................
50.0 227 215
S.C. Automobile Craiova SA. ("ACSA") * ................................................................
................................
100.0 223 289
Ford Motor Company Capital Trust II ("Trust II") ................................
................................
5.0 157 155
Tenedora Nemak, S.A. de C.V.................................................................
................................
6.8 67 64
Changan Ford Mazda Engine Company, Ltd. ................................
................................
25.0 32 19
DealerDirect LLC ................................................................................................
................................
97.7 20 12
OEConnection LLC ................................................................................................
................................
33.0 13 10
Ford Performance Vehicles Pty Ltd.................................................................
................................
49.0 9 9
Percepta, LLC................................................................................................
................................
45.0 6 6
Blue Diamond Parts, LLC ................................................................
................................
25.0 6 5
Blue Diamond Truck, S. de R.L. de C.V.................................................................
................................
25.0 6 45
Automotive Fuel Cell Cooperation Corporation ("AFCC")................................
................................
30.0 4 3
Other................................................................................................
................................
Various 6 4
Total Automotive sector ................................................................
................................
2,441 2,246
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
Forso Nordic AB................................................................................................
................................
50.0 71 67
FFS Finance South Africa (Pty) Limited ................................................................
................................
50.0 39 32
RouteOne LLC ................................................................................................
................................
30.0 14 18
Other................................................................................................
................................
Various 4 4
Total Financial Services sector ................................................................
................................
128 121
Total Company ................................................................................................
................................
$ 2,569 $ 2,367
__________
* See Note 24 for discussion of this entity.