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126 Ford Motor Company | 2013 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 19. OTHER INCOME/(LOSS)
Automotive Sector
The following table summarizes amounts included in Automotive interest income and other income/(loss), net for the
years ended December 31 (in millions):
2013 2012 2011
Interest income $ 163 $272 $387
Realized and unrealized gains/(losses) on cash equivalents and marketable securities 190 85 (77)
Gains/(Losses) on changes in investments in affiliates (113)594 436
Gains/(Losses) on extinguishment of debt (18) (60)
Royalty income 577 414 266
Other 175 234 139
Total $ 974 $1,599 $ 1,091
Financial Services Sector
The following table summarizes amounts included in Financial Services other income/(loss), net for the years ended
December 31 (in millions):
2013 2012 2011
Interest income (investment-related) $ 50 $ 70 $ 84
Realized and unrealized gains/(losses) on cash equivalents and marketable securities 16 15
Gains/(Losses) on changes in investments in affiliates 5 (8) 51
Gains/(Losses) on extinguishment of debt (1) (14)(68)
Insurance premiums earned 119 105 100
Other 175 196 193
Total $ 348 $365 $375
NOTE 20. SHARE-BASED COMPENSATION
At December 31, 2013, a variety of share-based compensation grants and awards were outstanding for employees
(including officers). All share-based compensation plans are approved by the shareholders.
We have share-based compensation outstanding under two Long-Term Incentive Plans (“LTIP”): the 1998 LTIP and
the 2008 LTIP. No further grants may be made under the 1998 LTIP. All outstanding share-based compensation under
the 1998 LTIP continues to be governed by the terms and conditions of the existing agreements for those grants. Grants
may continue to be made under the 2008 LTIP through April 2018. Under the 2008 LTIP, the number of shares of
Common Stock that may be granted as share-based compensation in any year is limited to 2% of our issued and
outstanding Common Stock as of December 31 of the prior calendar year. Any unused portion is available for later
years. The limit may be increased up to 3% in any year, with a corresponding reduction in shares available for grants in
future years. At December 31, 2013 the number of unused shares carried forward was 217 million shares.
We primarily issue two types of share-based compensation awards: restricted stock units (“RSUs”) and stock options.
We grant time-based and performance-based RSUs to our employees. RSUs provide the recipients with the right to
shares of Common Stock after a restriction period. We measure the fair value using the closing price of our Common
Stock on grant date.
Time-based RSUs generally have a graded vesting feature whereby one-third of each grant of RSUs vests after the
first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary.
Performance-based RSUs have a performance period (usually one year) followed by a restriction period (usually
two years).