Ford 2013 Annual Report Download - page 23

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Ford Motor Company | 2013 Annual Report 21
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Total costs and expenses for our Automotive sector for 2013 and 2012 was $135.2 billion and $122 billion,
respectively, a difference of $13.2 billion. An explanation of the change is shown below (in billions):
2013
Better/(Worse)
2012
Explanation of change:
Volume and mix, exchange, and other $ (8.6)
Contribution costs (a)
Commodity costs (incl. hedging) 0.2
Material costs excluding commodity costs (0.6)
Warranty/Freight (0.4)
Other costs (a)
Structural costs (2.9)
Other (0.3)
Special items (0.6)
Total $ (13.2)
_________
(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 2013.
In 2013, Automotive pre-tax profit was the highest in more than a decade, with record profits in North America and
Asia Pacific Africa, an about breakeven result in South America, and a lower loss in Europe than last year. Other
Automotive reflects net interest expense, offset partially by a favorable fair market value adjustment of our investment in
Mazda.
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