Ford 2014 Annual Report Download - page 118

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FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. PRESENTATION (Continued)
Reconciliations between Consolidated and Sector Financial Statements
Sector to Consolidated Deferred Tax Assets and Liabilities. The difference between the total assets and total liabilities
as presented on our sector balance sheet and consolidated balance sheet is the result of netting deferred income tax
assets and liabilities. The reconciliation between the totals for the sector and consolidated balance sheets at
December 31 was as follows (in millions):
2014 2013
Sector balance sheet presentation of deferred income tax assets
Automotive sector current deferred income tax assets $ 2,039 $ 1,574
Automotive sector non-current deferred income tax assets 13,331 13,436
Financial Services sector deferred income tax assets (a) 185 184
Total 15,555 15,194
Reclassification for netting of deferred income taxes (1,916)(1,726)
Consolidated balance sheet presentation of deferred income tax assets $ 13,639 $ 13,468
Sector balance sheet presentation of deferred income tax liabilities
Automotive sector current deferred income tax liabilities $ 270 $267
Automotive sector non-current deferred income tax liabilities 367 430
Financial Services sector deferred income tax liabilities 1,849 1,627
Total 2,486 2,324
Reclassification for netting of deferred income taxes (1,916)(1,726)
Consolidated balance sheet presentation of deferred income tax liabilities $ 570 $598
__________
(a) Financial Services deferred income tax assets are included in Financial Services Other assets on our sector balance sheet.
Certain Transactions Between Automotive and Financial Services Sectors
Intersector transactions occur in the ordinary course of business. Additional detail regarding certain transactions and
the effect on each sector’s balance sheet at December 31 was as follows (in billions):
2014 2013
Automotive
Financial
Services Automotive
Financial
Services
Finance receivables, net (a) $ 5.0 $ 3.3
Unearned interest supplements and residual support (b) (3.9) (3.1)
Wholesale receivables/Other (c) 0.8 0.8
Net investment in operating leases (d) 0.6 0.6
Intersector receivables/(payables) (e) $ — —$ (0.2) 0.2
__________
(a) Automotive sector receivables (generated primarily from vehicle and parts sales to third parties) sold to Ford Credit. These receivables are
classified as Other receivables, net on our consolidated balance sheet and Finance receivables, net on our sector balance sheet.
(b) We pay amounts to Ford Credit at the point of retail financing or lease origination that represent interest supplements and residual support.
(c) Primarily wholesale receivables with entities that are consolidated subsidiaries of Ford.
(d) Sale-leaseback agreement between Automotive and Financial Services sectors relating to vehicles that we lease to our employees.
(e) Amounts owed to the Financial Services sector by Automotive sector, or vice versa.
FS-12