Ford 2014 Annual Report Download - page 133

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FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 8. 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 28% and 20% of total inventories at
December 31, 2014 and 2013, respectively. Cost of other inventories is determined by costing methods that approximate
a first-in, first-out (“FIFO”) basis.
Inventories at December 31 were as follows (in millions):
2014 2013
Raw materials, work-in-process, and supplies $ 3,822 $ 3,628
Finished products 5,022 5,081
Total inventories under FIFO 8,844 8,709
LIFO adjustment (978)(1,001)
Total inventories $ 7,866 $ 7,708
NOTE 9. 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, but over
whose operating and financial policies we are able to exercise significant influence.
Ownership Percentages and Investment Balances
Our ownership percentages and carrying value of our equity method investments at December 31 were as follows
(in millions, except percentages):
Ownership
Percentage Investment Balance
Automotive Sector 2014 2014 2013
Changan Ford Automobile Corporation, Ltd (“CAF”) (Note 22) 50.0%$ 1,301 $ 1,429
Jiangling Motors Corporation, Ltd (“JMC”) (Note 22) 32.0 604 535
AutoAlliance (Thailand) Co., Ltd. 50.0 428 395
Ford Sollers Netherlands B.V. (Note 22) 50.0 376
Ford Otomotiv Sanayi Anonim Sirketi (“Ford Otosan”) 41.0 386 336
Getrag Ford Transmissions GmbH (“GFT”) 50.0 232 249
Tenedora Nemak, S.A. de C.V. 6.8 86 79
Changan Ford Mazda Engine Company, Ltd. 25.0 69 59
OEConnection LLC 50.0 35 28
DealerDirect LLC 97.7 26 25
Percepta, LLC 45.0 9 9
Automotive Fuel Cell Cooperation Corporation 49.9 9 8
Blue Diamond Truck, S. de R.L. de C.V. 25.0 8 8
Thirdware Solutions LTD 20.0 8 4
Other Various 15 6
Total Automotive sector 3,216 3,546
Financial Services Sector
Forso Nordic AB 50.0 67 72
FFS Finance South Africa (Pty) Limited 50.0 50 43
RouteOne LLC 30.0 20 14
CNF-Administradora de Consorcio Nacional Ltda. 33.3 4 4
Total Financial Services sector 141 133
Total Company $ 3,357 $ 3,679
We received $1.5 billion, $529 million, and $610 million of dividends from these affiliated companies for the years
ended December 31, 2014, 2013, and 2012, respectively.
FS-27