Ford 2014 Annual Report Download - page 168

FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. INCOME TAXES (Continued)
Other
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31
were as follows (in millions):
2014 2013
Beginning balance $ 1,564 $ 1,547
Increase – tax positions in prior periods 38 128
Increase – tax positions in current period 250 45
Decrease – tax positions in prior periods (172)(24)
Settlements (372)(79)
Lapse of statute of limitations (6) (54)
Foreign currency translation adjustment (16)1
Ending balance $ 1,286 $ 1,564
The amount of unrecognized tax benefits that would affect the effective tax rate if recognized were $1.2 billion at
December 31, 2014 and 2013.
Examinations by tax authorities have been completed through 2004 in Germany, 2007 in Canada and the
United Kingdom, and 2009 in the United States. Although examinations have been completed in these jurisdictions,
limited transfer pricing disputes exist for years dating back to 1996.
We recorded on our consolidated income statement $96 million, $11 million, and $9 million in tax-related net interest
income for the years ended December 31, 2014, 2013, and 2012. As of December 31, 2014 and 2013, we had recorded
a net receivable of $23 million and a net payable of $83 million, respectively, for tax-related interest.
We paid income taxes of $467 million, $538 million, and $344 million in 2014, 2013, and 2012, respectively.
NOTE 22. CHANGES IN INVESTMENTS IN AFFILIATES AND ASSETS HELD FOR SALE
We classify assets and liabilities as held for sale (“disposal group”) when management, having the authority to
approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal
group is available for immediate sale in its present condition. We also consider whether an active program to locate a
buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation
to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant
changes to the plan will be made or that the plan will be withdrawn. We classify a disposal group as a discontinued
operation when the criteria to be classified as held for sale have been met and we will not have any significant
involvement with the disposal group after the sale.
When we classify a disposal group as held for sale, we test for impairment. An impairment charge is recognized when
the carrying value of the disposal group exceeds the estimated fair value, less transaction costs. We also cease
depreciation for assets classified as held for sale.
We aggregate the assets and liabilities of all held-for-sale disposal groups on the balance sheet for the period in
which the disposal group is held for sale. To provide comparative balance sheets, we also aggregate the assets and
liabilities for significant held-for-sale disposal groups on the prior-period balance sheet.
FS-62