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Management’s Discussion and Analysis of Financial Condition and Results of Operations
30 Ford Motor Company | 2010 Annual Report
RESULTS OF OPERATIONS
On January 1, 2010, we adopted the new accounting standard regarding consolidation of VIEs. We have applied the
standard retrospectively to periods covered in this Report, and present prior-year financial statement data on a basis that
is revised for the application of this standard.
FULL-YEAR 2010 RESULTS OF OPERATIONS
Our worldwide net income attributable to Ford Motor Company was $6.6 billion or $1.66 per share of Common and
Class B Stock in 2010, an improvement of $3.9 billion from net income attributable to Ford Motor Company of $2.7 billion
or $0.86 per share of Common and Class B Stock in 2009.
Results by business sector are shown below (in millions):
2010
20102010
2010
2009
20092009
2009
20
2020
2008
0808
08 (a)
(a) (a)
(a)
Income/(Loss) before income taxes
Income/(Loss) before income taxesIncome/(Loss) before income taxes
Income/(Loss) before income taxes
Automotive sector................................................................................................
................................
$ 4,146 $ 785 $ (12,314)
Financial Services sector................................................................
................................
3,003 1,814 (2,581)
Total Company ................................................................................................
................................
7,149 2,599 (14,895)
Provision for/(Benefit from) income taxes (b) ................................
................................
592 (113) (62)
Income/(Loss) from continuing operations
Income/(Loss) from continuing operationsIncome/(Loss) from continuing operations
Income/(Loss) from continuing operations ................................................................
................................
6,557 2,712 (14,833)
Income/(Loss) from discontinued operations................................
................................
— 5 9
Net income/(loss)
Net income/(loss)Net income/(loss)
Net income/(loss)................................................................................................
................................
6,557 2,717 (14,824)
Less: Income/(Loss) attributable to noncontrolling interests (c)................................
................................
(4) — (58)
Net income/(loss) attributable to Ford Motor Company
Net income/(loss) attributable to Ford Motor CompanyNet income/(loss) attributable to Ford Motor Company
Net income/(loss) attributable to Ford Motor Company (d)................................
................................
$ 6,561 $ 2,717 $ (14,766)
__________
(a) Adjusted for the effect of the change in the accounting standards for convertible debt instruments that, upon conversion, may be settled in cash;
see Note 1 of the Notes to the Financial Statements for additional detail.
(b) See Note 23 of the Notes to the Financial Statements for disclosure regarding 2010 effective tax rate.
(c) Formerly labeled "Minority interests in net income/(loss)," reflects presentation under standard on accounting for noncontrolling interests, which
was effective January 1, 2009.
(d) Formerly labeled "Net income/(loss)," reflects presentation under the standard on accounting for noncontrolling interests, effective
January 1, 2009.
Income/(Loss) before income taxes includes certain items ("special items") that we have grouped into "Personnel and
Dealer-Related Items" and "Other Items" to provide useful information to investors about the nature of the special items.
The first category includes items related to our efforts to match production capacity and cost structure to market demand
and changing model mix and therefore helps investors track amounts related to those activities. The second category
includes items that we do not generally consider to be indicative of our ongoing operating activities, and therefore allows
investors analyzing our pre-tax results to identify certain infrequent significant items that they may wish to exclude when
considering the trend of ongoing operating results.
As detailed in Note 28 of the Notes to the Financial Statements, we allocate all Automotive sector and Financial
Services sector special items to a separate reconciling item, as opposed to allocating them among the operating
segments and Other Automotive, reflecting the fact that management excludes these items from its review of operating
segment results for purposes of measuring segment profitability and allocating resources among the segments.