Ford 2013 Annual Report Download - page 29

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Ford Motor Company | 2013 Annual Report 27
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Total costs and expenses for our Automotive sector for 2012 and 2011 was $122 billion and $122.7 billion,
respectively, a difference of about $700 million. An explanation of the change is shown below (in billions):
2012
Better/(Worse)
2011
Explanation of change:
Volume and mix, exchange, and other $ 2.9
Contribution costs (a)
Commodity costs (incl. hedging) —
Material costs excluding commodity costs (0.9)
Warranty/Freight 0.8
Other costs (a)
Structural costs (1.5)
Other (0.2)
Special items (0.4)
Total $ 0.7
_________
(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 2012.
Total Automotive pre-tax profit in 2012 was more than explained by profit from North America. South America was
profitable and Asia Pacific Africa incurred a small loss, while Europe reported a substantial loss. The loss in Other
Automotive was more than explained by net interest expense.
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