Ford 2014 Annual Report Download - page 160

FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 18. OTHER INCOME/(LOSS)
Automotive Sector
The amounts included in Automotive interest income and other income/(loss), net for the years ended December 31
were as follows (in millions):
2014 2013 2012
Investment-related interest income $ 193 $163 $272
Interest income/(expense) on income taxes 109 — —
Realized and unrealized gains/(losses) on cash equivalents and marketable securities (9) 190 85
Gains/(Losses) on changes in investments in affiliates (798)(113)594
Gains/(Losses) on extinguishment of debt (132)(18) —
Royalty income 559 577 414
Other 154 175 234
Total $ 76 $ 974 $ 1,599
Financial Services Sector
The amounts included in Financial Services other income/(loss), net for the years ended December 31 were as
follows (in millions):
2014 2013 2012
Investment-related interest income $ 51 $ 50 $ 70
Interest income/(expense) on income taxes (13) — —
Insurance premiums earned 125 119 105
Other 185 179 190
Total $ 348 $348 $365
NOTE 19. SHARE-BASED COMPENSATION
At December 31, 2014, a variety of share-based compensation grants and awards were outstanding for employees
(including officers). All share-based compensation plans are approved by our shareholders.
We have share-based compensation outstanding under three Long-Term Incentive Plans (“LTIP”): the 1998 LTIP,
the 2008 LTIP, and the 2014 Stock Plan for Non-Employee Directors (“2014 Plan”). No further grants may be made under
the 1998 LTIP. All outstanding share-based compensation under the 1998 LTIP continues to be governed by the terms
and conditions of the existing agreements for those grants. Grants may continue to be made under the 2008 LTIP through
April 2018. Under the 2008 LTIP, the number of shares of Common Stock that may be granted as share-based
compensation in any year is limited to 2% of our issued and outstanding Common Stock as of December 31 of the prior
calendar year. Any unused portion is available for later years. The limit may be increased up to 3% in any year, with a
corresponding reduction in shares available for grants in future years. At December 31, 2014, the number of unused
shares carried forward was 279 million shares. Grants may continue to be made under the 2014 Plan through
December 2023. Grants under the 2014 Plan are typically made on the third Thursday in May of each year. Pursuant to
the 2014 Plan, the number of shares of Common Stock that may be granted is 10 million shares.
We primarily issue two types of share-based compensation awards: restricted stock units (“RSUs”) and stock options.
We grant time-based and performance-based RSUs to our employees. RSUs provide the recipients with the right to
shares of Common Stock after a restriction period. We measure the fair value using the closing price of our Common
Stock on grant date.
Time-based RSUs generally have a graded vesting feature whereby one-third of each grant of RSUs vests after the
first anniversary of the grant date, one-third after the second anniversary, and one-third after the third anniversary.
Performance-based RSUs have a performance period (usually one year) followed by a restriction period (usually
two years).
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