Annual Report 2011 - Ford Motor Company

Management’s Discussion and Analysis of Financial Condition and Results of Operations
FINANCIAL SERVICES SECTOR
2011 Compared with 2010
As shown in the total Company discussion above, we present our Financial Services sector results in two segments,
Ford Credit and Other Financial Services. Ford Credit, in turn, has two segments, North America and International.
Ford Credit
The chart below details the change in 2011 pre-tax operating profit compared with 2010 by causal factor.
The decline in Ford Credit's pre-tax operating profit reflects fewer leases being terminated and the related vehicles
sold at a gain, and lower credit loss reserve reductions.
Results of Ford Credit's operations and unallocated risk management for the years ended December 31 are shown
below (in millions):
2011
2010
2011
Over/(Under)
2010
Income/(Loss) before income taxes
North America segment
$ 2,159 $ 2,785 $ (626)
International segment
371
354
17
Unallocated risk management (a)
(126)
(85)
(41)
Income/(Loss) before income taxes
__________
$ 2,404 $ 3,054 $ (650)
(a) Consists of gains and losses related to market valuation adjustments to derivatives primarily related to movements in interest rates.
The full-year decrease in Ford Credit's North America segment pre-tax earnings is more than explained by fewer
leases being terminated and the related vehicles sold at a gain, and lower credit loss reserve reductions. The full-year
increase in its International segment pre-tax results is more than explained by foreign currency translation adjustments
related to the discontinuation of financing in Australia.
50 Ford Motor Company | 2011 Annual Report