Redeemable Noncontrolling Interest

REDEEMABLE NONCONTROLLING INTEREST

AutoAlliance International, Inc. (“AAI”) was a 50/50 joint venture between Ford and Mazda Motor Corporation (“Mazda”) that owned an automobile assembly plant in Flat Rock, Michigan. On September 1, 2012, we granted to Mazda a put option to sell and received from Mazda a call option to purchase the 50% equity interest in AAI that was held by Mazda (“the Option”). The Option was exercisable at a price of $339 million and was recorded as a redeemable noncontrolling interest in the mezzanine section of our balance sheet.

In January 2015, Mazda exercised its put option. Ford purchased Mazda's 50% equity interest at the exercise price plus accrued interest and dissolved AAI.

The change in our carrying value of the redeemable noncontrolling interest for the years ended December 31 was as follows (in millions):



	2014			2013
Beginning balance	$	331		$	322
Accretion to the redemption value of noncontrolling interest (a)	14			9
Payments (b)	(3		)	—
Ending balance	$	342		$	331

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(a)	For the years ended December 31, 2014 and 2013, respectively, $10 million and $9 million were recognized in Interest expense and $4 million and $0 were recognized in Income/(Loss) attributable to noncontrolling interests.


(b)	Represents a return of Mazda’s investment in AAI that we are contractually obligated to pay as long as Mazda retains its ownership in AAI.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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