Ford 2002 Annual Report Download - page 75

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71
NOTES TO FINANCIAL STATEMENTS
The amortized cost and fair value of investments in available-for-sale and held-to-maturity securities by contractual maturity
for Automotive and Financial Service sectors were as follows (in millions):
2002 2001
Available-for-sale Held-to-maturity Available-for-sale Held-to-maturity
Contractual Amortized Fair Amortized Fair Amortized Fair Amortized Fair
Maturity Cost Value Cost Value Cost Value Cost Value
1 year $ 297 $ 300 $ - $ - $22$22 $-$-
2–5 years 1,160 1,177 3 3 1,284 1,302 1 1
6–10 years 266 275 1 1 289 292 3 3
11 years and later 208 218 2 2 221 223 2 2
Mortgage-backed
securities 216 224 - - 207 209 - -
Equity securities 46 59 - - 29 52 - -
Total $ 2,193 $ 2,253 $ 6 $ 6 $ 2,052 $ 2,100 $ 6 $ 6
NOTE 5. INVENTORIES — AUTOMOTIVE SECTOR
Inventories at December 31 were as follows (in millions):
2002 2001
Raw materials, work-in-process and supplies $ 3,174 $ 2,430
Finished products 4,763 4,602
Total inventories at FIFO 7,937 7,032
Less LIFO adjustment (957) (905)
Total inventories $ 6,980 $ 6,127
Inventories are stated at lower of cost or market. About one-third of inventories were determined under the last-in,
first-out-method.
NOTE 6. NET PROPERTY AND RELATED EXPENSES — AUTOMOTIVE SECTOR
Net property at December 31 was as follows (in millions):
Average
Life (Years) 2002 2001
Land - $ 598 $ 577
Buildings and land improvements 30 10,337 9,913
Machinery, equipment and other 14 39,373 38,625
Construction in progress - 2,688 2,598
Total land, plant and equipment 52,996 51,713
Accumulated depreciation (26,571) (27,489)
Net land, plant and equipment 26,425 24,224
Special tools, net of amortization 5 9,939 8,798
Net property $ 36,364 $ 33,022
Property-related expenses were as follows (in millions):
2002 2001 2000
Depreciation $ 2,436 $ 5,289 $ 3,502
Amortization of special tools 2,461 3,265 2,451
Total $ 4,897 $ 8,554* $ 5,953*
Maintenance and rearrangement $ 1,962 $ 2,035 $ 2,146
* Includes impairment charges of $3,555 million and $866 million in 2001 and 2000, respectively (see Note 19).