Ford 2003 Annual Report Download - page 79

Operating loss carryforwards for tax purposes were $4.6 billion at December 31, 2003. A substantial portion of these losses
has an indefinite carryforward period; the remaining losses will begin to expire in 2004. Tax credits available to offset future tax
liabilities are $2.4 billion. A substantial portion has an indefinite carryforward period; the remainder begins to expire in 2005. Tax
benefits of operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and
projected future operating results, the eligible carryforward period, and other circumstances. Management believes that it is
more likely than not that the deferred tax assets will be realized.
NOTE 3. DISCONTINUED AND HELD-FOR-SALE OPERATIONS
AUTOMOTIVE SECTOR
The Automotive sector completed the sale of several of its non-core businesses initiated in 2002, including our former
automotive recycling businesses in the United States and Canada and our electric vehicle business in Norway. Associated
with these sales, we recorded after-tax net losses of $168 million in 2002 reflected in Loss on disposal of discontinued/held-
for sale operations.
During the fourth quarter of 2003, management committed to sell certain additional non-core Automotive sector businesses.
We expect to sell or unwind these businesses during 2004 and have reported these businesses as held-for-sale under SFAS
No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, for all periods shown. We have recognized an after-tax
charge of $99 million in 2003, on the anticipated loss on sale of these assets, reflected in Loss on disposal of discontinued/held-
for-sale operations. This amount represents the difference between the anticipated selling price of these assets, less costs to
sell them, and their recorded book value.
The operating results of the discontinued and held-for-sale Automotive operations are as follows (in millions):
2003 2002 2001
Sales $ 214 $ 393 $ 316
Income/(loss) before income taxes $ (16) $ (146) $ (175)
Provision for/(benefit from) income taxes (5) (51) (60)
Net income/(loss) from discontinued/held-for-sale operations $ (11) $ (95) $ (115)
At December 31, 2003 and 2002, inventories associated with discontinued and held-for-sale operations totaled $2 million
and $52 million, respectively. At December 31, 2003 and 2002, net property of the entities totaled $8 million and $40 million,
respectively.
FINANCIAL SERVICES SECTOR
The Financial Services sector completed the sale, initiated in 2002, of its all-makes vehicle fleet leasing operations in Europe,
New Zealand and Australia. We recognized an after-tax charge of $31 million in 2002, reflected in Loss on disposal of discon-
tinued/held-for-sale operations. This amount represents the difference between the selling price of these assets, less costs to
sell them, and their recorded book value.
During the fourth quarter of 2003, management committed to a plan to sell a wholly-owned subsidiary in the U.S. that offers full
service car and truck leasing. We expect to complete the sale of this business during 2004 and have reported this business as
held-for-sale under SFAS No. 144 for all periods shown. We recognized an after-tax charge of $55 million in 2003 on the antici-
pated loss on sale of these assets, reflected in Loss on disposal of discontinued/held-for-sale operations. This amount represents
the difference between the anticipated selling price of these assets, less costs to sell them, and their recorded book value.
The operating results of the discontinued and held-for-sale Financial Services operations are as follows (in millions):
2003 2002 2001
Revenues $95 $ 293 $ 254
Income/(loss) before income taxes $4 $41 $ 14
Provision for/(benefit from) income taxes 185
Net income/(loss) from discontinued/held-for-sale operations $3 $33 $ 9
2003 ANNUAL REPORT 77
NOTES TO FINANCIAL STATEMENTS
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