Ford 2003 Annual Report Download - page 94

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92 FORD MOTOR COMPANY
NOTES TO FINANCIAL STATEMENTS
NOTE 17. OPERATING CASH FLOWS BEFORE SECURITIES TRADING
The reconciliation of Net income/(loss) from continuing operations to cash flows from operating activities before securities trading
is as follows (in millions):
2003 2002 2001
Financial Financial Financial
Automotive Services Automotive Services Automotive Services
Net income/(loss) from continuing operations $ (1,091) $ 2,012 $ (985) $ 1,268 $ (6,152) $ 805
Depreciation and special tools amortization 5,472 8,791 4,896 10,181 4,997 10,139
Impairment charges (depreciation and amortization) --- - 3,828 -
Amortization of goodwill and intangibles 24 10 21 18 296 31
Net losses/(earnings) from equity
investments in excess of dividends remitted (2) - 134 13 845 (5)
Provision for credit/insurance losses - 2,357 - 3,275 - 3,661
Foreign currency adjustments 160 - 51 - (201) -
Loss on sale of business --519 - - -
Stock option expense 154 19 -- --
Provision for deferred income taxes 785 1,274 (1,378) 595 (2,241) 538
Decrease/(increase) in accounts
receivable and other current assets (1,445) 1,353 2,568 (2,533) 1,225 (837)
Decrease/(increase) in inventory (505) - (650) - 1,125 -
Increase/(decrease) in accounts payable
and accrued and other liabilities (1,786) 1,132 3,928 2,678 4,707 (974)
Other (430) 104 377 (234) (989) (281)
Cash flows from operating activities
before securities trading $ 1,336 $ 17,052 $ 9,481 $ 15,261 $ 7,440 $ 13,077
Automotive sector cash equivalents at December 31, 2003 and 2002 were $4.0 billion and $4.4 billion, respectively;
Financial Services sector cash equivalents at December 31, 2003 and 2002 were $14.2 billion and $5.3 billion, respectively.
Cash paid/(received) for interest and income taxes was as follows (in millions):
2003 2002 2001
Interest $ 7,553 $ 7,748 $ 9,946
Income taxes (1,046) (1,883) 929
NOTE 18. ACQUISITIONS, DISPOSITIONS, RESTRUCTURINGS AND OTHER ACTIONS
2003
European Charges — Reflecting the ongoing restructuring of the Ford Europe business unit of our International Automotive
segment, we recorded pre-tax charges in Automotive cost of sales totaling $513 million in the third and fourth quarters of 2003.
The charges included costs associated with employee separations. These actions and the approximate reduction in personnel
are as follows:
Number of Employees
Planned shift pattern changes at our Genk (Belgium)
vehicle assembly plant 2,900
Manufacturing, engineering and staff efficiency actions
in Cologne (Germany) and at various locations
in the UK (1,170 salaried and 730 hourly) 1,900
FIN73_104 3/21/04 1:07 AM Page 92