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67
Notes to the Financial Statements
67
NOTE 9. SIGNIFICANT UNCONSOLIDATED AFFILIATES (Continued)
Included in our Automotive equity in net income/(loss) of affiliated companies was income of $256 million, $148 million
and $108 million for the years ended December 31, 2006, 2005, and 2004, respectively, representing our share of
Mazda's results on a GAAP basis. There have been no events at Mazda subsequent to September 30, 2006 that would
materially affect our balance sheet or statement of income. Balance sheet information for Mazda is insignificant to our
consolidated balance sheet.
During the second half of 2005 and the first quarter of 2006, we converted to equity all of our Mazda convertible bonds.
The bonds were previously accounted for as an available-for-sale security, and at December 31, 2005 the bonds had a
fair value of $52 million.
Blue Diamond Parts, LLC. We have a 50% voting interest in Blue Diamond Parts. Blue Diamond Parts manages
sourcing, merchandising, and distribution of various replacement parts. The carrying value of our investment in Blue
Diamond Parts was $8 million and $7 million at December 31, 2006 and 2005, respectively. Dividends received from Blue
Diamond Parts were $87 million, $99 million and $41 million for the years ended December 31, 2006, 2005, and 2004,
respectively.
Summarized income statement information from Blue Diamond Parts' financial statements for the twelve months
ended December 31, 2006, 2005, and 2004 is as follows (in millions):
  
1HWVHUYLFHUHYHQXH
     
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     
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    
Included in our Automotive equity in net income/(loss) of affiliated companies was income of $89 million, $83 million
and $48 million for the years ended December 31, 2006, 2005, and 2004, respectively. Balance sheet information for
Blue Diamond Parts is insignificant to our consolidated balance sheet.
NOTE 10. NET PROPERTY AND RELATED EXPENSES
Property and equipment are stated at cost and depreciated primarily using the straight-line method over the estimated
useful life of the asset. Useful lives range from 3 years to 36 years. The estimated useful lives generally are 14.5 years
for machinery and equipment and 30 years for buildings and land improvements. Maintenance, repairs, and
rearrangement costs are expensed as incurred.
Net property at December 31 was as follows (in millions):
  
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