Ford 2007 Annual Report Download - page 100

Notes to the Financial Statements
98 Ford Motor Company | 2007 Annual Report
NOTE 21. CAPITAL STOCK AND AMOUNTS PER SHARE
All general voting power is vested in the holders of Common Stock and Class B Stock. Holders of our Common Stock
have 60% of the general voting power and holders of our Class B Stock are entitled to such number of votes per share as
will give them the remaining 40%. Shares of Common Stock and Class B Stock share equally in dividends, with stock
dividends payable in shares of stock of the class held. As discussed in Note 16, we are prohibited from paying dividends
(other than dividends payable in stock) under the terms of the Credit Agreement.
If liquidated, each share of Common Stock will be entitled to the first $0.50 available for distribution to holders of
Common Stock and Class B Stock, each share of Class B Stock will be entitled to the next $1.00 so available, each share
of Common Stock will be entitled to the next $0.50 so available and each share of Common and Class B Stock will be
entitled to an equal amount thereafter.
As discussed in Note 16, Convertible Notes with a principal amount of $4.95 billion are outstanding. At the option of
the holder, each Convertible Note is convertible at any time on or before December 15, 2036, into shares of our Common
Stock at a rate of 108.6957 shares per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of
$9.20 per share). Conversion of all shares of such Convertible Notes would result in the issuance of 538 million shares of
our Common Stock.
As discussed in Note 16, Trust Preferred Securities with an aggregate liquidation preference of $2.9 billion are
outstanding, following the conversion of 42,543,071 of Trust Preferred Securities on August 3, 2007. At the option of the
holder, each Preferred Security is convertible, at any time on or before January 15, 2032, into shares of our Common
Stock at a rate of 2.8249 shares for each Trust Preferred Security (equivalent to a conversion price of $17.70 per share).
Conversion of all shares of such Trust Preferred Securities would result in the issuance of 162 million shares of our
Common Stock.
As discussed in Note 16, on December 7, 2007, we issued an aggregate of 62,000,761 shares of Ford Common Stock
in exchange for about $442 million principal amount of our 6 !% Debentures due February 1, 2029 and about
$125 million principal amount of our 6 "% Debentures due October 1, 2028.
Amounts Per Share of Common and Class B Stock
The calculation of diluted income per share of Common Stock and Class B Stock takes into account the effect of
obligations, such as RSU-stock awards, stock options, and convertible notes and securities, considered to be potentially
dilutive. Basic and diluted income/(loss) per share were calculated using the following (in millions):
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