Ford 2007 Annual Report Download - page 106

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Notes to the Financial Statements
104 Ford Motor Company | 2007 Annual Report
NOTE 23. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Balance Sheet Effect of Derivative Instruments
The fair value of derivatives reflects the price that a third party would be willing to pay or receive in arm's length
transactions and includes mark-to-market adjustments to reflect the effects of changes in the related index. The following
tables summarize the estimated fair value of our derivative financial instruments at December 31 (in millions):
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Accumulated Other Comprehensive Income/(Loss) Activity
The following table summarizes activity in Accumulated other comprehensive income/(loss) excluding foreign currency
translation adjustments on net investment hedges for both the Automotive and Financial Services sectors during the years
ended December 31 (in millions):
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We expect to reclassify existing net gains of $352 million from Accumulated other comprehensive income/(loss) to Net
income/(loss) during the next twelve months as the underlying exposures are realized.
NOTE 24. RETIREMENT BENEFITS
Employee Retirement and Savings Plans
We have two principal qualified defined benefit retirement plans in the United States. The Ford-UAW Retirement Plan
covers hourly employees represented by the UAW, and the General Retirement Plan covers substantially all other Ford
employees in the United States hired on or before December 31, 2003. The hourly plan provides noncontributory benefits
related to employee service. The salaried plan provides similar noncontributory benefits and contributory benefits related
to pay and service. Other U.S. and non-U.S. subsidiaries have separate plans that generally provide similar types of
benefits for their employees. We established, effective January 1, 2004, a defined contribution plan generally covering
new salaried U.S. employees hired on or after that date. Ford-UAW Retirement Plan expense accruals for UAW-
represented Ford employees previously assigned to Visteon ("Visteon Hourly Employees") were charged to Visteon.
Pursuant to definitive agreements with Visteon signed on September 12, 2005, these charges were discontinued effective
October 1, 2005.
For our plans that provide benefits based on salary, we project employee future salary growth for such salary-related
benefits. Certain of our defined benefit pension plans provide benefits that are not based on salary (e.g., U.S. Ford-UAW
Retirement Plan, noncontributory portion of the U.S. General Retirement Plan, and Canada Ford-UAW Retirement Plan).
The salary growth assumption is not applicable to these benefits.