Ford 2007 Annual Report Download - page 99

Notes to the Financial Statements
Ford Motor Company | 2007 Annual Report 97
NOTE 20. DISCONTINUED OPERATIONS, HELD-FOR-SALE OPERATIONS, OTHER DISPOSITIONS, AND
ACQUISITIONS (Continued)
In addition, on January 23, 2008, ACH entered into a definitive agreement for the sale of the driveshaft assets at the
Monroe plant to Neapco Drivelines, LLC, following the successful negotiation by the buyer of labor terms with the UAW.
Land Rover. In June 2000, we purchased the Land Rover sport utility vehicle business from the BMW Group. As part
of the acquisition, we agreed to pay two-thirds of the purchase price at closing with the remainder being paid in 2005.
During 2005, we made the final payment of approximately $1.3 billion.
Financial Services Sector
Discontinued Operations
Triad Financial Corporation ("Triad"). During the second quarter of 2005, we completed the sale of Triad. Triad
specialized in automobile retail installment sales contracts with borrowers who generally would not be expected to qualify,
based on their credit worthiness, for traditional financing sources such as those provided by commercial banks or
automobile manufacturers' affiliated finance companies primarily through non-Ford dealerships. In 2005, Ford Credit
recognized a $4 million after-tax gain on disposal of discontinued operations. During the fourth quarter of 2007, Ford
Credit received additional proceeds primarily based on better-than-anticipated securitized portfolio performance, pursuant
to a contractual agreement entered into at the closing of the sale, and recognized in Financial Services revenues an
additional $6 million after-tax gain on disposal of discontinued operations.
The results of all discontinued Financial Services sector operations are as follows (in millions):
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At December 31, 2007 and 2006, there were no significant assets or liabilities remaining on our balance sheet related
to discontinued operations.
Held-for-Sale Operations
Hertz. In 2005, we sold our 100% ownership interest in Hertz as it is not core to our Automotive business. As part of
the transaction, we provided cash-collateralized letters of credit in an aggregate amount of $200 million to support the
asset-backed portion of the buyer's financing for the transaction. These letters of credit will expire no later than
December 21, 2011. As a result of the sale, we recognized in Gain on sale of Hertz, a pre-tax gain of $1.1 billion,
inclusive of $27 million of charges to record the estimated fair value of the letters of credit. For further discussion of these
letters of credit, see Note 28.
At December 31, 2007 and 2006, there were no assets or liabilities on our balance sheet related to held-for-sale
operations.
Other Dispositions
AB Volvofinans ("Volvofinans"). In 2007, we sold a majority of our interest in Volvofinans, an unconsolidated subsidiary
that finances the sale of Volvo and Renault vehicles through Volvo dealers in Sweden. As a result of the transaction, we
received $157 million as proceeds from the sale and recognized a pre-tax gain of $51 million reported in Financial
Services revenues.