Ford 2009 Annual Report Download - page 106

Notes to the Financial Statements
104 Ford Motor Company | 2009 Annual Report
NOTE 11. EQUITY IN NET ASSETS OF AFFILIATED COMPANIES (Continued)
We received $152 million, $224 million, and $216 million of dividends from these affiliated companies for the years
ended December 31, 2009, 2008, and 2007, respectively.
Changes in Equity Method Investments
Getrag America Holdings. In 2009, Getrag America Holdings changed its operating profile from a development stage
enterprise to an operating business. Accordingly, we reconsidered the consolidation analysis and determined this to be a
variable interest entity of which we are the primary beneficiary.
DFO Partnership. In March 2009, our Board of Directors approved a potential sale of the Financial Services sector
investment in DFO Partnership. DFO Partnership holds a portfolio of "non-core" diversified leveraged lease assets
(e.g., railcars, aircraft, and energy facilities). During the first quarter of 2009, an other-than-temporary impairment of the
investment in DFO Partnership of $141 million was recorded in Financial Services equity in net income/(loss) of affiliated
companies. During the third quarter of 2009, the Financial Services sector completed the sale of its interest in DFO
Partnership to a subsidiary of Bank of America. As a result of the sale, a pre-tax gain of $9 million (net of transaction
costs) was recognized in Financial Services other income/(loss), net.
NOTE 12. SIGNIFICANT UNCONSOLIDATED AFFILIATES
We are required to measure the impact of all unconsolidated majority-owned subsidiaries and equity-method
investments to determine their significance to our financial statements. If the affiliates meet the defined thresholds of
significance, certain financial disclosure data is required.
Mazda
Mazda was considered to be a significant unconsolidated affiliate in 2007. Presented below is summarized financial
information for Mazda for 2008 and 2007.
In November 2008, we sold 278 million shares of Mazda for net proceeds of $532 million. As a result of the transaction,
we recorded a pre-tax loss on the sale of $121 million, net of transaction costs and recognition of foreign currency
translation adjustments, in Automotive interest income and other non-operating income/(expense), net. We continue to own
195.5 million shares of Mazda, representing an 11% ownership interest. We no longer have certain management rights we
previously held and, as a result, we have deemed that we no longer hold significant influence over Mazda's operating and
financial policies. Consequently, we account for our remaining investment of $447 million as of December 31, 2009 as a
marketable security.
As a result, we had no equity in net assets of affiliated companies at December 31, 2008 associated with our investment
in Mazda. Our investment in Mazda included $0 of goodwill included in Equity in net assets of affiliated companies at
December 31, 2008. Dividends received from Mazda were $27 million and $36 million for the years ended
December 31, 2008 and 2007, respectively.
Summarized income statement information from Mazda's published financial statements, prepared in accordance with
Japanese GAAP, for the twelve months ended September 30, 2008 and 2007, and summarized balance sheet information
from Mazda's published financial statements at September 30, 2008 and 2007 is as follows (in millions):
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