Ford 2009 Annual Report Download - page 113

Notes to the Financial Statements
Ford Motor Company | 2009 Annual Report 111
NOTE 14. NET PROPERTY AND LEASE COMMITMENTS (Continued)
Automotive sector property-related expenses for the years ended December 31 were as follows (in millions):
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Conditional Asset Retirement Obligations
Asbestos abatement was estimated using site-specific surveys where available and a per/square foot estimate where
surveys were unavailable. PCB removal costs were based on historical removal costs per transformer and applied to
transformers identified by a PCB transformer global survey we conducted.
The liability for our conditional asset retirement obligations which are recorded in Accrued liabilities and deferred
revenue at December 31 was as follows (in millions):
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Lease Commitments
We lease land, buildings and equipment under agreements that expire in various years. Minimum rental commitments
under non-cancelable operating leases were as follows (in millions):
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Rental expense was as follows (in billions):
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     
NOTE 15. IMPAIRMENT OF LONG-LIVED ASSETS
We monitor our operating units for conditions that may indicate a potential impairment of long-lived assets. These
conditions include current-period operating losses combined with a history of losses and a projection of continuing losses,
and significant negative industry or economic trends. When these conditions exist, we test for impairment. An impairment
charge is recognized for the amount by which the carrying value of the asset group exceeds its estimated fair value.
During the second quarter of 2008, higher fuel prices and the weak economic climate in the United States and Canada
resulted in a more pronounced and accelerated shift in consumer preferences away from full-size trucks and traditional
sport utility vehicles ("SUVs") to smaller, more fuel-efficient vehicles. This shift in consumer preferences combined with
lower-than-anticipated U.S. industry demand and greater-than-anticipated escalation of commodity costs resulted in
impairment charges related to Ford North America's long-lived assets and Ford Credit's operating lease portfolio.