Ford 2009 Annual Report Download - page 152

Notes to the Financial Statements
150 Ford Motor Company | 2009 Annual Report
NOTE 24. HELD-FOR-SALE OPERATIONS, DISCONTINUED OPERATIONS, OTHER DISPOSITIONS, AND
ACQUISITIONS (Continued)
Other Dispositions
Nordic Operations. In 2008, Ford Credit completed the creation of a joint venture finance company and transferred the
majority of its business and assets from Denmark, Finland, Norway, and Sweden into the joint venture. The joint venture
will support the sale of Ford vehicles in these markets. As a result of the sale, we reduced Finance receivables, net by
$1.7 billion, and recognized a pre-tax gain of $85 million (net of transaction costs and including $35 million of foreign
currency translation adjustments) in Financial Services other income/(loss), net. Ford Credit reports its ownership interest
in the joint venture as an equity method investment.
PRIMUS Financial Services Inc. ("PRIMUS Japan"). In 2008, Ford Credit completed the sale of 96% of its ownership
interest in PRIMUS Japan, its operation in Japan that offered automotive retail and wholesale financing of Ford and
Mazda vehicles. As a result of the sale, we reduced Finance receivables, net by $1.8 billion, reduced Debt by
$252 million, and recognized a pre-tax gain of $22 million (net of transaction costs and including $28 million of foreign
currency translation adjustments) in Financial Services other income/(loss), net. Ford Credit reports its remaining
ownership interest as a cost method investment.
Primus Finance and Leasing, Inc. ("Primus Philippines"). In 2008, Ford Credit completed the sale of its 60%
ownership interest in Primus Philippines, its operation in the Philippines that offered automotive retail and wholesale
financing of Ford and Mazda vehicles. Ford Credit also completed the sale of its 40% ownership interest in PFL Holdings,
Inc., a holding company in the Philippines that owned the remaining 40% ownership interest in Primus Philippines. As a
result of the sale, we recognized a pre-tax gain of $5 million (net of transaction costs and including $1 million of foreign
currency translation adjustments) in Financial Services other income/(loss), net.
NOTE 25. CAPITAL STOCK AND AMOUNTS PER SHARE
Capital Stock. 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 when and as paid, with stock dividends payable in shares of stock of the class held. As discussed in Note 19,
we are restricted in our ability to pay dividends (other than dividends payable in stock) under the terms of the amended
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.
Earnings Per Share. We calculate earnings per share on a basic and on a diluted basis. Basic earnings per share
measures our performance over the reporting period. The numerator of our basic earnings per share calculation is our
income/(loss) from continuing operations attributable to Ford Motor Company and the denominator is the average shares
outstanding for the period. Diluted earnings per share measures our performance over the reporting period (less
restricted and uncommitted ESOP shares), while giving effect to all dilutive potential common shares that were
outstanding during the period. The dilutive earnings per share calculation adjusts the basic calculation by the dilutive
effect of potential Common Stock (securities such as stock options, warrants, convertible securities, and contingent stock
agreements). Each individual type of potential Common Stock is evaluated for its dilutive effect. If a security is
determined to be dilutive, income/(loss) from continuing operations attributable to Ford Motor Company is then adjusted
by the interest expense, amortization of discount, amortization of fees, and other changes in income or loss that would
result from the assumed conversion. The number of average shares outstanding is adjusted by the number of shares this
conversion would create. A security that is shown to be antidilutive would not be included in the diluted earnings per
share calculation.