Ford 2009 Annual Report Download - page 156

Notes to the Financial Statements
154 Ford Motor Company | 2009 Annual Report
NOTE 26. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
When a derivative is de-designated from a fair value hedge relationship, or when the derivative in a fair value hedge
relationship is terminated before maturity, the fair value adjustment to the hedged debt continues to be reported as part of
the carrying basis of the item and is amortized over its remaining life.
Net Investment Hedges. We have used foreign currency exchange derivatives to hedge the net assets of certain
foreign entities to offset the translation and economic exposures related to our investment in these entities. The effective
portion of changes in the value of these derivative instruments is included in Accumulated other comprehensive
income/(loss) as a foreign currency translation adjustment until the hedged investment is sold or liquidated. When the
investment is sold or liquidated, the effective portion of the hedge is recognized in Automotive interest income and other
non-operating income/(expense), net as part of the gain or loss on sale. We have had no active foreign currency
derivatives classified as net investment hedges since the first quarter of 2007.
Normal Purchases and Normal Sales Classification. For physical supply contracts that are entered into for the
purpose of procuring commodities to be used in production over a reasonable period in the normal course of our
business, we have elected to apply the normal purchases and normal sales classification.
Income Effect of Derivative Instruments
The following table summarizes by hedge designation the pre-tax gains/(losses) recorded in Other comprehensive
income/(loss) ("OCI"), reclassified from Accumulated other comprehensive income/(loss) ("AOCI" ) to income and
recognized directly in income (in millions):







*DLQ/RVV
*DLQ/RVV*DLQ/RVV
*DLQ/RVV
5HFRUGH
5HFRUGH5HFRUGH
5HFRUGHGLQ
GLQGLQ
GLQ
2&,
2&,2&,
2&,

*DLQ/RVV
*DLQ/RVV*DLQ/RVV
*DLQ/RVV
5HFODVVLILHG
5HFODVVLILHG5HFODVVLILHG
5HFODVVLILHG
IURP$2&,WR
IURP$2&,WRIURP$2&,WR
IURP$2&,WR
,QFRPH
,QFRPH,QFRPH
,QFRPH

*DLQ/RVV
*DLQ/RVV*DLQ/RVV
*DLQ/RVV
5HFRJQL]HG
5HFRJQL]HG5HFRJQL]HG
5HFRJQL]HG
LQ,QFRPH
LQ,QFRPHLQ,QFRPH
LQ,QFRPH

$XWRPRWLYH6HFWRU
$XWRPRWLYH6HFWRU$XWRPRWLYH6HFWRU
$XWRPRWLYH6HFWRU  
'HVLJQDWHG&DVKIORZKHGJHV  
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    
&RPPRGLW\FRQWUDFWV 
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    
7RWDO
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    

 
)LQDQFLDO6HUYLFHV6HFWRU
)LQDQFLDO6HUYLFHV6HFWRU)LQDQFLDO6HUYLFHV6HFWRU
)LQDQFLDO6HUYLFHV6HFWRU   
)DLUYDOXHKHGJHV  
,QWHUHVWUDWHFRQWUDFWV  
1HWLQWHUHVWVHWWOHPHQWVDQGDFFUXDOVH[FOXGHGIURPWKHDVVHVVPHQWRIKHGJH
HIIHFWLYHQHVV 
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    
,QHIIHFWLYHQHVVG
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    
7RWDO
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   
'HULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV  
,QWHUHVWUDWHFRQWUDFWV 
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    
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    
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7RWDO
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    
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LQ