Ford 2009 Annual Report Download - page 157

Notes to the Financial Statements
Ford Motor Company | 2009 Annual Report 155
NOTE 26. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
For our Automotive sector, we report in Automotive cost of sales on our consolidated statement of operations gains and
losses on cash flow hedges and foreign exchange contracts on operating exposures and commodity contracts not
designated as hedging instruments. Gains and losses on foreign exchange contracts on investment portfolios and other
contracts not designated as hedging instruments are reported in Automotive interest income and other non-operating
income/(expense), net.
For our Financial Services sector, we report net interest settlements and accruals on fair value hedges (which are
excluded from the assessment of hedge effectiveness) in Interest expense on our consolidated statement of operations,
with the exception of foreign currency revaluation on accrued interest ($2 million gain in 2009) which is reported in Selling,
administrative, and other expenses. Ineffectiveness on fair value hedges and gains and losses on interest rate contracts
not designated as hedging instruments are reported in Financial Services other income/(loss), net. Gains and losses on
foreign exchange and cross currency interest rate swap contracts not designated as hedging instruments are reported in
Selling, administrative, and other expenses.
Accumulated Other Comprehensive Income/(Loss) Activity
The following table summarizes activity in Accumulated other comprehensive income/(loss) related to designated cash
flow hedges for period ended December 31 (in millions):





%HJLQQLQJRI\HDUQHWXQUHDOL]HGJDLQORVVRQGHULYDWLYHILQDQFLDOLQVWUXPHQWV 

 
,QFUHDVH'HFUHDVHLQIDLUYDOXHRIGHULYDWLYHV 

 
*DLQVUHFODVVLILHGIURP
$FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPHORVV

 
(QGRI\HDUQHWXQUHDOL]HGJDLQORVVRQGHULYDWLYHILQDQFLDOLQVWUXPHQWV

 
We expect to reclassify existing net gains of $1 million from Accumulated other comprehensive income/(loss) to
Automotive cost of sales during the next twelve months as the underlying exposures are realized.
Balance Sheet Effect of Derivative Instruments
The following table summarizes the estimated fair value of our derivative financial instruments at December 31, 2009
(in millions):

   )DLU9DOXHRI )DLU9DOXHRI)DLU9DOXHRI
)DLU9DOXHRI
 )DLU9DOXHRI )DLU9DOXHRI)DLU9DOXHRI
)DLU9DOXHRI


1RWLRQDOV
1RWLRQDOV1RWLRQDOV
1RWLRQDOV
$VVHWV
$VVHWV$VVHWV
$VVHWV
/LDELOLWLHV /LDELOLWLHV/LDELOLWLHV
/LDELOLWLHV

$XWRPRWLYH6HFWRU
$XWRPRWLYH6HFWRU$XWRPRWLYH6HFWRU
$XWRPRWLYH6HFWRU

&DVKIORZKHGJHV 
)RUHLJQH[FKDQJHFRQWUDFWV

   ಧ  

'HULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV 
)RUHLJQH[FKDQJHFRQWUDFWVದ RSHUDWLQJH[SRVXUHV 

     
&RPPRGLW\FRQWUDFWV 

     
2WKHUದ LQWHUHVWUDWHFRQWUDFWVDQGZDUUDQWV

    
7RWDOGHULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV

     

7RWDO$XWRPRWLYHVHFWRUGHULYDWLYHLQVWUXPHQWV

     

)LQDQFLDO6HUYLFHV6HFWRU
)LQDQFLDO6HUYLFHV6HFWRU)LQDQFLDO6HUYLFHV6HFWRU
)LQDQFLDO6HUYLFHV6HFWRU

)DLUYDOXHKHGJHV 
,QWHUHVWUDWHFRQWUDFWV 

     ಧ

'HULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV 
,QWHUHVWUDWHFRQWUDFWV 

     
)RUHLJQH[FKDQJHFRQWUDFWV

     
&URVVFXUUHQF\LQWHUHVWUDWHVZDSFRQWUDFWV 

     
7RWDOGHULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV

     

7RWDO)LQDQFLDO6HUYLFHVVHFWRUGHULYDWLYHLQVWUXPHQWV

     