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Notes to the Financial Statements
82 Ford Motor Company | 2009 Annual Report
NOTE 1. PRESENTATION
For purposes of this report, "Ford," the "Company," "we," "our," "us" or similar references mean Ford Motor Company
and our consolidated subsidiaries and our consolidated variable interest entities ("VIEs") of which we are the primary
beneficiary, unless the context requires otherwise.
We prepare our financial statements in accordance with generally accepted accounting principles ("GAAP") in the
United States. We present the financial statements on a consolidated basis and on a sector basis for our Automotive and
Financial Services sectors. The additional information provided in the sector statements enables the reader to better
understand the operating performance, financial position, cash flows, and liquidity of our two very different businesses.
We eliminate all intercompany items and transactions in both the consolidated and sector basis financial statements. In
certain circumstances, presentation of these intercompany eliminations or consolidated adjustments differ between the
consolidated and sector financial statements. These line items are reconciled below under "Reconciliations between
Consolidated and Sector Financial Statements."
The majority of the amounts presented on our balance sheets are based on historical values. However, certain
amounts are shown at fair value. For additional information on fair value, see Note 4.
To provide comparative prior-year balance sheets, certain amounts on our December 31, 2008 consolidated and
sector balance sheets and related footnotes have been reclassified for operations held for sale in 2009. All held-for-sale
assets and liabilities are excluded from the footnotes unless otherwise noted. For information about our held-for-sale
operations, see Note 24.
In the first quarter of 2009, our wholly-owned subsidiary Ford Motor Credit Company LLC ("Ford Credit") recorded a
$630 million cumulative adjustment to correct for the overstatement of Financial Services sector cash and cash
equivalents and certain accounts payable that originated in prior periods. The impact on previously-issued annual and
interim financial statements was not material.
Subsequent Events. We evaluated the effects of all subsequent events from the end of the fourth quarter through
February 25, 2010, the date we filed our financial statements with the U.S. Securities and Exchange Commission ("SEC").
Adoption of New Accounting Standards
Noncontrolling Interests. We adopted the Financial Accounting Standards Board's ("FASB") revised standard on
accounting for noncontrolling interests on January 1, 2009. This standard establishes accounting and reporting
requirements for the noncontrolling interest (formerly "minority interest") in a subsidiary and for the deconsolidation of a
subsidiary. The standard clarifies that a noncontrolling interest is an ownership interest in a consolidated entity that
should be reported as equity in the consolidated financial statements. We have retrospectively applied the presentation
and disclosure requirements of this standard for all periods. This requirement changed the presentation of our
consolidated and sector statements of operations, our consolidated and sector balance sheets, and our consolidated
statement of equity.
Convertible Debt Instruments. We adopted the FASB's new standard on accounting for convertible debt instruments
that may be settled in cash upon conversion (including partial cash settlement) on January 1, 2009. The standard
specifies that issuers of convertible debt securities that, upon conversion, may be settled in cash should separately
account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate
resulting in higher interest expense over the life of the instrument due to amortization of the discount. This standard
applies to our 4.25% Senior Convertible Notes due December 15, 2036 ("2036 Convertible Notes") issued in
December 2006 and our 4.25% Senior Convertible Notes due December 15, 2016 ("2016 Convertible Notes") issued in
November 2009. We have applied retrospectively the standard to all periods presented for the 2036 Convertible Notes.