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Notes to the Financial Statements
98 Ford Motor Company | 2010 Annual Report
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Nonrecurring Fair Value Changes
The following table summarizes the total change in value of items for which a nonrecurring fair value adjustment has
been included in our consolidated statement of operations for the periods ended December 31, related to items still held
on our balance sheet at December 31 (in millions):
Total Gains / (Losses)
Total Gains / (Losses)Total Gains / (Losses)
Total Gains / (Losses)
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
First Aquitaine investment (a)................................................................................................
................................
$ — $ (79) $ —
U.S. consolidated dealership investment (a) ................................................................
................................
— (78) (88)
North America net property (b)................................................................
................................
— — (5,300)
Held-for-sale operations (c)................................................................................................
................................
— — (18)
Total Automotive sector................................................................................................
................................
$ — $ (157) $ (5,406)
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
North America
Retail receivables (d) ................................................................................................
................................
$ (29) $ (24) $ (51)
Dealer loans, net (d) ................................................................................................
................................
(3) (1) —
Net investment in certain operating leases (e) ................................................................
................................
— — (2,086)
Total North America ................................................................................................
................................
(32) (25) (2,137)
International
Retail receivables (d)................................................................................................
................................
(25) (141) (23)
Total International ................................................................................................
................................
(25) (141) (23)
Total Financial Services sector................................................................
................................
$ (57) $ (166) $ (2,160)
(a) Other-than-temporary impairments of investments are recorded in
Automotive cost of sales.
(b) During the second quarter of 2008, we recorded an impairment related to Ford North America held-and-used long-lived assets in
Automotive
cost of sales
. See Note 15 for additional discussion of this impairment.
(c) We recorded a held-for-sale impairment related to the Automotive Components Holdings, LLC ("ACH") Milan plant during the second quarter of
2008. See Note 24 for additional discussion of this impairment.
(d) Fair value changes related to retail finance receivables that have been charged off or dealer loans that have been impaired based on the fair
value of the collateral adjusted for estimated costs to sell are recorded in
Financial Services provision for credit and insurance losses
.
(e) An impairment charge was recorded during the second quarter of 2008 related to certain vehicle lines in Ford Credit's North America operating
lease portfolio in
Selling, administrative and other expenses
on our consolidated statement of operations and in
Financial Services depreciation
on our sector statement of operations
.
See Note 15 for additional discussion of this impairment.
NOTE 5. RESTRICTED CASH
Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of certain contractual
agreements are recorded as restricted in Other assets on our balance sheet.
Our Automotive sector restricted cash balances primarily include cash collateral required to be held against loans from
the European Investment Bank ("EIB") and cash collateral required for bank guarantees. Additionally, restricted cash
includes various escrow agreements related to insurance, customs, environmental matters, and contractual obligations
related to the sale or disposition of a business. Our Financial Services sector restricted cash balances primarily include
cash collateral required to be held against loans from the EIB and cash held to meet certain local governmental and
regulatory reserve requirements.
Restricted cash does not include required minimum balances, or cash securing debt issued through securitization
transactions ("securitization cash"). See Note 19 for discussion of the minimum balance requirement related to the
secured credit agreement that we initially entered into in December 2006 ("Credit Agreement"), and securitization cash.
Restricted cash reflected on our balance sheet at December 31 was as follows (in millions):
2010
20102010
2010
2009
20092009
2009
Automotive sector ................................................................................................................................
......................
$ 433 $ 713
Financial Services sector ................................................................................................
................................
298 335
Total Company................................................................................................................................
.........................
$ 731 $ 1,048