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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 97
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Input Hierarchy of Items Measured at Fair Value on a Nonrecurring Basis
The following tables summarize the items measured at fair value subsequent to initial recognition on a nonrecurring
basis by input hierarchy for the years ended December 31 that were still held on our balance sheet at December 31
(in millions):
2010 (a)
2010 (a)2010 (a)
2010 (a)
Level 1
Level 1Level 1
Level 1
Level 2
Level 2Level 2
Level 2
Level 3
Level 3Level 3
Level 3
Total
TotalTotal
Total
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
North America
Retail receivables (b)................................
................................
$ — $ — $ 82 $ 82
Dealer loans, net (b)................................
................................
— — 22 22
Total North America ................................
................................
— — 104 104
International
Retail receivables (b)................................
................................
— — 45 45
Total International................................
................................
— — 45 45
Total Financial Services sector................................
................................
$ — $ — $ 149 $ 149
(a) There were no material Automotive sector nonrecurring fair value measurements subsequent to initial recognition recorded during the year
ended December 31, 2010.
(b) Finance receivables, including retail accounts that have been charged off and individual dealer loans where foreclosure is probable, are
measured based on the fair value of the collateral adjusted for estimated costs to sell. The collateral for retail receivables is the vehicle being
financed and for dealer loans is real estate or other property. See Note 9 for additional information related to the development of Ford Credit's
allowance for credit losses.
2009
20092009
2009
Level 1
Level 1Level 1
Level 1
Level 2
Level 2Level 2
Level 2
Level 3
Level 3Level 3
Level 3
Total
TotalTotal
Total
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
(a)
First Aquitaine Industries SAS ("First Aquitaine")
investment (b)................................
................................
$ — $ — $ 241 $ 241
U.S. consolidated dealership investment (c)
................................
— — — —
Total Automotive sector................................
................................
$ — $ — $ 241 $ 241
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
North America
Retail receivables (d) ................................
................................
$ — $ — $ 80 $ 80
Dealer loans, net (d)................................
................................
— 12 19 31
Total North America ................................
................................
— 12 99 111
International
Retail receivables (d)................................
................................
— — 71 71
Total International ................................
................................
— — 71 71
Total Financial Services sector................................
................................
$ — $ 12 $ 170 $ 182
(a) See Note 24 for discussion of our held-for-sale impairment of Volvo.
(b) During the second quarter of 2009, we recorded an other-than-temporary impairment of our investment in the Bordeaux automatic transmission
plant. The fair value measurement used to determine the impairment was based on the cost approach and considered the condition of the
plant's fixed assets. See Note 24 for additional information related to our acquisition of the plant during 2010.
(c) During the first quarter of 2009, we recorded an other-than-temporary impairment of our investment in our U.S. consolidated dealerships. The
fair value measurement used to determine the impairment was based on the market approach and reflected anticipated proceeds, expected to
be
de minimis
. The fair value of our investment was classified in Level 2 of our fair-value hierarchy.
(d) Finance receivables, including retail accounts that have been charged off and individual dealer loans where foreclosure is probable, are
measured based on the fair value of the collateral adjusted for estimated costs to sell. The collateral for retail receivables is the vehicle being
financed and for dealer loans is real estate or other property. See Note 9 for additional information related to the development of Ford Credit's
allowance for credit losses.