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Notes to the Financial Statements
Ford Motor Company | 2011 Annual Report 107
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 those dates
(in millions):
Financial Services Sector
North America
Retail receivables (a)
Dealer loans, net (a)
Total North America
International
Retail receivables (a)
Total International
Total Financial Services sector
2011
Level 1
$—
—
—
—
—
$—
Level 2
$—
—
—
—
—
$—
Level 3
$70
6
76
39
39
$115
Total
$70
6
76
39
39
$115
2010
Level 1
$—
—
—
—
—
$—
Level 2
$—
—
—
—
—
$—
Level 3
$82
22
104
45
45
$149
Total
$82
22
104
45
45
$149
__________
(a) 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.
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 statement of operations for the years ended December 31 related to items still held on our balance
sheet at those dates (in millions):
Automotive Sector
First Aquitaine investment (a)
U.S. consolidated dealership investment (a)
Total Automotive sector
Financial Services Sector
North America
Retail receivables (b)
Dealer loans, net (b)
Total North America
International
Retail receivables (b)
Total International
Total Financial Services sector
Total Gains / (Losses)
2011
$—
—
$—
$(23)
—
(23)
(14)
(14)
$(37)
2010
$—
—
$—
$(29)
(3)
(32)
(25)
(25)
$(57)
2009
$(79)
(78)
$ (157)
$(24)
(1)
(25)
(141)
(141)
$ (166)
__________
(a) Other-than-temporary impairments of investments are recorded in Automotive cost of sales.
(b) Fair value changes related to retail finance receivables that have been written down 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.