Ford 2011 Annual Report Download - page 162

Notes to the Financial Statements
160 Ford Motor Company | 2011 Annual Report
NOTE 22. INCOME TAXES (Continued)
Other
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years listed
(in millions):
Balance at January 1
Increase – tax positions in prior periods
Increase – tax positions in current period
Decrease – tax positions in prior periods
Settlements
Lapse of statute of limitations
Foreign currency translation adjustment
Balance at December 31
2011
$1,063
1,045
59
(134)
(186)
(21)
(8)
$1,818
2010
$ 1,173
138
52
(141)
(109)
(29)
(21)
$ 1,063
The amount of unrecognized tax benefits at December 31, 2011 and 2010 that would affect the effective tax rate if
recognized was $1.2 billion and $510 million, respectively.
Examinations by tax authorities have been completed through 2005 in Germany, and through 2007 in Canada, the
United States, and the United Kingdom. Although examinations have been completed in these jurisdictions, various
unresolved transfer pricing disputes exist for years dating back to 1994.
We recorded in our consolidated statement of operations approximately $77 million, $45 million, and $54 million in
tax-related interest income for the years ended December 31, 2011, 2010, and 2009. As of December 31, 2011 and 2010,
we had recorded a net payable of $171 million and $77 million, respectively, for tax-related interest.
NOTE 23. HELD-FOR-SALE OPERATIONS, DISPOSITIONS, AND ACQUISITIONS
We classify assets and liabilities as held for sale ("disposal group") when management, having the authority to
approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal
group is available for immediate sale in its present condition. We also consider whether an active program to locate a
buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation
to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant
changes to the plan will be made or that the plan will be withdrawn. We classify a disposal group as a discontinued
operation when the criteria to be classified as held for sale have been met and we will not have any significant
involvement with the disposal group after the sale.
When we classify a disposal group as held for sale, we test for impairment. An impairment charge is recognized when
the carrying value of the disposal group exceeds the estimated fair value, less transaction costs.
We aggregate the assets and liabilities of all held-for-sale disposal groups on the balance sheet for the period in
which the disposal group is held for sale. To provide comparative balance sheets, we also aggregate the assets and
liabilities for significant held-for-sale disposal groups on the prior-period balance sheet.
Automotive Sector
Held-for-Sale Operations
Ford Russia. In the second quarter of 2011, we signed an agreement with Sollers OJSC ("Sollers") establishing a
50/50 joint venture in Russia, FordSollers, and classified the assets and liabilities of our operations in Russia as held for
sale and suspended depreciation and amortization on those assets. A joint application by Ford and Sollers to the Russian
government for participation in the new industrial assembly regime, which will qualify the joint venture for reduced import
duties for parts imported into Russia, was approved by the Ministry of Economic Development and Trade on June 1, 2011.