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Notes to the Financial Statements
168 Ford Motor Company | 2011 Annual Report
NOTE 25. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Accumulated Other Comprehensive Income/(Loss) Activity
The following table summarizes activity on a pre-tax basis in Accumulated other comprehensive income/(loss) related
to designated cash flow hedges for the years ended December 31 (in millions):
Beginning of year: net unrealized gain/(loss) on derivative financial instruments
Increase/(Decrease) in fair value of derivatives
Gains reclassified from Accumulated other comprehensive income/(loss)
End of year: net unrealized gain/(loss) on derivative financial instruments
2011
$(22)
(100)
(119)
$(241)
2010
$2
(7)
(17)
$(22)
2009
$129
(86)
(41)
$2
We expect to reclassify existing net losses of $158 million from Accumulated other comprehensive income/(loss) to
Automotive cost of sales during the next twelve months as the underlying exposures are realized.
Balance Sheet Effect of Derivative Instruments
The following tables summarize the notional amount and estimated fair value of our derivative financial instruments at
December 31 (in millions):
Automotive Sector
Cash flow hedges:
Foreign currency exchange contracts
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts
Commodity contracts
Other – warrants
Total derivatives not designated as hedging instruments
Total Automotive sector derivative instruments
Financial Services Sector
Fair value hedges:
Interest rate contracts
Derivatives not designated as hedging instruments:
Interest rate contracts
Foreign currency exchange contracts
Cross-currency interest rate swap contracts
Other (a)
Total derivatives not designated as hedging instruments
Total Financial Services sector derivative instruments
2011
Notionals
$14,535
5,692
2,396
12
8,100
$22,635
$7,786
70,639
3,582
987
2,500
77,708
$85,494
Fair Value of
Assets
$120
92
2
4
98
$218
$526
670
30
12
137
849
$1,375
Fair Value of
Liabilities
$368
80
372
—
452
$820
$—
237
50
12
—
299
$299
__________
(a) Represents derivative features included in the FUEL notes (see Note 4).