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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 81
NOTE 1. PRESENTATION (Continued)
The most significant Automotive joint ventures deconsolidated were Ford Otomotiv Sanayi Anonim Sirketi ("Ford Otosan")
and AutoAlliance, Inc. ("AAI"). Ford Otosan is a joint venture in Turkey between Ford (41% partner), Koc Group of Turkey
(41% partner), and public investors (18%). AAI is a joint venture between Ford (50% partner) and Mazda Motor
Corporation ("Mazda") (50% partner) in North America. We concluded in each case that the power to direct the activities
that most significantly impact the entity's economic performance were shared equally among unrelated parties. As a
result, we account for the ownership in each of these joint ventures as equity method investments. The new accounting
standard did not result in a change in the deconsolidation or consolidation of any entities within our Financial Services
sector. Refer to Note 13 for further information regarding our VIEs. We retrospectively adopted this new accounting
standard and revised our prior year financial statements. Retrospective application resulted in a change to the
presentation of our balance sheet but had no impact on our net income.
Convertible Debt Instruments. We adopted the new standard on accounting for convertible debt instruments that may
be settled in cash upon conversion (including partial cash settlement) on January 1, 2009. The standard specifies that
issuers of convertible debt securities that, upon conversion, may be settled in cash should separately account for the
liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate resulting in
higher interest expense over the life of the instrument due to amortization of the discount. We have applied
retrospectively the standard to all periods presented for our 4.25% Senior Convertible Notes due December 15, 2036
("2036 Convertible Notes") issued in December 2006.
The following financial statement line items from our sector statement of operations and sector balance sheet were
affected by implementation of the change in accounting for convertible debt instruments (in millions, except per share
information). The "revised" and "as originally reported" numbers in the following tables also assume the retrospective
application of the new accounting standard on VIE consolidation.
Statement of Operations
Statement of OperationsStatement of Operations
Statement of Operations
Revised
Revised Revised
Revised 200
200200
2008
888
As Originally
As Originally As Originally
As Originally
Reported 2008
Reported 2008Reported 2008
Reported 2008
Effect of
Effect of Effect of
Effect of
Change
ChangeChange
Change
Automotive interest expense................................................................
................................
$ 1,993 $ 1,870 $ (123)
Automotive interest income and other non-operating income/(expense), net
................................
(713) (742) 29
Income/(Loss) from continuing operations attributable to Ford Motor Company
................................
(14,775) (14,681) (94)
Net income/(loss) attributable to Ford Motor Company ................................
................................
(14,766) (14,672) (94)
Earnings per share attributable to Ford Motor Company................................
................................
(6.50) (6.46) (0.04)
Statement of Equity
Statement of EquityStatement of Equity
Statement of Equity
Revised
RevisedRevised
Revised
December 31,
December 31,December 31,
December 31,
2008
20082008
2008
As Originally
As Originally As Originally
As Originally
Reported
ReportedReported
Reported
December 31,
December 31,December 31,
December 31,
2008
20082008
2008
Effect of
Effect of Effect of
Effect of
Change
ChangeChange
Change
Capital in excess of par value of stock ................................................................
................................
$ 10,875 $ 9,076 $ 1,799
Accumulated other comprehensive income/(loss)................................
................................
(10,123) (10,084) (39)
Retained earnings/(Accumulated deficit)................................................................
................................
(16,316) (16,145) (171)
The following shows the effect on the per share amounts attributable to Ford Common and Class B Stock before and
after the adoption of the standard on accounting for convertible debt instruments:
2009
20092009
2009
Basic income/(loss)
Basic income/(loss)Basic income/(loss)
Basic income/(loss)
Before
Before Before
Before
Adoption
AdoptionAdoption
Adoption
After
After After
After
Adoption
AdoptionAdoption
Adoption
Change
ChangeChange
Change
Income/(Loss) from continuing operations ................................
................................
$ 0.92 $ 0.91 $ (0.01)
Income/(Loss) from discontinued operations................................
................................
— — —
Net income/(loss) ................................................................................................
................................
$ 0.92 $ 0.91 $ (0.01)
Diluted income/(loss)
Diluted income/(loss)Diluted income/(loss)
Diluted income/(loss)
Income/(Loss) from continuing operations ................................
................................
$ 0.86 $ 0.86 $ —
Income/(Loss) from discontinued operations................................
................................
— — —
Net income/(loss) ................................................................................................
................................
$ 0.86 $ 0.86 $ —