Annual Report 2011 - Ford Motor Company
Annual Report 2011 - Ford Motor Company
Annual Report 2011 - Ford Motor Company
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Notes to the Financial Statements<br />
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)<br />
Input Hierarchy of Items Measured at Fair Value on a Nonrecurring Basis<br />
The following tables summarize the items measured at fair value subsequent to initial recognition on a nonrecurring<br />
basis by input hierarchy for the years ended December 31 that were still held on our balance sheet at those dates<br />
(in millions):<br />
<strong>2011</strong><br />
2010<br />
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total<br />
Financial Services Sector<br />
North America<br />
Retail receivables (a)<br />
$ — $ — $ 70 $ 70 $ — $ — $ 82 $ 82<br />
Dealer loans, net (a)<br />
— — 6 6 — — 22 22<br />
Total North America<br />
International<br />
— — 76 76 — — 104 104<br />
Retail receivables (a)<br />
— — 39 39 — — 45 45<br />
Total International<br />
— — 39 39 — — 45 45<br />
Total Financial Services sector<br />
__________<br />
$ — $ — $ 115 $ 115 $ — $ — $ 149 $ 149<br />
(a) Finance receivables, including retail accounts that have been charged off and individual dealer loans where foreclosure is probable, are measured<br />
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<br />
dealer loans is real estate or other property. See Note 9 for additional information related to the development of <strong>Ford</strong> Credit's allowance for credit<br />
losses.<br />
Nonrecurring Fair Value Changes<br />
The following table summarizes the total change in value of items for which a nonrecurring fair value adjustment has<br />
been included in our statement of operations for the years ended December 31 related to items still held on our balance<br />
sheet at those dates (in millions):<br />
Automotive Sector<br />
First Aquitaine investment (a)<br />
U.S. consolidated dealership investment (a)<br />
Total Automotive sector<br />
Total Gains / (Losses)<br />
Financial Services Sector<br />
North America<br />
Retail receivables (b)<br />
$ (23) $ (29) $ (24)<br />
Dealer loans, net (b)<br />
—<br />
(3)<br />
(1)<br />
Total North America<br />
International<br />
(23)<br />
(32)<br />
(25)<br />
Retail receivables (b)<br />
(14)<br />
(25)<br />
(141)<br />
Total International<br />
(14)<br />
(25)<br />
(141)<br />
Total Financial Services sector<br />
__________<br />
$ (37) $ (57) $ (166)<br />
(a) Other-than-temporary impairments of investments are recorded in Automotive cost of sales.<br />
(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<br />
value of the collateral adjusted for estimated costs to sell are recorded in Financial Services provision for credit and insurance losses.<br />
<strong>2011</strong><br />
$ —<br />
—<br />
$ —<br />
2010<br />
$ —<br />
—<br />
$ —<br />
2009<br />
$ (79)<br />
(78)<br />
$ (157)<br />
<strong>Ford</strong> <strong>Motor</strong> <strong>Company</strong> | <strong>2011</strong> <strong>Annual</strong> <strong>Report</strong> 107
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