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 17. RETIREMENT BENEFITS (Continued)<br />
Non-U.S. Plans<br />
Return on plan assets<br />
Attributable<br />
Fair<br />
Value<br />
at<br />
January 1,<br />
2010<br />
to Assets<br />
Held<br />
at<br />
December 31,<br />
2010<br />
Attributable<br />
to<br />
Assets<br />
Sold<br />
Asset Category<br />
Equity<br />
U.S. companies<br />
$ — $ — $ —<br />
International companies<br />
21<br />
—<br />
1<br />
Commingled funds<br />
—<br />
—<br />
—<br />
Total equity<br />
Fixed Income<br />
21<br />
—<br />
1<br />
U.S. government<br />
—<br />
—<br />
—<br />
U.S. government-sponsored<br />
enterprises<br />
—<br />
—<br />
—<br />
Non-U.S. government<br />
Corporate bonds<br />
77<br />
9<br />
2<br />
Investment grade<br />
28<br />
—<br />
(2)<br />
High yield<br />
19<br />
1<br />
(2)<br />
Other credit<br />
7<br />
—<br />
—<br />
Mortgage/other asset-backed<br />
43<br />
2<br />
—<br />
Commingled funds<br />
—<br />
—<br />
1<br />
Derivative financial<br />
instruments<br />
2<br />
—<br />
—<br />
Total fixed income<br />
Alternatives<br />
176<br />
12<br />
(1)<br />
Hedge funds<br />
244<br />
23<br />
—<br />
Private equity<br />
4<br />
—<br />
—<br />
Real estate<br />
—<br />
2<br />
—<br />
Total alternatives<br />
248<br />
25<br />
—<br />
Other (a)<br />
3,989<br />
391<br />
—<br />
Total Level 3 fair value<br />
_______<br />
$ 4,434 $ 428 $ —<br />
(a) Primarily <strong>Ford</strong>-Werke plan assets (insurance contract valued at $3,371 million).<br />
NOTE 18. DEBT AND COMMITMENTS<br />
2010<br />
Net<br />
Purchases/<br />
(Settlements)<br />
$ —<br />
(9)<br />
—<br />
(9)<br />
—<br />
—<br />
(3)<br />
2<br />
4<br />
(7)<br />
—<br />
7<br />
(2)<br />
1<br />
444<br />
27<br />
9<br />
480<br />
—<br />
$ 472<br />
Into<br />
Level 3<br />
$ —<br />
6<br />
—<br />
6<br />
Transfers<br />
—<br />
—<br />
26<br />
5<br />
—<br />
—<br />
2<br />
—<br />
—<br />
33<br />
—<br />
—<br />
—<br />
—<br />
—<br />
$ 39<br />
Out of<br />
Level 3<br />
$ —<br />
(9)<br />
—<br />
(9)<br />
<strong>Ford</strong> <strong>Motor</strong> <strong>Company</strong> | <strong>2011</strong> <strong>Annual</strong> <strong>Report</strong> 143<br />
—<br />
—<br />
(8)<br />
(18)<br />
(2)<br />
—<br />
(13)<br />
—<br />
—<br />
(41)<br />
—<br />
—<br />
—<br />
—<br />
—<br />
$ (50)<br />
Fair<br />
Value<br />
at<br />
December 31,<br />
2010<br />
$ —<br />
10<br />
—<br />
10<br />
—<br />
—<br />
103<br />
15<br />
20<br />
—<br />
34<br />
8<br />
—<br />
180<br />
711<br />
31<br />
11<br />
753<br />
4,380<br />
$ 5,323<br />
Our debt consists of short-term and long-term unsecured debt securities, convertible debt securities, and unsecured<br />
and secured borrowings from banks and other lenders. Debt issuances are placed directly by us or through securities<br />
dealers or underwriters and are held by institutional and retail investors. In addition, <strong>Ford</strong> Credit sponsors securitization<br />
programs that provide short-term and long-term asset-backed financing through institutional investors in the U.S. and<br />
international capital markets.<br />
Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium and adjustments<br />
related to designated fair value hedges (see Note 25 for policy detail). Discounts, premiums, and costs directly related to<br />
the issuance of debt generally are capitalized and amortized over the life of the debt and are recorded in Interest expense<br />
using the interest method. Gains and losses on the extinguishment of debt are recorded in Automotive interest income<br />
and other non-operating income/(expense), net and Financial Services other income/(loss), net.<br />
Amounts borrowed and repaid are reported in our Statement of Cash Flows as Net cash (used in)/provided by<br />
financing activities. Interest, fees and deferred charges paid in excess of the amount borrowed are reported as Net cash<br />
(used in)/provided by operating activities.
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