Ford 2003 Annual Report Download - page 81

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2003 ANNUAL REPORT 79
NOTES TO FINANCIAL STATEMENTS
The amortized cost and fair value of investments in available-for-sale and held-to-maturity securities by contractual maturity for
Automotive and Financial Service sectors were as follows (in millions):
2003 2002
Available-for-sale Held-to-maturity Available-for-sale Held-to-maturity
Contractual Amortized Fair Amortized Fair Amortized Fair Amortized Fair
Maturity Cost Value Cost Value Cost Value Cost Value
Automotive
1 year $ 257 $ 258 $ - $ - $ 291 $ 294 $ - $ -
2-5 years 1,231 1,227 - - 993 1,004 - -
6-10 years 188 188 - - 169 172 - -
11 years and later 174 176 - - 123 125 - -
Total $ 1,850 $ 1,849 $ - $ - $ 1,576 $ 1,595 $ - $ -
Financial Services
1 year $50$51 $- $- $6$6 $- $-
2-5 years 146 149 6 6 167 173 3 3
6-10 years 88 93 - - 97 103 1 1
11 years and later 63 65 2 2 85 93 2 2
Mortgage-backed
securities 177 181 - - 216 224 - -
Equity securities 47 75 - - 46 59 - -
Total $ 571 $ 614 $ 8 $ 8 $617 $658 $6$6
NOTE 5. INVENTORIES — AUTOMOTIVE SECTOR
Inventories at December 31 were as follows (in millions):
2003 2002
Raw materials, work-in-process and supplies $ 3,842 $ 3,174
Finished products 6,335 4,760
Total inventories at FIFO 10,177 7,934
Less LIFO adjustment (996) (957)
Total inventories $ 9,181 $ 6,977
Inventories are stated at lower of cost or market. About one-third of inventories were determined under the last-in,
first-out method.
NOTE 6. NET PROPERTY AND RELATED EXPENSES — AUTOMOTIVE SECTOR
Net property at December 31 was as follows (in millions):
Average
Depreciable
Life (Years) 2003 2002
Land $ 675 $ 598
Buildings and land improvements 30 12,204 10,337
Machinery, equipment and other 14 44,582 39,358
Construction in progress 2,652 2,688
Total land, plant and equipment 60,113 52,981
Accumulated depreciation (30,112) (26,568)
Net land, plant and equipment 30,001 26,413
Special tools, net of amortization 5 11,992 9,939
Net property $ 41,993 $ 36,352
Property-related expenses were as follows (in millions):
2003 2002 2001
Depreciation $ 2,814 $ 2,435 $ 5,287
Amortization of special tools 2,658 2,461 3,265
Total $ 5,472 $ 4,896 $ 8,552 *
Maintenance and rearrangement $ 1,791 $ 1,962 $ 2,035
* Includes impairment charges of $3,555 million in 2001 (see Note 18).
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