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Notes to the Financial Statements
NOTE 4. DISCONTINUED OPERATIONS, HELD-FOR-SALE OPERATIONS, OTHER DISPOSITIONS, AND
ACQUISITIONS (Continued)
At December 31, 2005, there were no assets or liabilities on our balance sheet related to held-for-sale operations. The assets
and liabilities of Hertz classified as discontinued/held-for-sale operations at December 31, 2004 are summarized as follows
(in millions):
December 31,
2004
Assets
Cash and cash equivalents ............................................................................................................................................................................................
.
$ 679
Finance receivables.......................................................................................................................................................................................................
.
1,283
Net investment in operating leases ...............................................................................................................................................................................
.
9,111
Goodwill and other intangibles.....................................................................................................................................................................................
.
877
Other assets ...................................................................................................................................................................................................................
.
2,022
Total assets of held-for-sale operations ...................................................................................................................................................................
.
$ 13,972
Liabilities
Payables ........................................................................................................................................................................................................................
.
$ 1,538
Debt...............................................................................................................................................................................................................................
.
8,428
Other liabilities..............................................................................................................................................................................................................
.
1,372
Total liabilities of held-for-sale operations .............................................................................................................................................................
.
$ 11,338
NOTE 5. MARKETABLE, LOANED AND OTHER SECURITIES
Trading securities are recorded at fair value with unrealized gains and losses included in income. Available-for-sale securities
are recorded at fair value with net unrealized holding gains and losses reported, net of tax, in Accumulated other comprehensive
income/(loss). Held-to-maturity securities are recorded at amortized cost. Realized gains and losses are accounted for using the
specific identification method.
The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities for
which there are no quoted market prices is based on similar types of securities that are traded in the market. Book value
approximates fair value for all securities.
Expected maturities of debt securities may differ from contractual maturities because borrowers may have the right to call or
prepay obligations with or without penalty.
We loan certain securities from our portfolio to other institutions. Such securities are classified as Loaned securities.
Collateral for the loaned securities, consisting of cash or other securities, is required to be maintained at a rate of 102% of the
market value of a loaned security. We received securities as collateral in the amount of $2.8 billion and $399 million for 2005 and
2004, respectively. This collateral has not been pledged or sold. Cash collateral received is recorded as an asset in Other current
assets, offset by an obligation to return the collateral in Other liabilities. Income received from loaning securities is recorded as
Interest income and other non-operating income/(expense), net.
Ford Motor Company Annual Report 2005 68 Ford Motor Company Annual Report 2005 69