Ford 2007 Annual Report Download - page 120

Download and view the complete annual report

Please find page 120 of the 2007 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

118 Ford Motor Company | 2007 Annual Report
NOTE 28. COMMITMENTS AND CONTINGENCIES (Continued)
Conditional Asset Retirement Obligations
On December 31, 2005, we adopted FASB Interpretation No. 47, Accounting for Conditional Asset Retirement
Obligations ("FIN 47"). In accordance with FIN 47, we accrue for costs related to legal obligations to perform
certain activities in connection with the retirement, disposal or abandonment of assets for which the fair value of
the liability can be reasonably estimated.
We have identified asbestos abatement and PCB removal as conditional asset retirement obligations.
Asbestos abatement was estimated using site-specific surveys where available and a per/square foot estimate
where surveys were unavailable. PCB removal costs were based on historical removal costs per transformer and
applied to transformers identified by a PCB transformer global survey we conducted.
Other conditional asset retirement obligations exist, including regulated substances. These costs, however,
are not estimable until a triggering event occurs (e.g., plant closing) due to the absence of historical cost, range of
potential settlement dates and variability among plants. Once a triggering event occurs and additional regulated
substance asset retirement obligations can be estimated, those costs are included as part of the liability.
Upon adoption of FIN 47, the full amount of our estimate of conditional asset retirement obligations related to
asbestos abatement and PCB removal was expensed, as an after-tax charge of $251 million shown in Cumulative
effects of changes in accounting principles at December 31, 2005. The liability for conditional asset retirement
obligations was $390 million and $399 million at December 31, 2007 and 2006, respectively.
Notes to the Financial Statements