Ford 2009 Annual Report Download - page 100

Notes to the Financial Statements
98 Ford Motor Company | 2009 Annual Report
NOTE 5. CASH AND RESTRICTED CASH
Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of certain contractual
arrangements are recorded as restricted in Other assets on our consolidated balance sheet. Restricted cash does not
include required minimum balances, or cash securing debt raised through securitization transactions ("securitization
cash"). See Note 19 for discussion of the minimum balance requirement related to the secured credit agreement that we
initially entered into in December 2006, and securitization cash. See Note 13 for additional information regarding
Automotive VIEs. For cash and cash equivalents, we review our disbursement accounts and reclassify any aggregate
negative balances to a liability account included in Payables on our balance sheet.
Restricted Cash
Restricted cash reflected on our balance sheet at December 31 is as follows (in millions):
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NOTE 6. MARKETABLE AND OTHER SECURITIES
Ford holds various investments classified as marketable securities including U.S. government and non-U.S.
government securities, corporate obligations and equities, and asset-backed securities. Highly-liquid investments with a
maturity of 90 days or less at the date of purchase are classified in Cash and cash equivalents. Investment securities with
a maturity date greater than 90 days at the date of the security's acquisition are classified as Marketable securities.
Prior to 2008, we classified all marketable securities as trading, available-for-sale or held-to-maturity. The unrealized
gains and losses for available-for-sale securities were recorded, net of tax, as a separate component of Accumulated
other comprehensive income/(loss) and the unrealized gains and losses for held-to-maturity securities were not
recognized. On January 1, 2008, we elected to apply the fair value option and recorded all available-for-sale or held-to-
maturity securities as trading securities. This election resulted in a cumulative after-tax increase of about $12 million to
the opening balance of Retained earnings. Marketable securities acquired subsequent to January 1, 2008 have been
recorded as trading securities.
Trading securities are recorded at fair value with unrealized gains and losses recorded in Automotive interest income
and other non-operating income/(expense), net and Financial Services income/(loss), net. Realized gains and losses are
accounted for using the specific identification method. See Note 4 for information on valuation methodologies.
Investments in Marketable Securities
Investments in marketable securities at December 31 were as follows (in millions):
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