Ford 2009 Annual Report Download - page 144

Notes to the Financial Statements
142 Ford Motor Company | 2009 Annual Report
NOTE 22. EMPLOYEE SEPARATION ACTIONS (Continued)
We recorded in Automotive cost of sales pre-tax charges of $122 million and $323 million for 2009 and 2008,
respectively, and recorded a reduction to expense for rescissions of previous acceptances of $298 million for 2007.
Other Employee Separation Actions. The following table shows pre-tax charges for other hourly and salaried employee
separation actions, which are recorded in Automotive cost of sales and Selling, administrative and other expenses
(in millions):







 


)RUG(XURSH

     
)RUG1RUWK$PHULFD86VDODULHGUHODWHG 

     
9ROYR

     
)RUG6RXWK$PHULFD 

   ಧ  ಧ
)RUG$VLD3DFLILF$IULFD

     
The charges above exclude costs for pension and OPEB.
Financial Services Sector
Separation Actions
In 2009, Ford Credit announced plans to restructure its U.S. operations to meet changing business conditions,
including the decline in its receivables. The restructuring affects its servicing, sales, and central operations. In 2009,
2008, and 2007, Ford Credit recognized pre-tax charges of $64 million, $16 million, and $37 million, respectively, in
Selling, administrative and other expenses for this and other employee separation actions outside of the United States.
These charges exclude pension costs.
NOTE 23. INCOME TAXES
Income Taxes
According to U.S. GAAP, we have elected to recognize accrued interest related to unrecognized tax benefits and tax-
related penalties in the Provision for/(Benefit from) income taxes on our consolidated statement of operations.
Valuation of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary
differences that exist between the financial statement carrying value of assets and liabilities and their respective tax
bases, and operating loss and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets
and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be
recovered or paid.
Our accounting for deferred tax consequences represents our best estimate of the likely future tax consequences of
events that have been recognized in our financial statements or tax returns and their future probability. In assessing the
need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of
the deferred tax assets. If, based on the weight of available evidence, it is more likely than not the deferred tax assets will
not be realized, we record a valuation allowance.