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Notes to the Financial Statements
Ford Motor Company | 2009 Annual Report 85
NOTE 1. PRESENTATION (Continued)
Automotive Acquisition of Financial Services Debt. During 2008 and 2009, we issued 159,913,115 shares of Ford
Common Stock through an equity distribution agreement and used the proceeds of $1 billion to purchase Ford Credit debt
and related interest of $20 million. We recognized a gain on extinguishment of debt of $68 million on the transactions,
recorded in Automotive interest income and other non-operating income/(expense), net. Approximately $135 million of
the debt purchased has matured, and $267 million was repurchased from us by Ford Credit.
On our consolidated balance sheet, we net the remaining debt purchased by Ford with the outstanding debt of Ford
Credit, reducing our consolidated marketable securities and debt balances by $646 million and $492 million at
December 31, 2009 and 2008, respectively. On our sector balance sheet, the acquisition is reported separately as
Automotive marketable securities and Financial Services debt as it has not been retired or cancelled by Ford Credit.
Financial Services Acquisition of Automotive Debt. During 2009, the Financial Services sector acquired $2.2 billion
principal amount of Automotive secured term loan and $3.4 billion principal amount of Automotive unsecured debt
securities for $2.2 billion of cash. The debt was then distributed to us, whereupon it was forgiven or used in satisfaction of
Ford Credit's tax liabilities with us under our tax-sharing agreement. The debt acquired is no longer outstanding. We
recorded gains on the extinguishment of debt (net of unamortized discounts, premiums and fees, and transaction costs) of
$3.3 billion in Automotive interest income and other non-operating income/(expense), net. See Note 19 for further
discussion of these transactions