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Notes to the Financial Statements
136 Ford Motor Company | 2010 Annual Report
NOTE 18. RETIREMENT BENEFITS (Continued)
Non
NonNon
Non-
---U.S. Plans
U.S. Plans U.S. Plans
U.S. Plans
2009
20092009
2009
Return on plan assets:
Return on plan assets:Return on plan assets:
Return on plan assets:
Fair Va
Fair VaFair Va
Fair Value at
lue at lue at
lue at
January 1,
January 1, January 1,
January 1,
2009
20092009
2009
Attributable to
Attributable to Attributable to
Attributable to
Assets Held at
Assets Held at Assets Held at
Assets Held at
December 31,
December 31, December 31,
December 31,
2009
20092009
2009
Attributable to
Attributable to Attributable to
Attributable to
Assets Sold
Assets SoldAssets Sold
Assets Sold
Net
Net Net
Net
Purchases/
Purchases/Purchases/
Purchases/
(Settlements)
(Settlements)(Settlements)
(Settlements)
Net Transfers
Net Transfers Net Transfers
Net Transfers
Into/(Out of)
Into/(Out of) Into/(Out of)
Into/(Out of)
Level 3
Level 3Level 3
Level 3
Fair Value at
Fair Value at Fair Value at
Fair Value at
December 31,
December 31, December 31,
December 31,
2009
20092009
2009
A
AAAsset Category
sset Categorysset Category
sset Category
Equity
EquityEquity
Equity
U.S. companies
................................
$ 1 $ — $ — $ (1) $ — $ —
International companies
................................
10 6 (1) 2 4 21
Total equity ................................
................................
11 6 (1) 1 4 21
Fixed Income
Fixed IncomeFixed Income
Fixed Income
Government – non-U.S.
................................
152 10 3 (43) (45) 77
Corporate bonds
Investment grade
................................
80 1 4 (14) (43) 28
High yield................................
................................
12 2 1 2 2 19
Other credit................................
................................
5 1 — (2) 3 7
Mortgage-backed and other
asset-backed ................................
................................
38 5 1 (8) 7 43
Derivative financial
instruments ................................
................................
16 (3) — (11) — 2
Total fixed income
................................
303 16 9 (76) (76) 176
Alternative
AlternativeAlternative
Alternatives
sss
Private equity ................................
................................
— — — 4 — 4
Hedge funds ................................
................................
3 18 — 223 — 244
Real estate................................
................................
— — — — — —
Total alternatives
................................
3 18 — 227 — 248
Other *................................
................................
3,638 351 — — — 3,989
Total Level 3 fair value
................................
$ 3,955 $ 391 $ 8 $ 152 $ (72) $ 4,434
_______
* Primarily Ford-Werke plan assets (insurance contract valued at $3,480 million).
NOTE 19. DEBT AND COMMITMENTS
Our debt consists of short-term and long-term unsecured debt securities, convertible debt securities, and unsecured
and secured borrowings from banks and other lenders. Debt issuances are placed directly by us or through securities
dealers or underwriters and are held by institutional and retail investors. In addition, Ford Credit sponsors securitization
programs that provide short-term and long-term asset-backed financing through institutional investors in the U.S. and
international capital markets.
Debt is recorded on our balance sheet at par value adjusted for unamortized discount or premium (in addition to
adjustments related to debt in designated fair value hedge relationships; see Note 26 for policy detail). Discounts,
premiums, and costs directly related to the issuance of debt generally are capitalized and amortized over the life of the
debt and are recorded in Interest expense using the interest method. Gains and losses on the extinguishment of debt are
recorded in Automotive interest income and other non-operating income/(expense), net and Financial Services other
income/(loss), net.
Amounts borrowed and repaid are reported in our Statement of Cash Flows as Cash flows from financing activities of
continuing operations. Interest, fees and deferred charges paid in excess of the amount borrowed are reported as Cash
flows from operating activities of continuing operations.
Although we have not elected to mark any of our debt to fair value through earnings, we estimate its fair value for
disclosures. The fair value of debt is estimated based on quoted market prices, current market rates for similar debt with
approximately the same remaining maturities, or discounted cash flow models utilizing current market rates.