Ford 2010 Annual Report Download - page 163

Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 161
NOTE 24. HELD-FOR-SALE OPERATIONS, DISCONTINUED OPERATIONS, OTHER DISPOSITIONS, AND
ACQUISITIONS (Continued)
Primus Leasing Company Limited ("Primus Thailand"). In March 2009, Ford Credit completed the sale of Primus
Thailand, its operation in Thailand that offered automotive retail and wholesale financing of Ford, Mazda and Volvo
vehicles. As a result of the sale, we received $165 million in proceeds and recognized a de minimis pre-tax gain in
Financial Services other income/(loss), net.
Discontinued Operations
Triad Financial Corporation ("Triad"). In 2005, Ford Credit completed the sale of Triad. Ford Credit received
additional proceeds pursuant to a contractual agreement entered into at the closing of the sale, causing us to recognize
an after-tax gain of $2 million and $9 million in 2009 and 2008, respectively, in Income/(Loss) from discontinued
operations.
Other Dispositions
Nordic Operations. In 2008, Ford Credit completed the creation of a joint venture finance company and transferred the
majority of its business and assets from Denmark, Finland, Norway, and Sweden into the joint venture. The joint venture
will support the sale of Ford vehicles in these markets. As a result of the sale, we reduced Finance receivables, net by
$1.7 billion, and recognized a pre-tax gain of $85 million (net of transaction costs and including $35 million of foreign
currency translation adjustments) in Financial Services other income/(loss), net. Ford Credit reports its ownership interest
in the joint venture as an equity method investment.
PRIMUS Financial Services Inc. ("PRIMUS Japan"). In 2008, Ford Credit completed the sale of 96% of its ownership
interest in PRIMUS Japan, its operation in Japan that offered automotive retail and wholesale financing of Ford and
Mazda vehicles. As a result of the sale, we reduced Finance receivables, net by $1.8 billion, reduced Debt by
$252 million, and recognized a pre-tax gain of $22 million (net of transaction costs and including $28 million of foreign
currency translation adjustments) in Financial Services other income/(loss), net. Ford Credit reports its remaining
ownership interest as a cost method investment.
Primus Finance and Leasing, Inc. ("Primus Philippines"). In 2008, Ford Credit completed the sale of its 60%
ownership interest in Primus Philippines, its operation in the Philippines that offered automotive retail and wholesale
financing of Ford and Mazda vehicles. Ford Credit also completed the sale of its 40% ownership interest in PFL Holdings,
Inc., a holding company in the Philippines that owned the remaining 40% ownership interest in Primus Philippines. As a
result of the sale, we recognized a pre-tax gain of $5 million (net of transaction costs and including $1 million of foreign
currency translation adjustments) in Financial Services other income/(loss), net.
NOTE 25. CAPITAL STOCK AND AMOUNTS PER SHARE
Capital Stock. All general voting power is vested in the holders of Common Stock and Class B Stock. Holders of our
Common Stock have 60% of the general voting power and holders of our Class B Stock are entitled to such number of
votes per share as will give them the remaining 40%. Shares of Common Stock and Class B Stock share equally in
dividends when and as paid, with stock dividends payable in shares of stock of the class held. As discussed in Note 19,
we are restricted in our ability to pay dividends (other than dividends payable in stock) under the terms of the amended
Credit Agreement.
If liquidated, each share of Common Stock will be entitled to the first $0.50 available for distribution to holders of
Common Stock and Class B Stock, each share of Class B Stock will be entitled to the next $1.00 so available, each share
of Common Stock will be entitled to the next $0.50 so available and each share of Common and Class B Stock will be
entitled to an equal amount thereafter.