Ford 2012 Annual Report Download - page 87

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Ford Motor Company | 2012 Annual Report 85
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Information About Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
The following table summarizes significant unobservable inputs and the variability of those inputs to alternate
methodologies for the year ended December 31, 2012 (in millions):
Fair Value
Valuation
Technique
Unobservable
Input
Fair Value
Range
Automotive Sector
Recurring basis
Net commodity contracts $(8) Income
Approach
Forward commodity
prices for certain
commodity types. A
lower forward price
will result in a lower
fair value.
$(7) - $(8)
Financial Services Sector
Nonrecurring basis
Retail receivables
North America $52 Income
Approach
POD percentage $38 - $52
International $26 Income
Approach
ARV percentage $25 - $27
Dealer loans $2 Income
Approach
Estimated fair value $1 - $3
NOTE 5. RESTRICTED CASH
Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual
agreements are recorded in Other assets on our balance sheet.
Our Automotive sector restricted cash balances primarily include cash collateral required to be held against loans from
the European Investment Bank ("EIB"). Additionally, restricted cash includes various escrow agreements related to legal,
insurance, customs, and environmental matters. Our Financial Services sector restricted cash balances primarily include
cash held to meet certain local governmental and regulatory reserve requirements and cash held under the terms of
certain contractual agreements.
Restricted cash does not include required minimum balances or cash securing debt issued through securitization
transactions.
Restricted cash balances were as follows (in millions):
December 31,
2012
December 31,
2011
Automotive sector $ 172 $330
Financial Services sector 172 149
Total Company $ 344 $479
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