Ford 2002 Annual Report Download - page 74

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NOTE 4. MARKETABLE AND OTHER SECURITIES
Trading securities are recorded at fair value with unrealized gains and losses included in income. Available-for-sale securities
are recorded at fair value with net unrealized holding gains and losses reported, net of tax, in other comprehensive income.
Held-to-maturity securities are recorded at amortized cost. Realized gains and losses are accounted for using the specific
identification method.
The fair value of substantially all securities is determined by quoted market prices. The estimated fair value of securities
for which there are no quoted market prices is based on similar types of securities that are traded in the market. Equity
securities that do not have readily determinable fair values are recorded at cost. Book value approximates fair value for
all securities.
Expected maturities of debt securities may differ from contractual maturities because borrowers may have the right to call
or prepay obligations with or without penalty.
On October 2, 2002, we purchased ¥ 20 billion (equivalent of U.S. $164 million) aggregate principal amount of convertible
bonds issued by Mazda Motor Corporation. The bonds are accounted for as an available-for-sale security and included
in Equity in net assets of affiliated companies. As of December 31, 2002, these bonds had a fair value of $161 million.
Investments in securities at December 31 were as follows (in millions):
2002 2001
Amortized Unrealized Book/Fair Amortized Unrealized Book/Fair
Cost Gains Losses Value Cost Gains Losses Value
Automotive Sector
Trading $ 15,725 $ 145 $ 1 $ 15,869 $ 9,374 $ 32 $ 30 $ 9,376
Available-for-sale
Corporate debt 1,576 21 2 1,595 1,557 20 4 1,573
Total $ 17,301 $ 166 $ 3 $ 17,464 $ 10,931 $ 52 $ 34 $ 10,949
Financial Services Sector
Trading $ 143 $ - $ - $ 143 $95$ -$-$95
Available-for-sale
U.S. government and agency 163 9 - 172 78 2 1 79
Municipal 1-- 1 --- -
Government — non U.S. 20 - - 20 18 1 - 19
Corporate debt 172 10 - 182 163 6 1 168
Mortgage-backed 215 9 - 224 207 4 2 209
Equity 46 20 7 59 29 27 4 52
Total 617 48 7 658 495 40 8 527
Held-to-maturity
U.S. government 6-- 6 6-- 6
Total $ 766 $ 48 $ 7 $ 807 $ 596 $ 40 $ 8 $ 628
The proceeds and gains/(losses) from sales of available-for-sale securities were as follows (in millions):
Proceeds Gains/(Losses)
2002 2001 2002 2001 2000
Automotive $ 3,445 $ 12,489 $24 $47 $ 2
Financial Services 479 745 611 3
70
NOTES TO FINANCIAL STATEMENTS
Ford Coleção
Novo Fiesta
(Brazil)