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Ford Motor Company Annual Report 2005 70 Ford Motor Company Annual Report 2005 71
Notes to the Financial Statements
NOTE 7. SIGNIFICANT UNCONSOLIDATED AFFILIATES
Mazda Motor Corporation ("Mazda") and Blue Diamond Parts, LLC. ("Blue Diamond Parts"), accounted for under the equity
method, are considered significant unconsolidated affiliates.
Mazda-Related Investments. At December 31, 2005, our ownership interest in Mazda was 33.9%. The carrying value of our
investment in Mazda was $928 million and $768 million at December 31, 2005 and 2004, respectively. Included in our investment
of Mazda was $171 million of goodwill. Dividends received from Mazda were $11 million, $8 million and $7 million for the
years ended December 31, 2005, 2004, and 2003, respectively. The market value of our investment in Mazda at
December 31, 2005 was $2.1 billion.
Summarized income statement information from the published Mazdaʼs financial statements for the twelve months ended
September 30, 2005, 2004, and 2003 are as follows (in millions):
2005 2004 2003
Net sales .................................................................................................................................................................................
.
$ 26,555 $ 28,015 $ 20,281
Cost and expenses ..................................................................................................................................................................
.
25,696 27,226 19,740
Income from continuing operations .......................................................................................................................................
.
333 419 368
Net income .............................................................................................................................................................................
.
566 384 250
Included in our Equity in net income/(loss) of affiliated companies was income of $148 million, $108 million and $74 million
in 2005, 2004, and 2003, respectively, representing our share of Mazda's results on a U.S. GAAP basis. There have been no events
at Mazda subsequent to September 30, 2005 that would materially affect our balance sheet or statement of income. Balance sheet
information for Mazda is insignificant to our consolidated balance sheet.
Included in our investment in Mazda are convertible bonds issued by Mazda. The bonds are accounted for as an available-for-
sale security and at December 31, 2005 and 2004, these bonds had a fair value of $52 million and $219 million, respectively. In
the second half of 2005, we converted to equity 82.5% of these.
Blue Diamond Parts, LLC. We have a 50% voting interest in Blue Diamond Parts, LLC. Blue Diamond Parts manages
sourcing, merchandising, and distribution of various replacement parts. The carrying value of our investment in Blue Diamond
Parts was $7 million and $23 million at December 31, 2005 and 2004, respectively. Dividends received from Blue Diamond Parts
were $99 million, $41 million and $31 million for the years ended December 31, 2005, 2004, and 2003, respectively.
Summarized income statement information from Blue Diamond Parts' financial statements for the twelve months ended
December 31, 2005, 2004, and 2003 are as follows (in millions):
2005 2004 2003
Net service revenue ................................................................................................................................................................
.
$ 194 $ 113 $ 93
Net other expenses .................................................................................................................................................................
.
28 20 17
Income from continuing operations .......................................................................................................................................
.
166 93 75
Net income .............................................................................................................................................................................
.
164 91 75
Included in our Equity in net income/(loss) of affiliated companies was income of $83 million, $48 million and $39 million for
the years ended December 31, 2005, 2004 and 2003, respectively. Balance sheet information for Blue Diamond Parts is
insignificant to our consolidated balance sheet.