Ford 2006 Annual Report Download - page 92
Download and view the complete annual report
Please find page 92 of the 2006 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.90
Notes to the Financial Statements
90
NOTE 22. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Continued)
Derivatives not designated as hedging instruments. We elect not to apply hedge accounting to a majority of Ford
Credit's derivatives. In addition, some of Ford Credit's derivatives would not qualify for hedge accounting. We report
changes in the fair value of these derivatives through Financial Services revenues. The earnings impact primarily relates
to interest rate swaps, which are included in evaluating Ford Credit's overall risk management objective, and foreign
currency derivatives, which are offset by the revaluation of foreign denominated debt. The notional amount of derivatives
not designated for hedge accounting was $158.7 billion, $143.7 billion, and $125.7 billion at December 31, 2006, 2005,
and 2004, respectively.
We report the exchange of cash related to all of Ford Credit's derivative transactions, regardless of designation, as
net cash flows from investing activities in our statements of cash flows.
Income Statement Effect of Derivative Instruments
The following table summarizes the estimated pre-tax gains/(losses) for each type of hedge designation described
above for the Automotive and Financial Services sectors, for the years ended December 31 (in millions):
,QFRPH6WDWHPHQW&ODVVLILFDWLRQ
$XWRPRWLYH6HFWRU
&DVKIORZKHGJHV
,QHIIHFWLYHQHVVDQGLPSDFWRIGLVFRQWLQXHGKHGJHV
$XWRPRWLYHFRVWRIVDOHV
1HWLQYHVWPHQWKHGJHV
,QHIIHFWLYHQHVV
$XWRPRWLYHFRVWRIVDOHV
'HULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV
&RPPRGLWLHV
$XWRPRWLYHFRVWRIVDOHV
)RUHLJQFXUUHQF\IRUZDUGFRQWUDFWVD
$XWRPRWLYHFRVWRIVDOHV
2WKHU
$XWRPRWLYHFRVWRIVDOHV$XWRPRWLYH
LQWHUHVWLQFRPHDQGRWKHUQRQRSHUDWLQJ
LQFRPHH[SHQVHQHW
)LQDQFLDO6HUYLFHV6HFWRU
)DLUYDOXHKHGJHV
,QHIIHFWLYHQHVV
)LQDQFLDO6HUYLFHVUHYHQXHV
1HWLQWHUHVWVHWWOHPHQWVDQGDFFUXDOVH[FOXGHGIURP
WKHDVVHVVPHQWRIKHGJHHIIHFWLYHQHVV
,QWHUHVWH[SHQVH
)RUHLJQH[FKDQJHUHYDOXDWLRQDGMXVWPHQWVH[FOXGHG
IURPWKHDVVHVVPHQWRIKHGJHHIIHFWLYHQHVVDE
)LQDQFLDO6HUYLFHVUHYHQXHV
&DVKIORZKHGJHV
,QHIIHFWLYHQHVV
ಧ
)LQDQFLDO6HUYLFHVUHYHQXHV
1HWLQWHUHVWVHWWOHPHQWVDQGDFFUXDOVH[FOXGHGIURP
WKHDVVHVVPHQWRIKHGJHHIIHFWLYHQHVV
ಧ
,QWHUHVWH[SHQVH
1HWLQYHVWPHQWKHGJHV
,QHIIHFWLYHQHVV
ಧ
)LQDQFLDO6HUYLFHVUHYHQXHV
'HULYDWLYHVQRWGHVLJQDWHGDVKHGJLQJLQVWUXPHQWV
,QWHUHVWUDWHVZDSV
)LQDQFLDO6HUYLFHVUHYHQXHV
)RUHLJQFXUUHQF\VZDSVDQGIRUZDUGFRQWUDFWVD
)LQDQFLDO6HUYLFHVUHYHQXHV
2WKHU
ಧ ಧ
)LQDQFLDO6HUYLFHVUHYHQXHV
BBBBBBBBBB
D 7KHVHJDLQVORVVHVUHODWHGWRIRUHLJQFXUUHQF\GHULYDWLYHVDQGZHUHVXEVWDQWLDOO\RIIVHWE\QHWUHYDOXDWLRQLPSDFWVRQIRUHLJQGHQRPLQDWHG
GHEWZKLFKZHUHUHFRUGHGWRWKHVDPHLQFRPHVWDWHPHQWOLQHLWHPDVWKHKHGJHJDLQVORVVHV
E $PRXQWUHSUHVHQWVWKHSRUWLRQRIWKHGHULYDWLYHVIDLUYDOXHDWWULEXWDEOHWRWKHFKDQJHLQIRUHLJQFXUUHQF\H[FKDQJHUDWHV