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Notes to the Financial Statements
90 Ford Motor Company | 2007 Annual Report
NOTE 18. EMPLOYEE SEPARATION ACTIONS AND EXIT AND DISPOSAL ACTIVITIES (Continued)
Other Employee Separation Actions. Most salaried employee separations within the United States were completed by
the end of the first quarter of 2007, and were achieved through early retirements, voluntary separations, and involuntary
separations where necessary. These actions resulted in pre-tax charges of $154 million and $22 million in 2007 and 2006,
respectively, reported in Automotive cost of sales and Selling, administrative and other expenses.
The following table shows pre-tax charges for other hourly and salaried employee separation actions for the full year
2007 and 2006 (in millions). These charges are reported in Automotive cost of sales and Selling, administrative and other
expenses.
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D*4N!\:4*I,<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< >&! A#@!
K9] <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< >>! A%#!
D*4N!9057!K7)535)!7(N!9345)7 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< &! %A!
The charges above exclude costs for pension and OPEB. See Note 24 for employee separation costs related to pension
and OPEB.
Financial Services Sector
Business Restructuring - Germany
In 2006, FCE announced a plan to restructure its business in Germany that supports the sales activities of automotive
financial services of Ford, Jaguar, Land Rover and Mazda vehicles. The plan included the consolidation of branches into
district offices and reduced ongoing costs. We recognized pre-tax charges of $30 million in 2006. In 2007, we released
$12 million of the reserve related to lower-than-expected separations and paid out $14 million. The costs associated with
the business restructuring were charged to Selling, administrative and other expenses. The restructuring was completed in
2007.
The table below summarizes the activity in the reserve as of December 31, 2007 and 2006 (in millions):
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.Z,E,70,N1-9))4:,N!N:45(O!I,45*N<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< .A"1! B#!
K75N!N:45(O!I,45*N<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< .A>1! Q!
D*4,5O(!):44,()J!647(0E765*(<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< !!!!!!!!!!!!!!!!"! !!!!!!!!!!!!!!!!A!
/5725E56J!76!,(N!*3!I,45*N <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< =!!!!!!!!!!!!!!$! =!!!!!!!!!!!!BA!
Separation Actions
In 2007, we recognized pre-tax charges of $45 million in Selling, administrative and other expenses for employee
separation actions in the United States and Canada. These actions were associated with Ford Credit's North American
business transformation initiative (i.e., the consolidation of its North American branches into its seven existing business
centers).
These charges exclude costs for pension and OPEB. See Note 24 for employee separation costs related to pension
and OPEB.