Ford 2009 Annual Report Download - page 150

Notes to the Financial Statements
148 Ford Motor Company | 2009 Annual Report
NOTE 24. HELD-FOR-SALE OPERATIONS, DISCONTINUED OPERATIONS, OTHER DISPOSITIONS, AND
ACQUISITIONS (Continued)
Discontinued Operations
Automotive Protection Corporation ("APCO"). In 2007, we completed the sale of APCO and realized a pre-tax gain of
$51 million (net of transaction costs and working capital adjustments), reported in Income/(Loss) from discontinued
operations. In the second quarter of 2009, we received additional proceeds related to the settlement of a state and local
tax matter that was unresolved at the time of sale and recognized an after-tax gain of $3 million in Income/(Loss) from
discontinued operations.
The results of all discontinued Automotive sector operations are as follows (in millions):
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Other Dispositions
Progress Ford Sales Limited ("PFS"). In the second quarter of 2009, PFS was liquidated. As a result, we recognized
in Automotive cost of sales a $281 million foreign exchange translation loss previously deferred in Accumulated other
comprehensive income/(loss).
NuCellSys. In 2009, we reached an agreement with Daimler AG ("Daimler") to sell our entire ownership interest in
NuCellSys to Daimler. NuCellSys was a joint venture created by Ford and Daimler in 2005 for research into and
development and manufacture of fuel cell systems. As a result of the sale, we recognized a loss of $29 million in
Automotive interest income and other non-operating income/(expense), net.
ACH – Glass. In 2008, we completed the sale of the ACH glass business to Zeledyne, LLC ("Zeledyne"). As a result
of this transaction, we recognized a pre-tax loss of $285 million reported in Automotive interest income and other non-
operating income/(expense), net. During the third quarter of 2008, the sale agreement between Ford and Zeledyne was
amended resulting in an additional $19 million pre-tax loss reported in Automotive interest income and other non-
operating income/(expense), net. With this, our pre-tax loss was $304 million.
Ballard Power Systems, Inc. ("Ballard"). In 2008, we reached an agreement with Ballard to exchange our entire
ownership interest of 12.9 million shares of Ballard stock for a 30% equity interest in AFCC along with $22 million in cash.
AFCC is a joint venture between Ford (30%), Daimler (50.1%) and Ballard (19.9%) that was created for the development
of automotive fuel cells. We also have agreed to purchase from Ballard its 19.9% equity interest for $65 million plus
interest within five years. As a result of the exchange, we recognized in Automotive cost of sales a pre-tax loss of
$70 million. Our investment in AFCC is reported in Equity in net assets of affiliated companies.
Thai-Swedish Assembly Group ("TSA"). In 2008, Ford and our subsidiary, Volvo Car Corporation, completed the sale
of TSA to Volvo Holding Sverige, AB (an unrelated company, aka Volvo Truck and Bus (Thailand) Co., Ltd.). Under the
terms of the agreement, we sold $14 million of net assets and received $24 million in gross proceeds. We recognized a
pre-tax gain of $12 million (including $2 million of foreign currency translation adjustments) in Automotive interest income
and other non-operating income/(expense), net.
ACH – El Jarudo. In 2007, we completed the sale of the ACH El Jarudo plant to Cooper-Standard Automotive Inc.
The El Jarudo plant, which produced fuel rails, fuel charging assemblies, and spring lock connectors, was a component of
ACH in Mexico. As a result of the sale, we recognized a de minimis pre-tax loss, reported in Automotive interest income
and other non-operating income/(expense), net.