Ford 2010 Annual Report Download - page 161

Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 159
NOTE 24. HELD-FOR-SALE OPERATIONS, DISCONTINUED OPERATIONS, OTHER DISPOSITIONS, AND
ACQUISITIONS (Continued)
On August 2, 2010, we completed the sale of Volvo and related assets. As agreed, Volvo will retain or acquire certain
assets presently used by Volvo, consisting principally of ownership of, or licenses to use, certain intellectual property
("Related Assets").
The total purchase price for Volvo and the Related Assets set forth in the agreement was $1.8 billion, of which
$200 million was to be paid in the form of a note and the balance to be paid in cash, with the cash portion subject to
customary purchase price adjustments. In accordance with the terms of the agreement, at closing, we received
$1.3 billion in cash, recorded a note receivable in the amount of $200 million, recorded a $126 million receivable for
additional purchase price adjustments (relating to our best estimate of additional proceeds, pension liabilities, debt, cash
and working capital balances) and recognized a pre-tax loss of $23 million reported in Automotive interest income and
other non-operating income/(expense), net. This loss includes the recognition of $1.5 billion of accumulated other
comprehensive income and $38 million of related separation costs. We expect to finalize and settle the final true-up of the
purchase price adjustments in the first quarter of 2011.
Jaguar Land Rover. In 2008, we sold our Jaguar Land Rover operations. We recorded a pre-tax impairment charge
of $421 million reported in Automotive cost of sales and a pre-tax loss of $136 million reported in Automotive interest
income and other non-operating income/(expense), net.
As part of this transaction, we continue to supply Jaguar Land Rover with powertrains and stampings. We also
provide transitional support, including engineering, and other services. Ford Credit provided financing for Jaguar Land
Rover dealers and customers during a transition period, which varied by market, for up to 12 months.
Automotive Components Holdings, LLC ("ACH") – Milan, Michigan. In 2008, we classified the ACH Milan plant, which
produces fuel tanks and bumper fascias, as held for sale. At that time, a pre-tax impairment charge of $18 million was
recorded, which represented the excess of net book value of the held-for-sale assets over the expected proceeds. During
the third quarter of 2008, deteriorating domestic economic and industry conditions significantly reduced the probability of
this sale, and the Milan plant subsequently was reclassified as held and used. The pre-tax impairment charge continues
to be reported in Automotive cost of sales.
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. For 2010 and 2008 there was no operating income, or gains or losses related to discontinued
operations.
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