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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 83
NOTE 1. PRESENTATION (Continued)
During 2009, the Financial Services sector acquired $2.2 billion principal amount of Automotive secured term loan and
$3.4 billion principal amount of Automotive unsecured debt securities for a total of $2.2 billion of cash. The debt was then
distributed to Ford Holdings, whereupon it was forgiven, or used in satisfaction of Ford Credit's tax liabilities owed to us
under our tax-sharing agreement. The debt acquired is no longer outstanding. We recorded gains on the extinguishment of
debt (net of unamortized discounts, premiums and fees, and transaction costs) of $3.3 billion in Automotive interest income
and other non-operating income/(expense), net. See Note 19 for further discussion of these transactions. See the table
below for the reconciliation between total sector and consolidated cash flows.
Sector to Consolidated Cash Flow Reconciliation. We present certain cash flows from wholesale receivables, finance
receivables and debt reduction actions differently on our sector and consolidated statements of cash flows. The
reconciliation between total sector and consolidated cash flows is as follows (in millions):
2010
20102010
2010
2009
20092009
2009
2008
20082008
2008
Automotive cash flows from operating activities of continuing operations ................................
................................
$ 6,363 $ 2,874 $ (12,606)
Financial Services cash flows from operating activities of continuing operations
................................
3,798 5,805 9,189
Total sector cash flows from operating activities of continuing operations
................................
10,161 8,679 (3,417)
Reclassifications from investing to operating cash flows:
Wholesale receivables (a)................................................................................................
................................
(46) 5,542 2,736
Finance receivables (b) ................................................................................................
................................
62 129 418
Reclassifications from operating to financing cash flows:
Payments on notes to the UAW VEBA Trust (Note 19) (c)................................
................................
1,300 — —
Financial Services sector second quarter 2009 acquisition of Automotive sector debt (d)
................................
— 1,127 —
Consolidated cash flows from operating activities of continuing operations
................................
$ 11,477 $ 15,477 $ (263)
Automotive cash flows from investing activities of continuing operations ................................
................................
$ 577 $ (10,958) $ (1,483)
Financial Services cash flows from investing activities of continuing operations
................................
9,256 22,078 525
Total sector cash flows from investing activities of continuing operations
................................
9,833 11,120 (958)
Reclassifications from investing to operating cash flows:
Wholesale receivables (a)................................................................................................
................................
46 (5,542) (2,736)
Finance receivables (b) ................................................................................................
................................
(62) (129) (418)
Reclassifications from investing to financing cash flows:
Automotive sector acquisition of Financial Services sector debt (e)................................
................................
(454) 155 424
Financial Services sector first quarter 2009 acquisition of Automotive sector debt (d)
................................
— 1,091 —
Elimination of investing activity to/(from) Financial Services in consolidation (2,455) (76) 749
Consolidated cash flows from investing activities of continuing operations
................................
$ 6,908 $ 6,619 $ (2,939)
Automotive cash flows from financing activities of continuing operations................................
................................
$ (10,476) $ 11,551 $ 149
Financial Services cash flows from financing activities of continuing operations
................................
(15,554) (32,084) (8,148)
Total sector cash flows from financing activities of continuing operations
................................
(26,030) (20,533) (7,999)
Reclassifications from investing to financing cash flows:
Automotive sector acquisition of Financial Services sector debt (e)................................
................................
454 (155) (424)
Financial Services sector first quarter 2009 acquisition of Automotive sector debt (d)
................................
— (1,091) —
Reclassifications from operating to financing cash flows:
Financial Services sector second quarter 2009 acquisition of Automotive sector debt (d)
................................
— (1,127) —
Payments on notes to the UAW VEBA Trust (Note 19) (c)................................
................................
(1,300) — —
Elimination of financing activity to/(from) Financial Services in consolidation 2,455 76 (749)
Consolidated cash flows from financing activities of continuing operations
................................
$ (24,421) $ (22,830) $ (9,172)
(a) In addition to the cash flow from vehicles sold by us, the cash flow from wholesale finance receivables (being reclassified from investing to
operating) includes financing by Ford Credit of used and non-Ford vehicles. 100% of cash flows from wholesale finance receivables have been
reclassified for consolidated presentation as the portion of these cash flows from used and non-Ford vehicles is impracticable to separate.
(b) Includes cash flows of finance receivables purchased/collected from certain divisions and subsidiaries of the Automotive sector.
(c) See "Notes Due to UAW VEBA Trust" section of Note 19 for further discussion of this transaction. Cash outflows related to this transaction are
reported as financing activities on the consolidated statement of cash flows and operating activities on the sector statement of cash flows.
(d) See "Debt Repurchases" within the "Public Unsecured Debt Securities" section and "2009 Secured Term Loan Actions" within the "Secured Term
Loan and Revolving Loan" section of Note 19 for further discussion of these transactions. Cash outflows related to these transactions are reported
as financing activities on the consolidated statement of cash flows and either investing or operating activities on the sector statement of cash flows.
(e) See "Debt Reduction Actions" above for further discussion. Cash flows related to these transactions are reported as financing activities on the
consolidated statement of cash flows and investing activities on the sector statement of cash flows.