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Notes to the Financial Statements
94 Ford Motor Company | 2010 Annual Report
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
Reconciliation of Changes in Level 3 Balances
The following tables summarize the changes in Level 3 items measured at fair value on a recurring basis on our
balance sheet for the periods ending December 31 (in millions):
2010
20102010
2010
Fair Value at
Fair Value at Fair Value at
Fair Value at
Dece
DeceDece
December 31,
mber 31, mber 31,
mber 31,
2009
20092009
2009
Total
Total Total
Total
Realized/
Realized/ Realized/
Realized/
Unrealized
Unrealized Unrealized
Unrealized
Gains/
Gains/ Gains/
Gains/
(Losses)
(Losses)(Losses)
(Losses)
Net
Net Net
Net
Purchases/
Purchases/ Purchases/
Purchases/
(Settlements)
(Settlements) (Settlements)
(Settlements)
(a)
(a) (a)
(a)
Net
Net Net
Net
Transfers
Transfers Transfers
Transfers
Into/(Out of)
Into/(Out of)Into/(Out of)
Into/(Out of)
Level 3
Level 3 Level 3
Level 3 (b)
(b) (b)
(b)
Fair Value at
Fair Value at Fair Value at
Fair Value at
December 31
December 31December 31
December 31,
, ,
,
2010
20102010
2010
Change In
Change In Change In
Change In
Unrealized
Unrealized Unrealized
Unrealized
Gains/
Gains/ Gains/
Gains/
(Losses) on
(Losses) on (Losses) on
(Losses) on
Instruments
Instruments Instruments
Instruments
Still Held
Still Held Still Held
Still Held
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
Marketable securities
Foreign government agencies/
Corporate debt................................
................................
$ 8 $ — $ 3 $ (10) $ 1 $ —
Mortgage-backed and other asset-
backed 17 (1) (16) — — —
Government – non-U.S. — — 1 — 1 —
Total marketable securities
................................
25 (1) (12) (10) 2 —
Derivative financial instruments, net
................................
9 41 (12) — 38 29
Total Level 3 fair value
................................
$ 34 $ 40 $ (24) $ (10) $ 40 $ 29
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
Marketable securities - Foreign
government agencies/ Corporate debt
................................
$ 4 $ (4) $ 11 $ (10) $ 1 $ —
Derivative financial instruments, net
................................
(155) (97) 164 (1) (89) 64
Retained interest in securitized assets
................................
26 (1) (25) — — —
Total Level 3 fair value
................................
$ (125) $ (102) $ 150 $ (11) $ (88) $ 64
(a) Includes option premiums (paid)/received on options traded during the period.
(b) Represents transfers out due to the availability of observable data for $20 million of marketable securities due to increase in market activity for
these securities and $1 million due to shorter duration of derivative financial instruments. Transfers in and transfers out represent the value at
the end of the reporting period.
2009
20092009
2009
Fair Value at
Fair Value at Fair Value at
Fair Value at
December 31,
December 31, December 31,
December 31,
2008
20082008
2008
Total
Total Total
Total
Realized/
Realized/ Realized/
Realized/
Unrealized
Unrealized Unrealized
Unrealized
Gains/
Gains/ Gains/
Gains/
(Losses)
(Losses)(Losses)
(Losses)
Net
Net Net
Net
Purchases/
Purchases/ Purchases/
Purchases/
(Settlements)
(Settlements) (Settlements)
(Settlements)
(a
(a(a
(a)
) )
)
Net
Net Net
Net
Transfers
Transfers Transfers
Transfers
Into/(Out of)
Into/(Out of)Into/(Out of)
Into/(Out of)
Level 3 (b)
Level 3 (b) Level 3 (b)
Level 3 (b)
Fair Value at
Fair Value at Fair Value at
Fair Value at
December 31,
December 31,December 31,
December 31,
2009
20092009
2009
Change In
Change In Change In
Change In
Unrealized
Unrealized Unrealized
Unrealized
Gains/
Gains/ Gains/
Gains/
(Losses) on
(Losses) on (Losses) on
(Losses) on
Instruments
Instruments Instruments
Instruments
Still Held
Still Held Still Held
Still Held
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
Marketable securities
Foreign government agencies/
Corporate debt ................................
................................
$ 26 $ (19) $ 1 $ — $ 8 $ —
Mortgage-backed and other asset-
backed................................
................................
123 — (73) (33) 17 2
Equity................................
................................
1 — — (1) — —
Total marketable securities
................................
150 (19) (72) (34) 25 2
Derivative financial instruments, net
................................
(32) (5) 46 — 9 5
Total Level 3 fair value
................................
$ 118 $ (24) $ (26) $ (34) $ 34 $ 7
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
Marketable securities - Foreign
government agencies/ Corporate debt
................................
$ 5 $ (1) $ — $ — $ 4 $ (1)
Derivative financial instruments, net
................................
(74) (87) 6 — (155) (70)
Retained interest in securitized assets
................................
92 9 (75) — 26 1
Total Level 3 fair value
................................
$ 23 $ (79) $ (69) $ — $ (125) $ (70)
(a) Includes option premiums (paid)/received on options traded during the period.
(b) "Transfers Into" represent the value at the end of the reporting period and "Transfers Out of" represent the value at the beginning of the
reporting period.