XML 33 R32.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Held-for-Sale Operations (Notes)
12 Months Ended
Dec. 31, 2019
Held-for-Sale Operations [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] HELD-FOR-SALE OPERATIONS

Automotive Segment

In the third quarter of 2019, we committed to a plan to sell specific net assets in our India Automotive operations. We entered into a definitive agreement to form a joint venture with Mahindra & Mahindra Limited (“Mahindra”), with Mahindra owning a 51% controlling stake and Ford owning a 49% stake. Under the terms of the transaction, which is expected to close mid-2020, we will sell certain India Automotive operations to the joint venture. Accordingly, we have reported the assets and liabilities of these operations as held for sale and ceased depreciation and amortization of those assets.

The assets and liabilities of our India Automotive operations classified as held for sale for the year ended December 31 were as follows (in millions):
 
 
2019
Assets
 
 
Trade and other receivables, net
 
$
269

Inventories
 
208

Other assets, current
 
147

Net property
 
279

Other assets, non-current
 
10

Total assets of held-for-sale operations
 
913

Less: Intercompany asset balances
 
(228
)
Automotive segment total assets of held-for-sale operations (a)
 
$
685

 
 
 
Liabilities
 
 
Payables
 
$
461

Other liabilities and deferred revenue, current
 
71

Automotive debt payable within one year
 
90

Other liabilities and deferred revenue, non-current
 
28

Total liabilities of held-for-sale operations
 
650

Less: Intercompany liability balances
 
(169
)
Automotive segment total liabilities of held-for-sale operations (a)
 
$
481

__________
(a)
As of December 31, 2019, intercompany items and transactions have been eliminated on the consolidated balance sheet. Upon closing, the buyer will assume the intercompany assets and liabilities. Accordingly, we have presented those balances in the table for informational purposes.
NOTE 24. HELD-FOR-SALE OPERATIONS (Continued)

We recognized a pre-tax impairment charge of $804 million reported in Cost of sales in 2019 to adjust the carrying value of the held-for-sale assets to fair value less cost to sell. The value is measured on a nonrecurring basis and categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach, estimated based on expected proceeds to be received, which we conclude is most representative of the value of the assets given the current market conditions, the characteristics of viable market participants, and the pending sales transaction. The transaction is subject to regulatory approvals and satisfaction of other closing conditions that may impact the final proceeds received.

Ford Credit Segment

In the fourth quarter of 2019, Ford Credit committed to a plan to sell its operations in Forso, a wholly owned subsidiary of Ford Credit, which provides retail and dealer financing in Denmark, Finland, Norway, and Sweden. Ford Credit expects to complete the sale of Forso in the first quarter of 2020.

The assets and liabilities of the Forso operations classified as held for sale for the year ended December 31 were as follows (in millions):
 
 
2019
Assets
 
 
Cash and cash equivalents
 
$
61

Ford Credit finance receivables, net, current
 
516

Trade and other receivables, net
 
8

Other assets, current
 
106

Ford Credit finance receivables, net, non-current
 
715

Net property
 
2

Deferred income taxes
 
9

Other assets, non-current
 
1

Total assets of held-for-sale operations
 
1,418

Less: Intercompany asset balances
 
(2
)
Ford Credit segment total assets of held-for-sale operations (a)
 
$
1,416

 
 
 
Liabilities
 
 
Payables
 
$
34

Other liabilities and deferred revenue, current
 
8

Ford Credit long-term debt
 
1,254

Deferred income taxes
 
23

Total liabilities of held-for-sale operations
 
1,319

Less: Intercompany liability balances
 
(1,274
)
Ford Credit segment total liabilities of held-for-sale operations (a)
 
$
45

__________
(a)
As of December 31, 2019, intercompany items and transactions have been eliminated on the consolidated balance sheet. Upon closing, the buyer will assume the intercompany assets and liabilities. Accordingly, we have presented those balances in the table for informational purposes.

Ford Credit recognized a pre-tax fair value impairment charge of $20 million, reported in Other income/(loss), net, as a result of the pending sale. The fair value is measured on a non-recurring basis and categorized within Level 3 of the fair value hierarchy. We determined fair value using a market approach, estimated based on our expected proceeds to be received, which we conclude is most representative of the value of the assets.