Professional Documents
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Question
Rob Vallejo
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We monitor our asset groups for conditions that may indicate a potential impairment of long-lived
assets. These conditions include current-period operating losses combined with a history of losses
and a projection of continuing losses, and signicant negative industry or economic trends. When
these conditions exist, we test for impairment. An impairment charge is recognized for the amount
by which the carrying value of the asset group exceeds its estimated fair value. Based upon the
nancial impact of rapidly-changing U.S. market conditions during the second quarter of 2008, we
projected a decline in net cash ows for the Ford North America segment. As a result, in the second
quarter of 2008 we tested the long-lived assets for impairment and recorded in Automotive cost of
sales a pretax charge of $5.3 billion.
Question
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Question
Kevin Burns
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