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Internet Assignment I Ford Motor Company

Questions: 1. Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, summarize their significance to both the balance sheet and income statement 2. Does Ford report any investments carried under the equity method? If so, summarize their significance to both the balance sheet and income statement. What additional disclosures, if any, are made concerning equity method investments? 3. Did Ford realized any gain or losses from security sales during 2012? 4. Has Ford tested for goodwill impairment during 2012? Did for experience an impairment during 2012? Answers: 1. Ford report any investment as available-for-sale securities, they value them at fair value. That means their value will be affected year by year by it. To determining fair value, they use various valuation techniques, and observable inputs are prioritized. 2. They use the equity method accounting for their investments in entities which they do not have control, but over the who’s operating a financial policy they are able to do exercise significant influence. In the ordinary course of business, they sell or buy various products and service including vehicles parts and components to or from their equity method. In addition, they must recognize royalty income. 3. Yes, Ford recorded gains for 2012 for $58 million. Note 6. Marketable and other securities states that “Realized and unrealized gains and losses and interest income are recorded in automotive interest income and other income (expense), net and financial service other income (loss), net. Realized gains and losses are measured using specific identification method. 4. The intangible assets of Ford are comprised primary of license and advertising agreements, land rights, patents, customer contracts and technology. Their indefinitelived intangibles have been tested for impairment in 2013 and no impairment was required.

Universidad de Puerto Rico Recinto de Cayey

Internet Assignment III

Richmar Espada Cuevas

13 de diciembre de 2018 Profa. Lolita Vargas Internet Assignment III Delta Airlines and Northwest Airlines Instruction: Summarize the disclosures made concerning the merger with Northwest Airlines. Answer: 

The announcement of the intention to merge with Northwest established a stock exchange ratio based on the relative valuation of Delta and Northwest. They determined goodwill was impaired and recorded a non-cash charge of $10.2 billion on a combined basis. Delta also recorded a non-cash charge of $955 million on a combined basis to reduce the carrying value of certain intangible assets based on their revised estimated fair values.

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During 2009, we recorded a $288 million charge for merger-related items associated with integrating the operations of Northwest into Delta, including cost related to information technology, employee relocation and training, and re-branding od aircraft.

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Delta has achieved $200 million on synergy benefits in the first half of 2009 from its merge with Northwest and expect to generate at least $500 millions total synergies in 2009.

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Synergies achieved year to date have improved revenue from increase market share. Delta’s affinity card agreement and alignment of frequent flyer programs.

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The cost has been reduced through streamlined overhead facilities and technology elimination of dedicated freighter flying and supply chains savings.

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Delta’s operating revenue on a GAAP basis grew 27% to 57 billions in June 2009 quarter compared to the prior year period as a result of its merge with Northwest Airlines....