Ford 2002 Annual Report Download - page 44

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40
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
AUTOMOTIVE SECTOR
For the Automotive sector, liquidity and capital resources include gross cash balances, cash generated from operations, our
ability to raise funds in capital markets and committed credit lines.
Gross Cash–Automotive gross cash includes cash and marketable securities and assets contained in a Voluntary Employee
Beneficiary Association (“VEBA”) trust, which are financial assets available to fund certain future employee benefit obligations
in the near term, as summarized below (in billions):
December 31,
2002 2001 2000
Cash and cash equivalents $ 5.2 $ 4.1 $ 3.4
Marketable securities 17.4 10.9 13.1
VEBA 2.7 2.7 3.7
Gross cash $ 25.3 $ 17.7 $ 20.2
In managing our business, we classify changes in gross cash in three categories: operating (including capital expenditures and
capital transactions with the Financial Services sector), acquisitions and divestitures, and financing. Changes for the last three
years are summarized below (in billions):
December 31,
2002 2001 2000
Gross cash at end of period $ 25.3 $ 17.7 $ 20.2
Gross cash at beginning of period 17.7 20.2 25.4
Total change in gross cash $7.6 $ (2.5) $ (5.2)
Operating related cash flows
Automotive net income/(loss) $ (2.0) $ (6.3) $ 1.7
Non-cash, one-time charges 1.7 4.3 3.5
Depreciation and special tools amortization 4.9 5.0 5.1
Changes in receivables, inventory and trade payables (1.8) 4.4 (0.5)
Other – primarily expense and payment timing differences 3.8 (0.1) 3.7
Capital transactions with Financial Services sector* 0.4 0.4 0.7
Capital expenditures (6.8) (6.3) (7.4)
Total operating related cash flows before tax refunds 0.2 1.4 6.8
Tax refunds 2.6 --
Total operating related cash flows 2.8 1.4 6.8
Divestitures and asset sales 0.9 0.4 -
Acquisitions and capital contributions (0.3) (2.7) (2.7)
Financing related cash flows
Convertible trust preferred securities 4.9 --
Value Enhancement Plan -- (5.6)
Dividends to shareholders (0.7) (1.9) (2.8)
Net issuance/(purchase) of stock 0.1 (1.4) (1.2)
Changes in total Automotive sector debt (0.1) 1.7 0.3
Total financing related cash flows 4.2 (1.6) (9.3)
Total change in gross cash $ 7.6 $ (2.5) $ (5.2)
* Includes the net of capital contributions, dividends, loans and loan repayments.