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84 FORD MOTOR COMPANY
NOTES TO FINANCIAL STATEMENTS
NOTE 12. DEBT AND COMMITMENTS
Automotive and Financial Services debt as of December 31 was as follows (in millions):
Automotive Financial Services
Weighted Weighted
Average Rate a/ Amount Average Rate a/ Amount
2003 2002 2003 2002 2003 2002 2003 2002
Debt payable within one year
Short-term $ 608 $ 432 $ 1,238 $ 1,083
Commercial paper --17,295 9,663
Other short-term --9,234 7,534
Total short-term debt 5.3% 6.8% 608 432 2.1% 4.3% 27,767 18,280
Long-term payable within one year
Senior indebtedness 510 119 30,480 23,249
Subordinated indebtedness 9.0% -688 -----
Total debt payable within one year 1,806 551 58,247 41,529
Long-term debt
Senior indebtedness
Notes and bank debt 7.0% 7.6% 13,832 13,607 4.3% 4.8% 99,987 105,770
Unamortized discount --(66) (88)
Total senior indebtedness 13,832 13,607 99,921 105,682
Subordinated indebtedness 6.5% -5,155 -9.4% 9.4% 843 843
Total long-term debt 18,987 13,607 100,764 106,525
Total debt $ 20,793 $ 14,158 $ 159,011 $ 148,054
Fair value b/ $ 19,847 $ 12,516 $ 162,635 $ 151,576
Maturity
Average
2004 2005 2006 2007 2008 Thereafter (Years)
Long-term debt maturities
Automotive $ 1,198 $ 434 $ 459 $ 226 $ 363 $ 17,505 26
Financial Services 30,480 30,987 20,487 11,843 6,266 31,181 3
a/ Includes the effect of interest rate swaps.
b/ Based on quoted market prices or current rates for similar debt with the same remaining maturities.
SUBORDINATED INDEBTEDNESS
At December 31, 2003, Ford Motor Company Capital Trust, a subsidiary trust (“Trust I”), had outstanding 9% Trust Originated
Preferred Securities with an aggregate liquidation preference of $632 million (the “Preferred Securities”). The sole assets of the
Trust were $651 million aggregate principal amount of Ford Motor Company 9% Junior Subordinated Debentures due December
2025 (the “Debentures”). On January 2, 2004, we redeemed the Debentures, which reduced our subordinated debt included in
Debt payable within one year by $688 million. The redemption of the Debentures resulted in the simultaneous mandatory
redemption by Trust I of the Preferred Securities at $25 per share plus accrued and unpaid distributions.
Ford Motor Company Capital Trust II, a subsidiary trust (“Trust II”), has outstanding 6.50% Cumulative Convertible Trust Preferred
Securities with an aggregate liquidation preference of $5 billion (the “Trust II Preferred Securities”). The sole assets of Trust II are
$5,155 million principal amount of 6.50% Junior Subordinated Debentures due 2032 of Ford Motor Company (the “Subordinated
Debentures”). At our option, we may redeem the Subordinated Debentures, in whole or in part, on or after January 15, 2007. To
the extent we redeem the Subordinated Debentures or upon the maturity of the Subordinated Debentures, Trust II is required to
redeem the Trust II Preferred Securities at $50 per share plus accrued and unpaid distributions. We guarantee the payment of all
distribution and other payments of the Trust II Preferred Securities to the extent not paid by Trust II, but only if and to the extent
we have made a payment of interest or principal on the Subordinated Debentures.
CREDIT FACILITIES *
AUTOMOTIVE SECTOR
At December 31, 2003, the Automotive sector had $7.0 billion of contractually committed credit agreements with various banks
of which $6.9 billion were available for use. Ninety-two percent of the total facilities are committed through June 30, 2008. Of
the $7.0 billion, $6.8 billion constitute global credit facilities and may be used, at Ford’s option, by any of its direct or indirect
majority-owned subsidiaries on a guaranteed basis. Ford also has the ability to transfer, on a non-guaranteed basis, $2.5 billion
of such global credit facilities to Ford Credit and $543 million to FCE Bank plc. (“FCE”), Ford Credit’s European operation. All of
the global credit facilities are free of material adverse change clauses and restrictive financial covenants (for example, debt-to-
equity limitations, minimum net worth requirements and credit rating triggers that would limit our ability to borrow).
* Credit facilities of our Variable Interest Entities are excluded as we do not control their use.
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