Ford 2006 Annual Report Download - page 32
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Please find page 32 of the 2006 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Management’s Discussion and Analysis of Financial Condition and Results of Operations
30
Credit Facilities and Committed Liquidity Programs. For additional funding and to maintain liquidity, at
December 31, 2006 Ford Credit and its majority-owned subsidiaries, including FCE Bank plc ("FCE"), had $3.8 billion of
contractually-committed unsecured credit facilities with financial institutions, of which $2.6 billion were available for use. In
addition, at December 31, 2006, banks provided $18.9 billion of contractually-committed liquidity facilities exclusively to
support Ford Credit's two on-balance sheet asset-backed commercial paper programs. Ford Credit also has entered into
agreements with a number of bank-sponsored asset-backed commercial paper conduits ("conduits") and other financial
institutions pursuant to which such parties are contractually committed, at Ford Credit's option, to purchase from Ford Credit
eligible retail or wholesale assets or to make advances under asset-backed securities backed by wholesale assets for
proceeds of up to approximately $29.1 billion. At December 31, 2006, $9.7 billion of these commitments were in use. In
addition, Ford Credit has a multi-year committed liquidity program for the purchase of up to $6 billion of unrated asset-
backed securities that at its option can be supported with various retail, wholesale, or leased assets. Ford Credit's ability to
obtain funding under this program is subject to having a sufficient amount of assets available to issue the securities. For
further discussion of these facilities and programs, see Note 15 of the Notes to the Financial Statements.
Leverage. Ford Credit uses leverage, or the debt-to-equity ratio, to make various business decisions, including
establishing pricing for retail, wholesale, and lease financing, and assessing our capital structure. Ford Credit calculates
leverage on a financial statement basis and on a managed basis using the following formulas:
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__________
* Excluding marketable securities related to insurance activities.
The following table illustrates the calculation of Ford Credit's financial statement leverage (in billions, except for ratios):
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The following table illustrates the calculation of Ford Credit's managed leverage (in billions, except for ratios):
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__________
(a) Includes securitized funding from discontinued operations in 2004.
(b) Includes retained interest in securitized receivables from discontinued operations in 2004.
(c) Excluding marketable securities related to insurance activities.