Ford 2006 Annual Report Download - page 44
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Please find page 44 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
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In addition to the specific transaction-related structural features discussed above, Ford Credit's securitization programs
may be affected by the following factors: the amount and credit quality of assets available to securitize, the performance
of assets in its previous securitizations, general demand for the type of assets supporting the asset-backed securities,
market capacity for Ford Credit and Ford Credit-sponsored investments, accounting and regulatory changes, Ford Credit's
credit ratings, and the availability of liquidity facilities. If, as a result of any of these or other factors, the cost of
securitization funding were to increase significantly or funding through securitizations were no longer available to Ford
Credit, it would have a material adverse impact on Ford Credit's financial condition, results of operations or liquidity.
AGGREGATE CONTRACTUAL OBLIGATIONS
We are party to many contractual obligations involving commitments to make payments to third parties. Most of these
are debt obligations incurred by our Financial Services sector. Long-term debt may have fixed or variable interest rates.
For long-term debt with variable rate interest, we estimate the future interest payments based on projected market interest
rates for various floating-rate benchmarks received from third parties. In addition, as part of our normal business
practices, we enter into contracts with suppliers for purchases of certain raw materials, components and services. These
arrangements may contain fixed or minimum quantity purchase requirements. We enter into such arrangements to
facilitate adequate supply of these materials and services. "Purchase obligations" are defined as off-balance sheet
agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all
significant terms.
The table below summarizes our contractual obligations as of December 31, 2006 (in millions):
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* Amount includes $796 million for the current portion of long-term debt. See Note 15 of the Notes to the Financial Statements for additional discussion.
For additional information regarding long-term debt, operating lease obligations, and pension and OPEB obligations, see
Notes 15, 27 and 23, respectively, of the Notes to the Financial Statements.