Ford 2009 Annual Report Download - page 137

Notes to the Financial Statements
Ford Motor Company | 2009 Annual Report 135
NOTE 19. DEBT AND COMMITMENTS (Continued)
Events of Default. In addition to customary payment, representation, bankruptcy and judgment defaults, the
Arrangement Agreement contains cross-payment and cross-acceleration defaults with respect to other debt for borrowed
money and a change in control default, as well as events of default specific to the facility.
Other Automotive Credit Facilities*
At December 31, 2009, we had $628 million of other contractually-committed Automotive credit facilities with financial
institutions, including $25 million of worldwide Automotive unsecured credit facilities and $603 million of local credit
facilities to foreign Automotive affiliates. Of the $628 million of contractually-committed, $130 million has been utilized. Of
the $498 million available for use, $60 million expire in 2010, $65 million expire in 2013, and $373 million expire in 2014.
Financial Services Sector
Unsecured Debt
Debt Repurchases. During 2009, through private market transactions, our Financial Services sector repurchased an
aggregate of $3.6 billion principal amount of its outstanding notes for $3.5 billion in cash. As a result, our Financial
Services sector recorded a pre-tax gain of $67 million (net of unamortized discounts, premiums and fees) in 2009
($51 million related to Ford Holdings and $16 million related to Ford Credit).
Asset-Backed Debt
Ford Credit transfers finance receivables and net investments in operating leases in structured transactions to fund
operations and to maintain liquidity. Each transaction is evaluated to determine whether for accounting purposes the
transfer qualifies as a sale of financial assets or a secured borrowing. The majority of Ford Credit's transactions do not
meet the criteria for selling and derecognizing financial assets. Accordingly, such transactions are recorded as a secured
borrowing and the assets continue to be reported on our financial statements as Finance receivables, net or as Net
investment in operating leases.
The following table shows the assets and liabilities related to Ford Credit's secured debt arrangements that are
included in our financial statements for the years ended December 31 (in billions):
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