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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 147
NOTE 19. DEBT AND COMMITMENTS (Continued)
The following table shows the assets and liabilities related to our Financial Services sector's secured debt
arrangements that are included in our financial statements for the years ended December 31 (in billions):
2010
20102010
2010
Cash and Cash
Cash and Cash Cash and Cash
Cash and Cash
Equivalents
Equivalents Equivalents
Equivalents
Finance Receivables, Net
Finance Receivables, Net Finance Receivables, Net
Finance Receivables, Net
and
and and
and Net Investment in
Net Investment in Net Investment in
Net Investment in
Operating Leases
Operating LeasesOperating Leases
Operating Leases
Related
Related Related
Related
Debt
DebtDebt
Debt
VIEs (
VIEs (VIEs (
VIEs (a
aaa)
)))
Finance receivables ................................................................
................................
$ 3.3 $ 50.5 $ 37.2
Net investment in operating leases ................................
................................
0.8 6.1 3.0
Total................................................................
................................
$ 4.1 $ 56.6 $ 40.2
Non
NonNon
Non-
---VIE
VIEVIE
VIE
Finance receivables (b)................................
................................
$ 0.2 $ 4.1 $ 3.7
Total securitization transactions
Total securitization transactionsTotal securitization transactions
Total securitization transactions
Finance receivables ................................................................
................................
$ 3.5 $ 54.6 $ 40.9
Net investment in operating leases ................................
................................
0.8 6.1 3.0
Total................................................................
................................
$ 4.3 $ 60.7 $ 43.9
2009
20092009
2009
Cash and Cash
Cash and Cash Cash and Cash
Cash and Cash
Equivalents
EquivalentsEquivalents
Equivalents
Finance Receivables, Net
Finance Receivables, Net Finance Receivables, Net
Finance Receivables, Net
and Net Investment in
and Net Investment in and Net Investment in
and Net Investment in
Operating Leases
Operating LeasesOperating Leases
Operating Leases
Related
Related Related
Related
Debt
DebtDebt
Debt
VIEs (a
VIEs (aVIEs (a
VIEs (a)
)))
Finance receivables ................................................................
................................
$ 3.6 $ 57.4 $ 39.6
Net investment in operating leases ................................
................................
1.3 10.2 6.6
Total................................................................
................................
$ 4.9 $ 67.6 $ 46.2
Non
NonNon
Non-
---VIE
VIEVIE
VIE
Finance receivables (b)................................
................................
$ 0.3 $ 6.1 $ 6.7
Total securitization transactions
Total securitization transactionsTotal securitization transactions
Total securitization transactions
Finance receivables ................................................................
................................
$ 3.9 $ 63.5 $ 46.3
Net investment in operating leases ................................
................................
1.3 10.2 6.6
Total................................................................
................................
$ 5.2 $ 73.7 $ 52.9
(a)
Includes assets that can be used to settle liabilities of the consolidated VIEs and the related debt of the VIEs. See Note 13 for additional
information on Financial Services sector VIEs.
(b)
Certain debt issued by the VIEs to affiliated companies served as collateral for accessing the ECB open market operations program. This
external funding of $334 million and $1.8 billion at December 31, 2010 and December 31, 2009, respectively was not reflected as a liability of
the VIEs and is reflected as a non-VIE liability above. The finance receivables backing this external funding are reflected in VIE finance
receivables.
Financial Services sector asset-backed debt also included $87 million and $97 million at December 31, 2010 and
December 31, 2009 respectively, that is secured by property.
Credit Facilities
At December 31, 2010, Ford Credit and its majority-owned subsidiaries, including FCE Bank plc ("FCE"), had
$1.1 billion of contractually-committed unsecured credit facilities with financial institutions, of which $568 million were
available for use. Of the credit facilities available for use, $510 million expire in 2011 and $58 million expire in 2012. Of
the $1.1 billion of contractually-committed credit facilities, almost all are FCE worldwide credit facilities. The FCE
worldwide credit facilities may be used, at FCE’s option, by any of FCE’s direct or indirect, majority owned subsidiaries.
FCE will guarantee any such borrowings. All of the worldwide credit facilities are free of material adverse change clauses,
restrictive financial covenants (for example, debt-to-equity limitations and minimum net worth requirements) and credit
rating triggers that could limit Ford Credit's ability to obtain funding.
In addition, at December 31, 2010, Ford Credit had about $9 billion of contractually-committed liquidity facilities
provided by banks to support its FCAR program. Of the $9 billion of contractually-committed liquidity facilities, $4.3 billion
expire in 2011, $348 million expire in 2012, and $4.4 billion expire in 2013. Utilization of these facilities is subject to
conditions specific to the FCAR program and Ford Credit having a sufficient amount of eligible assets for securitization.