Ford 2011 Annual Report Download - page 56

Management’s Discussion and Analysis of Financial Condition and Results of Operations
54 Ford Motor Company | 2011 Annual Report
2010 Compared with 2009
The chart below details the change in 2010 pre-tax operating profit compared with 2009 by causal factor.
The full-year increase was explained primarily by a lower provision for credit losses and lower depreciation expense for
leased vehicles due to higher auction values; partial offsets included lower volume and other items, primarily reflecting the
non-recurrence of net gains related to unhedged currency exposure from cross-border intercompany lending.
LIQUIDITY AND CAPITAL RESOURCES
Automotive Sector
Our Automotive liquidity strategy includes ensuring that we have sufficient liquidity available with a high degree of
certainty throughout the business cycle by generating cash from operations and maintaining access to other sources of
funding. For a discussion of risks to our liquidity, see "Item 1A. Risk Factors," of our Annual Report on Form 10-K for year
ended December 31, 2011, as well as Note 30 of the Notes to the Financial Statements regarding commitments and
contingencies that could impact our liquidity.
Gross Cash. Automotive gross cash includes cash and cash equivalents and marketable securities, net of any
securities-in-transit. Gross cash at December 31 was as follows (in billions):
Cash and cash equivalents
Marketable securities (a)
Total cash, marketable securities and loaned securities
Securities-in-transit (b)
Gross cash
2011
$7.9
15.0
22.9
—
$22.9
2010
$6.3
14.2
20.5
—
$20.5
2009
$9.7
15.2
24.9
—
$24.9
__________
(a) Included at December 31, 2011 are Ford Credit debt securities that we purchased, which are reflected in the table at a carrying value of
$201 million, the estimated fair value of which is $201 million. Also included are Mazda marketable securities with a fair value of $110 million. For
similar datapoints for the other periods listed here, see our prior-period financial reports.
(b) The purchase or sale of marketable securities for which the cash settlement was not made by period-end and for which there was a payable or
receivable recorded on the balance sheet at period-end.
Our cash, cash equivalents, and marketable securities are held primarily in highly liquid investments, which provide
for anticipated and unanticipated cash needs. Our cash, cash equivalents, and marketable securities primarily include
U.S. Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions, corporate
investment-grade securities, A-1/P-1 (or higher) rated commercial paper, and debt obligations of a select group of
non-U.S. governments, non-U.S. governmental agencies, and supranational institutions. Within our Automotive gross
cash portfolio, we currently do not hold investments in government obligations of Greece, Ireland, Italy, Portugal, or Spain,
nor did we hold any at December 31, 2011.