Ford 2011 Annual Report Download - page 64

Management’s Discussion and Analysis of Financial Condition and Results of Operations
62 Ford Motor Company | 2011 Annual Report
For 2012, Ford Credit projects full-year public term funding in the range of $18 billion to $23 billion, consisting of
$8 billion to $11 billion of unsecured debt and $10 billion to $12 billion of public securitizations. In addition to the public
issuance, Ford Credit is projecting $10 billion to $13 billion of funding from its private sources. Through
February 20, 2012, Ford Credit completed about $7 billion of public term funding transactions, including about $4 billion
for retail and wholesale asset-backed securitization transactions in the United States and $3 billion of unsecured issuance
in the United States, Europe, and Canada. Ford Credit also completed about $1 billion of private term funding
transactions, primarily reflecting retail, lease and wholesale asset-backed transactions in the United States, Europe, and
Mexico.
Funding is expected to be relatively flat in 2012 despite the projected increase in managed receivables, largely
reflecting fewer debt maturities.
Liquidity. The following chart illustrates Ford Credit's liquidity programs and utilization at December 31, 2011:
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(a) FCAR and conduits subject to availability of sufficient assets and ability to obtain derivatives to manage interest rate risk; FCAR
commercial paper must be supported by bank lines equal to at least 100% of the principal amount; conduits include other committed
securitization programs.
(b) Securitization cash is to be used only to support on-balance sheet securitization transactions.
(c) Excess capacity is capacity in excess of eligible receivables.
(d) Cash, cash equivalents, and marketable securities (excludes marketable securities related to insurance activities).
At December 31, 2011 Ford Credit had $44.7 billion of committed capacity and cash. After excluding securitization
cash and adjusting for available assets, liquidity was $38.6 billion, of which $21.5 billion was utilized, leaving about
$17 billion of liquidity available for use. Committed capacity at year-end was $32.6 billion, about $1.4 billion higher than
at the end of the third quarter of 2011. Ford Credit ended the year with about $2.4 billion of excess committed capacity,
providing a funding source for future originations and flexibility to transfer capacity among markets and asset classes
where most needed.
At December 31, 2011, Ford Credit's liquidity available for use was lower than year-end 2010 by about $5.5 billion,
reflecting cash payments for debt maturities, repurchases and calls, distributions, and tax payments that were higher than
the liquidity generated from profits and new debt issuances.
Cash, Cash Equivalents, and Marketable Securities. At December 31, 2011, Ford Credit's cash, cash equivalents,
and marketable securities (excluding marketable securities related to insurance activities) totaled $12.1 billion, compared
with $14.6 billion at year-end 2010. In the normal course of its funding activities, Ford Credit may generate more
proceeds than are required for its immediate funding needs. These excess amounts are maintained primarily as highly
liquid investments, which provide liquidity for its short-term funding needs and give it flexibility in the use of its other
funding programs. Ford Credit's cash, cash equivalents, and marketable securities are held primarily in highly liquid
investments, which provide for anticipated and unanticipated cash needs. Ford Credit's cash, cash equivalents, and