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44 Ford Motor Company | 2012 Annual Report
Management's Discussion and Analysis of Financial Condition and Results of Operations
44
Credit Facilities and Committed Liquidity Programs. See Note 17 of the Notes to the Financial Statements for more
information regarding credit facilities and committed liquidity programs for Ford Credit. While there is a risk of non-
renewal of some of Ford Credit's committed liquidity programs, which could lead to a reduction in the size of these
programs and/or higher costs, Ford Credit's capacity in excess of eligible receivables would enable it to absorb some
reductions. Ford Credit's ability to obtain funding under these programs is subject to having a sufficient amount of
assets eligible for these programs as well as its ability to obtain interest rate hedging arrangements for certain
securitization transactions.
Balance Sheet Liquidity Profile. Ford Credit defines its balance sheet liquidity profile as the cumulative maturities,
including the impact of prepayments, of its finance receivables, investment in operating leases, and cash, less the
cumulative debt maturities over upcoming annual periods. The following chart shows its cumulative maturities for the
periods presented at December 31, 2012:
__________
(a) Includes finance receivables net of unearned income, investment in operating leases net of accumulated depreciation, cash and
cash equivalents, and marketable securities (excludes marketable securities related to insurance activities).
(b) Retail and lease ABS are treated as amortizing immediately to match the underlying assets.
(c) Includes all of the wholesale ABS term and conduit maturities of $8 billion that otherwise contractually extend to 2014 and
beyond.
Ford Credit's balance sheet is inherently liquid because of the short-term nature of its finance receivables,
investment in operating leases, and cash. Maturities of investment in operating leases consist primarily of rental
payments attributable to depreciation over the remaining life of the lease and the expected residual value at lease
termination. Maturities of finance receivables and investment in operating leases in the chart above include expected
prepayments for Ford Credit's retail installment sale contracts and investment in operating leases. The 2013 finance
receivables maturities in the chart above also include all of the wholesale receivables maturities that are otherwise
extending beyond 2013. The chart above also reflects the following adjustments to debt maturities to match all of the
asset-backed debt maturities with the underlying asset maturities:
• The 2013 maturities include all of the wholesale securitization transactions, even if the maturities extend
beyond 2013; and
• Retail securitization transactions under certain committed liquidity programs are assumed to amortize
immediately rather than amortizing after the expiration of the commitment period.
Leverage. Ford Credit uses leverage, or the debt-to-equity ratio, to make various business decisions, including
evaluating and establishing pricing for retail, wholesale, and lease financing, and assessing its capital structure. Ford
Credit refers to its shareholder's interest as equity.