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38 Ford Motor Company | 2013 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Gross Cash. Automotive gross cash includes cash and cash equivalents and marketable securities, net of any
securities-in-transit. Gross cash is detailed below as of the dates shown (in billions):
December 31, December 31, December 31,
2013 2012 2011
Cash and cash equivalents $ 5.0 $ 6.2 $ 7.9
Marketable securities 20.1 18.2 15.0
Total cash, marketable securities, and loaned securities 25.1 24.4 22.9
Securities-in-transit (a) (0.3)(0.1) —
Gross cash $ 24.8 $24.3 $22.9
__________
(a) The purchase or sale of marketable securities for which the cash settlement was not made by period-end and a payable or receivable was recorded
on the balance sheet.
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. Department of Treasury obligations, federal agency securities, bank time deposits with investment-grade institutions,
corporate investment-grade securities, commercial paper rated A-1/P-1 or higher, and debt obligations of a select group of
non-U.S. governments, non-U.S. governmental agencies, and supranational institutions. The average maturity of these
investments ranges from about 90 days to up to about one year, and is adjusted based on market conditions and liquidity
needs. We monitor our cash levels and average maturity on a daily basis. Within our Automotive gross cash portfolio, we
did not hold investments in government obligations of Greece, Ireland, Italy, Portugal, or Spain at December 31, 2013.
In managing our business, we classify changes in Automotive gross cash into operating-related and other items
(which includes the impact of certain special items, contributions to funded pension plans, certain tax-related transactions,
acquisitions and divestitures, capital transactions with the Financial Services sector, dividends paid to shareholders, and
other—primarily financing-related). Our key liquidity metrics are operating-related cash flow (which best represents the
ability of our Automotive operations to generate cash), Automotive gross cash, and Automotive liquidity. Automotive gross
cash and liquidity as of the dates shown were as follows (in billions):
December 31,
2013
December 31,
2012
Gross cash $ 24.8 $24.3
Available credit lines
Revolving credit facility, unutilized portion 10.7 9.5
Local lines available to foreign affiliates, unutilized portion 0.7 0.7
Automotive liquidity $ 36.2 $34.5
We believe the cash flow analysis reflected in the table below is useful to investors because it includes in operating-
related cash flow elements that we consider to be related to our Automotive operating activities (e.g., capital spending)
and excludes cash flow elements that we do not consider to be related to the ability of our operations to generate cash.
This differs from a cash flow statement prepared in accordance with generally accepted accounting principles in the
United States (“GAAP”) and differs from Net cash provided by/(used in) operating activities, the most directly comparable
GAAP financial measure.