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46 Ford Motor Company | 2013 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
At December 31, 2013, FCAR’s bank liquidity facilities available to support FCAR’s asset-backed commercial paper,
subordinated debt, or its purchase of Ford Credit’s asset-backed securities totaled $3.5 billion, down from $6.3 billion at
December 31, 2012. This reduction has been offset by increases in other committed liquidity programs, leaving Ford
Credit’s total sources of liquidity largely unchanged. Ford Credit will transition away from its FCAR program in 2014.
During this transition Ford Credit will retain liquidity facilities sufficient to support FCAR’s asset-backed commercial paper
and subordinated debt. FCAR has not made any purchases of asset-backed securities since March 2013 and will make
no further purchases of asset-backed securities. Ford Credit’s plan is to completely wind down FCAR by second quarter
2014. Ford Credit has not issued any new FCAR commercial paper since year-end 2013, and Ford Credit does not plan
to issue any in the future. To facilitate the wind-down of the program, in early 2014 Ford Credit began repurchasing asset-
backed securities held by FCAR. Ford Credit is funding these purchases through available liquidity sources, including
cash and committed liquidity facilities. In October 2013, Ford Credit established a new two-year syndicated committed
asset-backed liquidity facility. The new facility, along with growth in other asset-backed private capacity, will offset the
liquidity effects of winding down the FCAR program.
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, 2013:
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 2014 finance receivables maturities
in the chart above also include all of the wholesale receivables maturities that are otherwise extending beyond 2014. 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 2014 maturities include all of the wholesale securitization transactions, even if the maturities extend
beyond 2014; and
• Retail securitization transactions under certain committed liquidity programs are assumed to amortize
immediately rather than amortizing after the expiration of the commitment period.