Ford 2013 Annual Report Download - page 88

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86 Ford Motor Company | 2013 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. RESTRICTED CASH
Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual
agreements are recorded in Other assets on our balance sheet.
Our Automotive sector restricted cash balances primarily include various escrow agreements related to legal,
insurance, customs, and environmental matters. The December 31, 2012 balance included cash collateral required to be
held against loans from the European Investment Bank (“EIB”). Our Financial Services sector restricted cash balances
primarily include cash held to meet certain local governmental and regulatory reserve requirements and cash held under
the terms of certain contractual agreements.
Restricted cash does not include required minimum balances or cash securing debt issued through securitization
transactions.
Restricted cash balances were as follows (in millions):
December 31,
2013
December 31,
2012
Automotive sector $ 14 $ 172
Financial Services sector 172 172
Total Company $ 186 $344
NOTE 6. FINANCIAL SERVICES SECTOR FINANCE RECEIVABLES
Our Financial Services sector finance receivables primarily relate to Ford Credit, but also include the Other Financial
Services segment and certain intersector eliminations.
Our Financial Services sector segments our finance receivables into North America and International "consumer" and
"non-consumer" portfolios. The receivables are generally secured by the vehicles, inventory, or other property being
financed.
Finance receivables are recorded at the time of origination or purchase at fair value and are subsequently reported at
amortized cost, net of any allowance for credit losses.
Consumer Portfolio. Receivables in this portfolio include products offered to individuals and businesses that finance
the acquisition of Ford and Lincoln vehicles from dealers for personal or commercial use. Retail financing includes retail
installment contracts for new and used vehicles and direct financing leases with retail customers, government entities,
daily rental companies, and fleet customers.
Non-Consumer Portfolio. Receivables in this portfolio include products offered to automotive dealers. The products
include:
• Dealer financing – wholesale loans to dealers to finance the purchase of vehicle inventory, also known as
floorplan financing, and loans to dealers to finance working capital and improvements to dealership facilities,
finance the purchase of dealership real estate, and finance other dealer programs. Wholesale financing is
approximately 95% of our dealer financing
• Other financing – purchased receivables primarily related to the sale of parts and accessories to dealers