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4 9
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Ford Credit does not expect that any of these features will have a material adverse impact on its ability to securitize
receivables. In addition, Ford Credit’s ability to sell its receivables may be affected by the following factors: the amount and
credit quality of receivables available to sell, the performance of receivables sold in previous transactions, general demand for
the type of receivables Ford Credit offers, market capacity for Ford Credit-sponsored investments, accounting and regulatory
changes, Ford Credit’s credit ratings and Ford Credit’s ability to maintain back-up liquidity facilities for certain securitization
programs. If as a result of any of these or other factors, the cost of securitized funding significantly increased or securitized
funding were no longer available to Ford Credit, Ford Credit’s operations, financial condition and liquidity would be
adversely impacted.
Variable Interest Entities
See Note 16 of the Notes to the Financial Statements for a discussion of our variable interest entities.
AGGREGATE CONTRACTUAL OBLIGATIONS
We are party to many contractual obligations involving commitments to make payments to third parties. Most of these are
debt obligations incurred by our Financial Services sector. In addition, as part of our normal business practices, we enter into
contracts with suppliers for purchases of certain raw materials, components and services. These arrangements may contain
fixed or minimum quantity purchase requirements. We enter into such arrangements to facilitate adequate supply of these
materials and services. “Purchase obligations” are defined as off-balance sheet agreements to purchase goods or services that
are enforceable and legally binding on the company and that specify all significant terms.
The “Other liabilities” category includes only liabilities on our balance sheet that have a definite pay-out scheme or are not
contingent on a subsequent event. Other liabilities at December 31, 2004 represent a payment obligation related to our
acquisition of Land Rover in 2000.
The table below summarizes our contractual obligations as of December 31, 2004 (in millions):
For additional information to our long-term debt and operating lease obligations, see Notes 15 and 26 of the Notes to the
Financial Statements.
Payments Due by Period
Financial 2010 and
Obligations Automotive Services Total 2005 2006-2007 2008-2009 Thereafter
On-balance sheet:
Long-term debt* $ 18,165 $ 119,978 $ 138,143 $31,603 $ 45,509 $ 22,390 $ 38,641
Capital lease 246 - 246 39 63 62 82
Other liabilities 1,343 - 1,343 1,343 - - -
Off-balance sheet:
Purchase obligations 5,650 4,020 9,670 5,845 2,166 1,162 497
Operating lease 1,749 1,867 3,616 863 1,210 619 924
Total $ 27,153 $ 125,865 $153,018 $ 39,693 $ 48,948 $ 24,233 $ 40,144
* Principal obligation only.