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Management’s Discussion and Analysis of Financial Condition and Results of Operations
23
•Securitized off-balance sheet basis. Includes receivables sold in securitization transactions that are not reflected
on Ford Credit's balance sheet;
•Managed basis. Includes on-balance sheet and securitized off-balance sheet receivables and leases that Ford
Credit continues to service; and
•Serviced basis. Includes managed receivables and leases and receivables sold in whole-loan sale transactions
where Ford Credit retains no interest in the sold receivables, but which it continues to service.
Ford Credit analyzes its financial performance primarily on a managed and on-balance sheet basis. It retains interests
in receivables sold in off-balance sheet securitizations and, with respect to subordinated retained interests, has credit risk.
As a result, it evaluates credit losses, receivables, and leverage on a managed basis as well as on an on-balance sheet
basis. In contrast, Ford Credit does not have the same financial interest in the performance of receivables sold in whole-
loan sale transactions, and, as a result, Ford Credit generally reviews the performance of its serviced portfolio only to
evaluate the effectiveness of its origination and collection activities. To evaluate the performance of these activities, Ford
Credit monitors a number of measures, such as repossession statistics, losses on repossessions and the number of
bankruptcy filings.
Ford Credit's receivable levels are shown in the table below (in billions):
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5HWDLOLQVWDOOPHQW     
:KROHVDOH     
2WKHU    
7RWDOILQDQFHUHFHLYDEOHVQHW    
1HWLQYHVWPHQWLQRSHUDWLQJOHDVHV    
7RWDOPDQDJHG    
6HUYLFHG
 
   
__________
* At December 31, 2006 and 2005, includes finance receivables of $56.5 billion and $44.7 billion, respectively, that have been sold for legal purposes in
securitizations that do not satisfy the requirements for accounting sale treatment. In addition, at December 31, 2006 and 2005, includes net
investment in operating leases of $17.3 billion and $6.5 billion, respectively, that have been sold for legal purposes in securitizations that do not satisfy
the requirements for accounting sale treatment. These underlying securitized assets are available only for payment of the debt or other obligations
issued or arising in the securitization transactions; they are not available to pay Ford Credit's other obligations or the claims of Ford Credit's other
creditors.
Managed receivables decreased from year-end 2005, primarily reflecting lower wholesale receivable levels, offset
partially by increased net investment in operating leases. On-balance sheet receivable levels increased, primarily
reflecting the impact of U.S. public retail transactions in 2006 being reported on-balance sheet. Securitized off-balance
sheet receivables declined for the same reason.