Ford 2011 Annual Report Download - page 65

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Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford Motor Company | 2011 Annual Report 63
marketable securities (excluding marketable securities related to insurance activities) primarily include U.S. Treasury
obligations, federal agency securities, bank time deposits with investment-grade institutions and non-U.S. central banks,
corporate investment-grade securities, A-1/P-1 (or higher) rated commercial paper, debt obligations of a select group of
non-U.S. governments, non-U.S. government agencies, supranational institutions and money market funds that carry the
highest possible ratings. Ford Credit currently does not hold cash, cash equivalents, or marketable securities consisting
of investments in government obligations of Greece, Ireland, Italy, Portugal, or Spain, nor did Ford Credit hold any at
December 31, 2011. The average maturity of these investments ranges from 90 days to up to one year and is adjusted
based on market conditions and liquidity needs. Ford Credit monitors its cash levels and average maturity on a daily
basis. Cash, cash equivalents, and marketable securities include amounts to be used only to support Ford Credit's
securitization transactions of $3.7 billion and $4.2 billion at December 31, 2011 and 2010, respectively.
Ford Credit's substantial liquidity and cash balance have provided the opportunity to selectively call and repurchase
its unsecured debt on the open market. For full year 2011, Ford Credit called about $1.1 billion of its unsecured debt
maturities and repurchased about $1.2 billion.
Credit Facilities and Committed Liquidity Programs. See Note 18 of the Notes to the Financial Statements for more
information regarding credit facilities and committed liquidity programs for Ford Credit. While there is a risk of non-
renewal of some of Ford Credit's committed liquidity programs, which could lead to a reduction in the size of these
programs and/or higher costs, Ford Credit's capacity in excess of eligible receivables would enable it to absorb some
reductions. Ford Credit's ability to obtain funding under these programs is subject to having a sufficient amount of assets
eligible for these programs as well as its ability to obtain interest rate hedging arrangements for certain securitization
transactions.
Balance Sheet Liquidity Profile. Ford Credit defines its balance sheet liquidity profile as the cumulative maturities of
its finance receivables, investment in operating leases, and cash less the cumulative debt maturities over upcoming
annual periods. The following chart shows Ford Credit's cumulative maturities for the periods presented at
December 31, 2011:
__________
(a) Includes finance receivables net of unearned income, investment in operating leases net of accumulated depreciation, cash and
cash equivalents, and marketable securities (excludes marketable securities related to insurance activities).
(b) Retail and lease ABS are treated as amortizing immediately to match the underlying assets.
(c) Includes all of the wholesale ABS term and conduit maturities of $4.8 billion that otherwise contractually extend to 2013 and beyond.