Ford 2004 Annual Report Download - page 77

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NOTES TO THE FINANCIAL STATEMENTS
NOTE 15. DEBT AND COMMITMENTS
Automotive and Financial Services debt as of December 31 was as follows (in millions):
Subordinated Indebtedness
Ford Motor Company Capital Trust II, a subsidiary trust (“Trust II”), has outstanding 6.50% Cumulative Convertible Trust Preferred
Securities with an aggregate liquidation preference of $5 billion (the “Trust II Preferred Securities”). The sole assets of Trust II are
$5.2 billion principal amount of 6.50% Junior Subordinated Debentures due 2032 of Ford Motor Company (the “Subordinated
Debentures”). At our option, we may redeem the Subordinated Debentures, in whole or in part, on or after January 15, 2007.
To the extent we redeem the Subordinated Debentures or upon the maturity of the Subordinated Debentures, Trust II is required
to redeem the Trust II Preferred Securities at $50 per share plus accrued and unpaid distributions. We guarantee the payment of
all distribution and other payments of the Trust II Preferred Securities to the extent not paid by Trust II, but only if and to the extent
we have made a payment of interest or principal on the Subordinated Debentures.
Credit Facilities*
Automotive Sector
At December 31, 2004, the Automotive sector had $7.2 billion of contractually committed credit agreements with various banks, of
which $7.1 billion were available for use. Eighty percent of the total facilities are committed through June 30, 2009. Of the
$7.2 billion, $6.9 billion constitute global credit facilities and may be used, at Ford’s option, by any of its direct or indirect majority-
owned subsidiaries on a guaranteed basis. Ford also has the ability to transfer, on a non-guaranteed basis, $2.6 billion of such
global credit facilities to Ford Credit and $518 million to FCE Bank plc. (“FCE”), Ford Credit’s European operation. All of the global
credit facilities are free of material adverse change clauses and restrictive financial covenants (for example, debt-to-equity limitations,
minimum net worth requirements and credit rating triggers that would limit our ability to borrow).
Automotive Financial Services
Weighted Weighted
Average Average
Rate a/ Amount Rate a/ Amount
2004 2003 2004 2003 2004 2003 2004 2003
Debt payable within one year
Short-term $ 270 $ 608 $ 1,868 $ 1,238
Commercial paper - - 23,303 17,295
Other short-term - - 9,389 9,234
Total short-term debt 8.6% 5.3% 270 608 2.8% 2.1% 34,560 27,767
Long-term payable within one year
Senior indebtedness 707 510 30,896 30,480
Subordinated indebtedness - - - 688 - - - -
Total debt payable within one year 977 1,806 65,456 58,247
Long-term debt
Senior indebtedness
Notes and bank debt 7.4% 7.3% 12,303 13,832 4.1% 4.3% 88,328 99,987
Unamortized discount - - (89) (66)
Total senior indebtedness 12,303 13,832 88,239 99,921
Subordinated indebtedness 6.5% 6.5% 5,155 5,155 9.4% 9.4% 843 843
Total long-term debt 17,458 18,987 89,082 100,764
Total debt $ 18,435 $ 20,793 $ 154,538 $ 159,011
Fair value b/ $ 18,301 $ 20,120 $ 156,967 $ 162,635
Maturity
There- Average
2005 2006 2007 2008 2009 After (Years)
Long-term debt maturities
Automotive $ 707 $ 538 $ 422 $ 335 $ 157 $ 16,006 25
Financial Services 30,896 24,444 20,105 7,759 14,139 22,635 4
a/ Includes the effect of interest rate swaps.
b/ Based on quoted market prices or current rates for similar debt with the same remaining maturities.