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Notes to the Financial Statements
NOTE 13. SALES OF RECEIVABLES — FINANCIAL SERVICES SECTOR (Continued)
Cash Flow
The following table summarizes the cash flow movements between the transferees and us in our off-balance sheet sales of
receivables for the years ended December 31 (in millions):
2005 2004 2003
Proceeds from sales of receivables
Proceeds from sales of retail receivables ..................................................................................................................
.
$ 15,549 $ 4,795 $ 15,761
Proceeds from interest in sold wholesale receivables...............................................................................................
.
3,739 3,957 966
Proceeds from revolving-period securitizations........................................................................................................
.
1,349 1,567 2,610
Proceeds from sale of retained notes – retail.............................................................................................................
.
298 — —
Total ........................................................................................................................................................................
.
$ 20,935 $ 10,319 $ 19,337
Cash flows related to net change in retained interest
Interest in sold retail receivables ...............................................................................................................................
.
$ 708 $ 1,457 $ 893
Interest in sold wholesale receivables .......................................................................................................................
.
2,684 (1,831) 1,140
Total ........................................................................................................................................................................
.
$ 3,392 $ (374) $ 2,033
Servicing fees
Retail..........................................................................................................................................................................
.
$ 260 $ 260 $ 409
Wholesale ..................................................................................................................................................................
.
116 112 209
Total ........................................................................................................................................................................
.
$ 376 $ 372 $ 618
Other cash flows received on interests retained (which are reflected in securitization income)
Retail..........................................................................................................................................................................
.
$ 276 $ 356 $ 735
Wholesale ..................................................................................................................................................................
.
507 802 810
Total ........................................................................................................................................................................
.
$ 783 $ 1,158 $ 1,545
Repurchased retail receivables......................................................................................................................................
.
$ (43) $ (143) $ (193)
Other Disclosures
The following table summarizes key assumptions used in estimating cash flows from sold retail receivables and the
corresponding sensitivity of the current fair values to 10% and 20% adverse changes (in millions):
Impact on Fair Value Based
Assumption on Adverse Change
Percentage 10% Change 20% Change
(annual rate)
Cash flow discount rate........................................................................................................................... 11% $ (12) $ (24)
Estimated net credit loss rate .................................................................................................................. 0.1% - 5.0% (19) (38)
Prepayment speed.................................................................................................................................... 0.9% - 1.5% (3) (6)
The effect of a variation in a particular assumption on the fair value of residual interest in securitization transactions was
calculated without changing any other assumptions and changes in one factor may result in changes in another.
Outstanding delinquencies over 30 days related to the off-balance sheet securitized portfolio were $386 million and
$410 million at December 31, 2005 and 2004, respectively. Credit losses, net of recoveries, were $127 million and $244 million
for the years ended December 31, 2005 and 2004, respectively. Expected static pool credit losses related to outstanding securitized
retail receivables were 1.55% at December 31, 2005. To calculate the static pool credit losses, actual and projected future credit
losses are added together and divided by the original balance of each pool of assets.
Ford Motor Company Annual Report 2005 76 Ford Motor Company Annual Report 2005 77