Ford 2009 Annual Report Download - page 102

Notes to the Financial Statements
100 Ford Motor Company | 2009 Annual Report
NOTE 7. FINANCE RECEIVABLES — FINANCIAL SERVICES SECTOR (Continued)
Finance Receivables, Net
Finance receivables, net, at December 31, were as follows (in millions):
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






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   
:KROHVDOH 
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   
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   
8QHDUQHGLQWHUHVWVXSSOHPHQWV 
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  (1,343)
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   
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   
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   
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   
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QRWVXEMHFWWRIDLUYDOXHGLVFORVXUHUHTXLUHPHQWV
Finance receivables that originated outside of the United States were $35.4 billion and $43.1 billion at
December 31, 2009 and 2008, respectively. At December 31, 2009, finance receivables included $663 million owed by the
three customers with the largest receivables balances.
Included in net finance and other receivables at December 31, 2009 and 2008 were $64.4 billion and $73.7 billion,
respectively, of finance receivables that secure certain debt obligations. The cash flows generated from collection of
these receivables can be used only for payment of the related debt and obligations arising from the transfer; they are not
available to pay our other obligations or the claims of our other creditors (see Notes 13 and 19).
The fair value of finance receivables is generally calculated by discounting future cash flows using an estimated
discount rate that reflects the current credit, interest rate, and prepayment risks associated with similar types of
instruments.
Scheduled maturities of total finance receivables, including minimum lease rentals, are as follows (in millions):
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
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7KHUHDIWHU
7RWDO 7RWDO7RWDO
7RWDO
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         
Experience indicates that a portion of the portfolio is repaid before the scheduled maturity dates.
The net investment in direct financing leases at December 31 was as follows (in millions):
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
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   
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   
/RDQRULJLQDWLRQFRVWV 
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   
(VWLPDWHGUHVLGXDOYDOXHV 
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   
/HVV$OORZDQFHIRUFUHGLWORVVHV 
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   
1HWLQYHVWPHQWLQGLUHFWILQDQFLQJOHDVHV 
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   
The investment in direct financing leases primarily relates to the leasing of vehicles with a term greater than
60 months. Scheduled maturities of minimum lease rentals, as included above, are as follows (in millions):
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         