Ford 2010 Annual Report Download - page 51

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford Motor Company | 2010 Annual Report 49
Funding Portfolio. Ford Credit's outstanding debt and off-balance sheet securitization transactions were as follows on
the dates indicated (in billions, except for ratios):
December 31,
December 31,December 31,
December 31,
Debt
DebtDebt
Debt
2010
20102010
2010
2009
20092009
2009
Asset-backed commercial paper (a)(b) ................................................................................................
.......................
$ 6.6 $ 6.4
Other asset-backed short-term debt (a) ................................................................................................
......................
1.2 4.5
Ford Interest Advantage (c) ................................................................................................
................................
4.5 3.6
Unsecured commercial paper ................................................................................................
................................
0.1 0.0
Other short-term debt................................................................................................................................
..................
0.9 0.9
Total short-term debt................................................................................................
................................
13.3 15.4
Unsecured long-term debt (including notes payable within one year) ................................
................................
33.8 38.9
Asset-backed long-term debt (including notes payable within one year) (a)................................
................................
35.8 42.0
Total debt................................................................................................................................
................................
82.9 96.3
Off
OffOff
Off-
---Balance Sheet Securitizations Balance Sheet SecuritizationsBalance Sheet Securitizations
Balance Sheet Securitizations
Securitized off-balance sheet portfolio ................................................................................................
........................
— 0.1
Retained interest................................................................................................................................
.........................
— —
Total off-balance sheet securitization transactions................................................................
................................
— 0.1
Total debt plus off-balance sheet securitization transactions ................................................................
..................
$ 82.9 $ 96.4
Ratios
RatiosRatios
Ratios
Securitized funding to managed receivables................................................................
................................
52% 56%
Short-term debt and notes payable within one year to total debt................................
................................
47 43
Short-term debt and notes payable within one year to total capitalization ................................
................................
42 39
__________
(a) Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related
enhancements.
(b) At December 31, 2010 and 2009, Ford Credit did not have any asset-backed commercial paper sold to the U.S. government-sponsored
Commercial Paper Funding Facility.
(c) The Ford Interest Advantage program consists of Ford Credit's floating rate demand notes.
At December 31, 2010, unsecured long-term debt (including notes payable within one year) was down about
$5 billion from year-end 2009, primarily reflecting about $11 billion of debt maturities, repurchases, and calls, offset
partially by about $6 billion of new unsecured public and private long-term debt issuance. Remaining unsecured long-
term debt maturities are as follows: 2011 — $9 billion; 2012 — $7 billion; 2013 — $5 billion; and the remainder
thereafter. At December 31, 2010, asset-backed long-term debt (including notes payable within one year) was down
about $6 billion from year-end 2009, reflecting asset-backed long-term debt amortization in excess of issuance.
Ford Credit is projecting 2011 year-end managed receivables in the range of $80 to $85 billion and securitized
funding to represent about 53% to 57% of total managed receivables. It is Ford Credit's expectation that this percentage
will decrease over time reflecting its ability to obtain term funding from the unsecured markets on increasingly favorable
terms.
Funding Plan. The following table illustrates Ford Credit's public and private term funding issuances for 2009 and
2010 and its planned issuances for 2011 (in billions):
20
2020
2011 Forecast
11 Forecast11 Forecast
11 Forecast
2
2220 00010 1010
10
2009 20092009
2009
Pub
PubPub
Public Term Funding
lic Term Fundinglic Term Funding
lic Term Funding
Unsecured ................................................................................................
................................
$ 6 – 8 $ 6 $ 5
Securitization transactions ................................................................
................................
12 – 16 11 15
Total public term funding................................................................
................................
19 – 24 $ 17 $ 20
Private Term Funding
Private Term FundingPrivate Term Funding
Private Term Funding*................................................................................................
................................
$ 4 – 8 $ 8 $ 11
__________
* Includes private term debt, securitization transactions, and other term funding; excludes sales to Ford Credit's on-balance sheet asset-backed
commercial paper program.
In 2010, Ford Credit completed about $17 billion of public term funding transactions, including: about $5 billion of
retail asset-backed securitization transactions; about $3 billion of wholesale asset-backed securitization transactions;
about $3 billion of lease asset-backed securitization transactions; and about $6 billion of unsecured issuances. In 2010,
Ford Credit completed about $8 billion of private term funding transactions (excluding Ford Credit's on-balance sheet
asset-backed commercial paper program) primarily reflecting securitization transactions across all regions and asset
classes.