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Management’s Discussion and Analysis of Financial Condition and Results of Operations
66 Ford Motor Company | 2010 Annual Report
AGGREGATE CONTRACTUAL OBLIGATIONS
We are party to many contractual obligations involving commitments to make payments to third parties. Most of
these are debt obligations incurred by our Financial Services sector. Long-term debt may have fixed or variable interest
rates. For long-term debt with variable rate interest, we estimate the future interest payments based on projected market
interest rates for various floating-rate benchmarks received from third parties. In addition, as part of our normal business
practices, we enter into contracts with suppliers for purchases of certain raw materials, components and services. These
arrangements may contain fixed or minimum quantity purchase requirements. We enter into such arrangements to
facilitate adequate supply of these materials and services. "Purchase obligations" are defined as off-balance sheet
agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all
significant terms.
The table below summarizes our contractual obligations as of December 31, 2010 (in millions):
Payments Due by Period
Payments Due by PeriodPayments Due by Period
Payments Due by Period
2011
20112011
2011
2012
2012 2012
2012 -
--- 2013
2013 2013
2013
2014
20142014
2014
-
--- 201
201 201
2015
555
2016
20162016
2016 and
and and
and
Thereafter
ThereafterThereafter
Thereafter
Total
TotalTotal
Total
Automotive Sect
Automotive SectAutomotive Sect
Automotive Sector
oror
or
On
OnOn
On-
---balance sheet
balance sheetbalance sheet
balance sheet
Long-term debt (a) (b) (excluding capital leases)
..........
$ 1,168 $ 4,833 $ 1,309 $ 11,139 $ 18,449
Interest payments relating to long-term debt (c)
............
867 1,766 1,416 10,845 14,894
Capital leases................................
................................
21 15 7 5 48
Off
OffOff
Off-
---balan
balanbalan
balance sheet
ce sheetce sheet
ce sheet
Purchase obligations................................
.....................
1,944 1,711 821 1,515 5,991
Operating leases ................................
...........................
183 298 183 231 895
Total Automotive sector ................................
..............
4,183 8,623 3,736 23,735 40,277
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
On
OnOn
On-
---balance sheet
balance sheetbalance sheet
balance sheet
Long-term debt (a) (b) (excluding capital leases)
..........
26,208 28,771 11,744 5,083 71,806
Interest payments relating to long-term debt (c)
............
3,132 3,725 1,804 1,396 10,057
Capital leases................................
................................
— — — — —
Off
OffOff
Off-
---balance sheet
balance sheetbalance sheet
balance sheet
Purchase obligations................................
.....................
33 24 9 4 70
Operating leases ................................
...........................
66 92 41 47 246
Total Financial Services sector ................................
...
29,439 32,612 13,598 6,530 82,179
Intersector elimination (d)................................
..................
(201) — — — (201)
Total Company................................
..............................
$ 33,421 $ 41,235 $ 17,334 $ 30,265 $ 122,255
(a) Amount includes, prior to adjustment noted above, $1,189 million for the Automotive sector and $26,208 million for the Financial Services sector for
the current portion of long-term debt. See Note 19 of the Notes to the Financial Statements for additional discussion.
(b) Automotive sector excludes unamortized debt discounts of $(280) million. Financial Services sector excludes unamortized debt discounts of
$(403) million and adjustments of $302 million related to designated fair value hedges of the debt.
(c) Excludes amortization of debt discounts/premiums.
(d) Intersector elimination related to Ford's acquisition of Ford Credit debt securities. See Note 1 of the Notes to the Financial Statements for
additional detail.
The amount of unrecognized tax benefits for 2010 of $1.1 billion (see Note 23 of the Notes to the Financial
Statements) is excluded from the table above. Final settlement of a significant portion of these obligations will require
bilateral tax agreements among us and various countries, the timing of which cannot be reasonably estimated.
For additional information regarding long-term debt, operating lease obligations, and pension and OPEB obligations,
see Notes 19, 8, and 18, respectively, of the Notes to the Financial Statements.