Ford 2012 Annual Report Download - page 103
Download and view the complete annual report
Please find page 103 of the 2012 Ford annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
 |
 |
Ford Motor Company | 2012 Annual Report 101
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 12. VARIABLE INTEREST ENTITIES (Continued)
Interest expense on securitization debt related to consolidated VIEs was $760 million, $994 million, and $1,247 million
in 2012, 2011, and 2010, respectively.
VIEs that are exposed to interest rate or currency risk have reduced their risks by entering into derivative transactions.
In certain instances, we have entered into offsetting derivative transactions with the VIE to protect the VIE from the risks
that are not mitigated through the derivative transactions between the VIE and its external counterparty. In other
instances, we have entered into derivative transactions with the counterparty to protect the counterparty from risks
absorbed through derivative transactions with the VIEs. See Note 18 for additional information regarding the accounting
for derivatives.
Our exposures based on the fair value of derivative instruments with external counterparties related to consolidated
VIEs that support our securitization transactions were as follows (in millions):
December 31, 2012 December 31, 2011
Derivative
Asset
Derivative
Liability
Derivative
Asset
Derivative
Liability
Derivatives of the VIEs $ 4 $ 134 $157 $ 97
Derivatives related to the VIEs 74 63 81 63
Total exposures related to the VIEs $ 78 $ 197 $238 $160
Derivative expense/(income) related to consolidated VIEs that support Ford Credit's securitization programs for the
years ended December 31 was as follows (in millions):
2012 2011 2010
VIEs $ 227 $ 31 $ 225
Related to the VIEs (5) 11 (73)
Total derivative expense/(income) related to the VIEs $ 222 $ 42 $ 152
VIEs of Which We are Not the Primary Beneficiary
We have an investment in Forso Nordic AB, a joint venture determined to be a VIE of which we are not the primary
beneficiary. The joint venture provides consumer and dealer financing in its local markets and is financed by external debt
and additional subordinated debt provided by the joint venture partner. The operating agreement indicates that the power
to direct economically significant activities is shared with the joint venture partner, and the obligation to absorb losses or
right to receive benefits resides primarily with the joint venture partner. Our investment in the joint venture is accounted
for as an equity method investment and is included in Equity in net assets of affiliated companies. Our maximum
exposure to any potential losses associated with this VIE is limited to our equity investment, and amounted to $71 million
at December 31, 2012 and 2011, respectively.
For more information visit www.annualreport.ford.com