Ford 2013 Annual Report Download - page 61

Ford Motor Company | 2013 Annual Report 59
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
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 to
facilitate adequate supply of these materials and services. These arrangements may contain fixed or minimum quantity
purchase requirements. “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, 2013 (in millions):
Payments Due by Period
2014 2015 - 2016 2017 - 2018 2019 and
Thereafter Total
Automotive Sector
On-balance sheet
Long-term debt (a) (b) (excluding capital leases) $ 686 $4,276 $1,678 $8,701 $ 15,341
Interest payments relating to long-term debt (c) 681 1,218 1,030 7,663 10,592
Capital leases 11 16 9 238
Pension funding (d) 354 860 — — 1,214
Off-balance sheet
Purchase obligations 1,800 1,690 926 958 5,374
Operating leases 199 296 153 134 782
Total Automotive sector 3,731 8,356 3,796 17,458 33,341
Financial Services Sector
On-balance sheet
Long-term debt (a) (b) (excluding capital leases) 21,811 37,833 16,300 8,054 83,998
Interest payments relating to long-term debt (c) 2,441 3,120 1,497 1,544 8,602
Capital leases 1 — — — 1
Off-balance sheet
Purchase obligations 25 3 2 — 30
Operating leases 47 81 45 18 191
Total Financial Services sector 24,325 41,037 17,844 9,616 92,822
Total Company $ 28,056 $49,393 $21,640 $27,074 $126,163
__________
(a) Amount includes, prior to adjustment noted above, $695 million for the Automotive sector and $21,812 million for the Financial Services sector for
the current portion of long-term debt. See Note 15 of the Notes to the Financial Statements for additional discussion.
(b) Automotive sector excludes unamortized debt discounts/premiums of $(255) million. Financial Services sector excludes unamortized debt discounts
of $(91) million and adjustments of $103 million related to designated fair value hedges of the debt.
(c) Excludes amortization of debt discounts/premiums.
(d) Amounts represent our estimate of contractually obligated deficit contributions to U.K. plans. See Note 14 for further information regarding our
expected 2014 pension contributions and funded status.
The amount of unrecognized tax benefits for 2013 of $1.6 billion (see Note 22 of the Notes to the Financial
Statements for additional discussion) 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 reasonably be
estimated.
For additional information regarding operating lease obligations, pension and OPEB obligations, and long-term debt,
see Notes 7, 14, and 15, respectively, of the Notes to the Financial Statements.
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