Ford 2006 Annual Report Download - page 26
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Please find page 26 of the 2006 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.Management’s Discussion and Analysis of Financial Condition and Results of Operations
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The following table shows worldwide credit losses net of recoveries ("charge-offs") for Ford Credit for the various
categories of financing during the periods indicated. The loss-to-receivables ratios, which equal charge-offs divided by
the average amount of receivables outstanding for the period, are shown below for Ford Credit's on-balance sheet and
managed portfolios.
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* Reacquired receivables reflect the amount of receivables that resulted from the accounting consolidation of Ford Credit's FCAR Owner Trust retail
securitization program ("FCAR") in the second quarter of 2003.
Charge-offs and loss-to-receivable ratios for Ford Credit's on-balance sheet, securitized off-balance sheet, and
managed portfolios declined from a year ago, primarily reflecting fewer repossessions. These improvements resulted
from a higher quality retail installment and lease portfolio, and enhancements to Ford Credit's collection practices.
Shown below is an analysis of Ford Credit's allowance for credit losses and its allowance for credit losses as a
percentage of end-of-period receivables (net finance receivables and net investment in operating leases) for its on-
balance sheet portfolio for the years ended December 31 (dollar amounts in billions). During 2006, Ford Credit updated
its analysis of contract liquidation data which affected the level of required reserves for credit losses. In addition, Ford
Credit implemented refinements to certain modeling techniques that are used in determining the allowance for credit
losses.
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