Ford 2006 Annual Report Download - page 29

Management’s Discussion and Analysis of Financial Condition and Results of Operations
 'HFHPEHU
   
27
Changes in Automotive gross cash for the last three years are summarized below (in billions):
   
*URVVFDVKDWHQGRISHULRG      
*URVVFDVKDWEHJLQQLQJRISHULRG      
7RWDOFKDQJHLQJURVVFDVK      
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$XWRPRWLYHLQFRPHORVVEHIRUHLQFRPHWD[HV      
6SHFLDOLWHPV      
&DSLWDOH[SHQGLWXUHV       
'HSUHFLDWLRQDQGVSHFLDOWRROVDPRUWL]DWLRQ      
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2WKHUE    
7RWDORSHUDWLQJUHODWHGFDVKIORZV      
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1HWHIIHFWRI9(%$RQJURVVFDVK       
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$FTXLVLWLRQVDQGGLYHVWLWXUHV       
'LYLGHQGVSDLGWRVKDUHKROGHUV       
1HWSURFHHGVIURPSD\PHQWVRQ$XWRPRWLYHVHFWRUGHEW      
2WKHUG    ಧ
7RWDOFKDQJHLQJURVVFDVK  
__________
(a) In 2006, working capital changes reflected the impact of lower production volumes on accounts payable, the effect on inventory of several new
product launches at year end, and changes in our value-added tax receivables collection process in Europe.
(b) Primarily expense and payment timing differences for items such as pension and OPEB, marketing, and warranty.
(c) Primarily dividends received from Ford Credit, excluding proceeds from Financial Services sector divestitures paid to the Automotive sector.
Beginning in 2007, Ford Credit will suspend its regular dividend payments.
(d) In 2006, primarily proceeds from tax refunds (an inflow of about $300 million), the net issuance of Ford Common Stock under employee savings
plans (an inflow of about $200 million), and dividends to minority shareholders of consolidated subsidiaries (an outflow of about $200 million).
Shown in the table below is a reconciliation between financial statement Cash flows from operating activities of
continuing operations and operating-related cash flows (calculated as shown in the table above), for the last three years
(in billions):
   
&DVKIORZVIURPRSHUDWLQJDFWLYLWLHVRIFRQWLQXLQJRSHUDWLRQV       
,WHPVLQFOXGHGLQRSHUDWLQJUHODWHGFDVKIORZV   
&DSLWDOH[SHQGLWXUHV       
1HWWUDQVDFWLRQVEHWZHHQ$XWRPRWLYHDQG)LQDQFLDO6HUYLFHVVHFWRUV       
,WHPVQRWLQFOXGHGLQRSHUDWLQJUHODWHGFDVKIORZV   
&DVKLPSDFWRI-REV%DQN%HQHILWVDQGVHSDUDWLRQSURJUDPV        ಧ
1HWVDOHVSXUFKDVHVRIWUDGLQJVHFXULWLHV       
3HQVLRQFRQWULEXWLRQV       
9(%$FDVKIORZVದ QHWUHLPEXUVHPHQWIRUEHQHILWVSDLGFRQWULEXWLRQVWR9(%$        
2WKHU    ಧ     
2SHUDWLQJUHODWHGFDVKIORZV       
________
* Primarily payables and receivables between the sectors in the normal course of business.
Debt and Net Cash. At December 31, 2006, our Automotive sector had total debt of $30 billion, compared with
$17.9 billion a year ago. The increase in debt primarily reflected $4.95 billion of unsecured convertible debt and $7 billion
of secured bank financing that we completed in December 2006. For more information on the nearly $12 billion of new
financing, see Note 15 of the Notes to the Financial Statements.
At December 31, 2006, our Automotive sector had net cash (defined as gross cash less total debt) of $3.9 billion,
compared with $7.2 billion at the end of 2005.