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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 137
NOTE 19. DEBT AND COMMITMENTS (Continued)
Debt outstanding at December 31 is shown below (in millions, except percentages):
Interest Rates
Interest RatesInterest Rates
Interest Rates
Average Contractual (a
Average Contractual (aAverage Contractual (a
Average Contractual (a)
)))
Average Effective (b)
Average Effective (b)Average Effective (b)
Average Effective (b)
Automotive Sector
Automotive SectorAutomotive Sector
Automotive Sector
2010
20102010
2010
2009
20092009
2009
2010
20102010
2010
2009
20092009
2009
2010
20102010
2010
2009
20092009
2009
Debt payable within one year
Debt payable within one yearDebt payable within one year
Debt payable within one year
Short-term (c) (d)................................................................
................................
$ 860 $ 502 1.5% 2.6% 1.5% 2.6%
Long-term payable within one year
Public unsecured debt securities................................
................................
— 334
Notes due to UAW VEBA Trust unsecured portion
................................
— 859
Secured term loan ................................................................
................................
140 77
Secured revolving loan................................
................................
838 —
Other debt (c)................................................................
................................
211 199
Unamortized discount ................................
................................
— (333)
Total debt payable within one year................................
................................
2,049 1,638
Long
LongLong
Long-
---term debt payable after one year
term debt payable after one yearterm debt payable after one year
term debt payable after one year
Public unsecured debt securities................................
................................
5,260 5,260
Convertible notes................................................................
................................
908 3,454
Subordinated convertible debentures ................................
................................
2,985 3,124
Secured term loan ................................................................
................................
3,946 5,184
Secured revolving loan................................
................................
— 7,527
Notes due to UAW VEBA Trust
Unsecured portion ................................
................................
— 6,720
Secured portion ................................................................
................................
— 3,000
U.S. Department of Energy ("DOE") loans
................................
2,752 1,221
Other debt (e) ................................................................
................................
1,457 727
Unamortized discount ................................
................................
(280) (4,245)
Total long-term debt payable after one year (f)
................................
17,028 31,972 4.7% 4.9% 6.1% 5.4%
Total Automotive sector................................
................................
$ 19,077 $ 33,610
Fair value of debt................................................................
................................
$ 19,260 $ 30,492
Financial Services Sector
Financial Services SectorFinancial Services Sector
Financial Services Sector
Short
ShortShort
Short
-
---
term debt
term debt term debt
term debt
Asset-backed commercial paper................................
................................
$ 6,634 $ 6,369
Other asset-backed short-term debt ................................
................................
1,447 4,482
Ford Interest Advantage (g) ................................
................................
4,525 3,680
Other short-term debt................................
................................
801 1,088
Total short-term debt ................................
................................
13,407 15,619 1.4% 2.0% 1.4% 2.0%
Long
LongLong
Long-
---term debt
term debt term debt
term debt
Unsecured debt
Notes payable within one year ................................
................................
9,524 7,338
Notes payable after one year ................................
................................
26,390 33,888
Asset-backed debt
Notes payable within one year ................................
................................
16,684 18,962
Notes payable after one year ................................
................................
19,208 23,163
Unamortized discount ................................
................................
(403) (530)
Fair value adjustment (h) ................................
................................
302 231
Total long-term debt................................
................................
71,705 83,052 4.6% 5.0% 5.0% 5.4%
Total Financial Services sector................................
................................
$ 85,112 $ 98,671
Fair value of debt................................................................
................................
$ 88,569 $ 100,231
Total Automotive and Financial Services sectors
................................
$ 104,189 $ 132,281
Intersector elimination (i)................................
................................
(201) (646)
Total Company
Total CompanyTotal Company
Total Company ................................
................................
$ 103,988 $ 131,635
__________
(a) Average contractual rates reflect the stated contractual interest rate; excludes amortization of discounts, premiums, and issuance fees.
(b) Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees.
(c) Includes debt we owed to unconsolidated affiliated companies of $386 million and $177 million (short-term of $382 million and $174 million, and long-term payable
within one year of $4 million and $3 million) at December 31, 2010 and 2009, respectively.
(d) Includes Export-Import Bank of the United States ("U.S. Ex-Im Bank") secured loan of $250 million at December 31, 2010; see discussion below for additional detail.
(e) Includes European Investment Bank ("EIB") loan of $699 million at December 31, 2010; see discussion below for additional detail.
(f) The higher average effective rate in 2010 is primarily due to VEBA Notes (repaid in 2010) and 2016 Convertible Notes (substantially converted to equity in 2010).
(g) The Ford Interest Advantage program consists of Ford Credit's floating rate demand notes.
(h) Adjustments related to designated fair value hedges of unsecured debt.
(i) Debt related to Ford's acquisition of Ford Credit debt securities; see Note 1 for additional detail.