Ford 2013 Annual Report Download - page 119

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Ford Motor Company | 2013 Annual Report 117
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15. DEBT AND COMMITMENTS (Continued)
In December 2013, we elected to terminate the conversion rights of holders under the 2036 Convertible Notes in
accordance with their terms effective as of the close of business on January 21, 2014.
Liability, equity, and if-converted components of our Convertible Notes are summarized as follows (in millions):
Total Effective Interest Rate
December 31,
2013
December 31,
2012
December 31,
2013
December 31,
2012
Liability component
4.25% Debentures due November 15, 2016 $ 768 $768 9.2% 9.2%
4.25% Debentures due November 15, 2016 (underwriter option) 115 115 8.6% 8.6%
Subtotal Convertible Debt due November 15, 2016 883 883
4.25% Debentures due December 15, 2036 25 25 10.5% 10.5%
Unamortized discount (110)(142)
Net carrying amount $ 798 $766
Equity component of outstanding debt (a) $ (225) $ (225)
Share value in excess of principal value, if converted (b) 673 384
__________
(a) Recorded in Capital in excess of par value of stock.
(b) Based on share price of $15.43 and $12.95 as of December 31, 2013 and 2012, respectively.
We recognized interest cost on our Convertible Notes as follows (in millions):
2013 2012 2011
Contractual interest coupon $ 39 $ 38 $ 38
Amortization of discount 32 30 27
Total interest cost on Convertible Notes $ 71 $ 68 $ 65
DOE ATVM Incentive Program
In September 2009, we entered into a Loan Arrangement and Reimbursement Agreement with the DOE, pursuant to
which the DOE agreed to (i) arrange a 13-year multi-draw term loan facility under the ATVM Program in the aggregate
principal amount of up to $5.9 billion, (ii) designate us as a borrower under the ATVM Program, and (iii) cause the Federal
Financing Bank to enter into the Note Purchase Agreement for the purchase of notes to be issued by us evidencing such
loans. The proceeds of the ATVM loan have been used to finance certain costs for fuel efficient, advanced technology
vehicles. The principal amount of the ATVM loan bears interest at a blended rate based on the U.S. Treasury yield curve
at the time each draw was made (with the weighted-average interest rate on all such draws still outstanding being about
2.3% per annum).
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