Ford 2013 Annual Report Download - page 121

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Ford Motor Company | 2013 Annual Report 119
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15. DEBT AND COMMITMENTS (Continued)
The following table shows the assets and liabilities related to our asset-backed debt arrangements that are included
on our financial statements for the years ended December 31 (in billions):
2013
Cash and Cash
Equivalents
Finance
Receivables, Net and
Net Investment in
Operating Leases
Related
Debt
VIEs (a)
Finance receivables $ 3.8 $ 45.8 $35.1
Net investment in operating leases 0.4 8.1 5.6
Total $ 4.2 $ 53.9 $40.7
Non-VIE
Finance receivables (b) $ 0.2 $ 5.6 $ 5.2
Total securitization transactions
Finance receivables $ 4.0 $ 51.4 $40.3
Net investment in operating leases 0.4 8.1 5.6
Total $ 4.4 $ 59.5 $45.9
2012
Cash and Cash
Equivalents
Finance
Receivables, Net and
Net Investment in
Operating Leases
Related
Debt
VIEs (a)
Finance receivables $ 2.5 $ 47.5 $36.0
Net investment in operating leases 0.4 6.3 4.2
Total $ 2.9 $ 53.8 $40.2
Non-VIE
Finance receivables (b) $ 0.1 $ 3.5 $ 3.3
Total securitization transactions
Finance receivables $ 2.6 $ 51.0 $39.3
Net investment in operating leases 0.4 6.3 4.2
Total $ 3.0 $ 57.3 $43.5
__________
(a) Includes assets to be used to settle liabilities of the consolidated VIEs. See Note 11 for additional information on Financial Services sector VIEs.
(b) Certain notes issued by the VIEs to affiliated companies served as collateral for accessing the ECB open market operations program. This external
funding of $145 million at December 31, 2012 was not reflected as debt of the VIEs and is excluded from the table above, but was included on our
consolidated debt. The finance receivables backing this external funding are included in the table above.
Financial Services sector asset-backed debt also included $0 and $64 million at December 31, 2013 and 2012,
respectively, that is secured by property.
Credit Facilities
At December 31, 2013, Ford Credit and its majority-owned subsidiaries had $1.6 billion of contractually-committed
unsecured credit facilities with financial institutions, including FCE Bank plc’s (“FCE”) £720 million (equivalent to
$1.2 billion at December 31, 2013) which matures in 2016. At December 31, 2013, $1.2 billion was available for use. The
FCE Credit Agreement contains certain covenants, including an obligation for FCE to maintain its ratio of regulatory
capital to risk-weighted assets at no less than the applicable regulatory minimum, and for the support agreement between
FCE and Ford Credit to remain in full force and effect (and enforced by FCE to ensure that its net worth is maintained at
no less than $500 million). In addition to customary payment, representation, bankruptcy, and judgment defaults, the FCE
Credit Agreement contains cross-payment and cross-acceleration defaults with respect to other debt.
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