Ford 2013 Annual Report Download - page 36

34 Ford Motor Company | 2013 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Ford Credit’s receivables, including finance receivables and operating leases, at December 31 were as follows (in
billions):
2013 2012
Net Receivables
Finance receivables - North America
Consumer - Retail financing $ 40.9 $39.5
Non-Consumer
Dealer financing (a) 22.1 19.5
Other 1.0 1.1
Total finance receivables - North America (b) 64.0 60.1
Finance receivables - International
Consumer - Retail financing 10.8 9.0
Non-Consumer
Dealer financing (a) 8.3 7.5
Other 0.4 0.4
Total finance receivables - International (b) 19.5 16.9
Unearned interest supplements (1.5) (1.5)
Allowance for credit losses (0.4) (0.4)
Finance receivables, net 81.6 75.1
Net investment in operating leases (b) (c) 18.3 13.6
Total net receivables $ 99.9 $88.7
Managed Receivables
Total net receivables $ 99.9 $88.7
Unearned interest supplements and residual support 3.1 2.6
Allowance for credit losses 0.4 0.4
Other, primarily accumulated supplemental depreciation — —
Total managed receivables (d) $ 103.4 $91.7
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(a) Dealer financing primarily includes wholesale loans to dealers to finance the purchase of vehicle inventory.
(b) At December 31, 2013 and 2012, includes consumer receivables before allowance for credit losses of $27.7 billion and
$29.3 billion, respectively, and non-consumer receivables before allowance for credit losses of $23.9 billion and $21.6 billion, respectively, that have
been sold for legal purposes in securitization transactions but continue to be reported in Ford Credit’s consolidated financial statements. In
addition, at December 31, 2013 and 2012, includes net investment in operating leases before allowance for credit losses of $8.1 billion and
$6.3 billion, respectively, that have been included in securitization transactions but continue to be reported in Ford Credit’s financial statements.
The receivables and net investment in operating leases are available only for payment of the debt issue by, and other obligations of, the
securitization entities that are parties to those securitization transactions; they are not available to pay Ford Credit’s other obligations or the claims
of its other creditors. Ford Credit holds the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of,
the securitization entities that are parties to those securitization transactions. See Note 16 of the Notes to the Financial Statements for more
information regarding securitization transactions.
(c) Beginning in the fourth quarter, Ford Credit changed its accounting method to include unearned interest supplements and residual support in Net
investment in operating leases. These amounts are amortized to Depreciation on vehicles subject to operating leases. The prior period was revised
to conform to current year presentation. There is no change to profit before income tax or net income.
(d) The prior period was revised to conform to current year presentation.
Managed receivables at December 31, 2013 increased from year-end 2012, driven by increases in non-consumer and
consumer finance receivables in all operations and increases in leasing in North America.