Ford 2014 Annual Report Download - page 71

Item 7. 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):
2014 2013
Net Receivables
Finance receivables - North America
Consumer - Retail financing $ 44.1 $40.9
Non-Consumer
Dealer financing (a) 22.5 22.1
Other 1.0 1.0
Total finance receivables - North America (b) 67.6 64.0
Finance receivables - International
Consumer - Retail financing 11.8 10.8
Non-Consumer
Dealer financing (a) 9.3 8.3
Other 0.3 0.4
Total finance receivables - International (b) 21.4 19.5
Unearned interest supplements (1.8) (1.5)
Allowance for credit losses (0.3) (0.4)
Finance receivables, net 86.9 81.6
Net investment in operating leases (b) 21.5 18.3
Total net receivables $ 108.4 $99.9
Managed Receivables
Total net receivables $ 108.4 $99.9
Unearned interest supplements and residual support 3.9 3.1
Allowance for credit losses 0.4 0.4
Other, primarily accumulated supplemental depreciation 0.1 —
Total managed receivables $ 112.8 $ 103.4
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(a) Dealer financing primarily includes wholesale loans to dealers to finance the purchase of vehicle inventory.
(b) At December 31, 2014 and 2013, includes consumer receivables before allowance for credit losses of $24.4 billion and $27.7 billion, respectively,
and non-consumer receivables before allowance for credit losses of $21.8 billion and $23.9 billion, respectively, that have been sold for legal
purposes in securitization transactions but continue to be reported in Ford Credit’s financial statements. In addition, at December 31, 2014 and
2013, includes net investment in operating leases before allowance for credit losses of $9.6 billion and $8.1 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 15 of the Notes to the Financial Statements for more information regarding securitization transactions.
Managed receivables at December 31, 2014 increased from year-end 2013, driven by increases in consumer and non-
consumer finance receivables in all operations and operating leases in North America.
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