Ford 2014 Annual Report Download - page 75

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Shown below is a reconciliation between financial statement Net cash provided by/(used in) operating activities and
operating-related cash flows (calculated as shown in the table above), as of the dates shown (in billions):
2014 2013 2012
Net cash provided by/(used in) operating activities $ 8.8 $ 7.7 $ 6.3
Items included in operating-related cash flows
Capital spending (7.4)(6.6) (5.5)
Proceeds from the exercise of stock options 0.2 0.3 —
Net cash flows from non-designated derivatives 0.2 (0.3) (0.8)
Items not included in operating-related cash flows
Separation payments 0.2 0.3 0.4
Funded pension contributions 1.5 5.0 3.4
Tax refunds, tax payments, and tax receipts from affiliates (0.2)(0.3) (0.1)
Settlement of outstanding obligation with affiliates — — (0.3)
Other 0.3 — —
Operating-related cash flows $ 3.6 $ 6.1 $ 3.4
Credit Agreement. Lenders under our Second Amended and Restated Credit Agreement dated as of April 30, 2014
(the “revolving credit facility”) have commitments to us totaling $12.2 billion, with about $9 billion maturing on
April 30, 2019 and about $3 billion maturing on April 30, 2017. We have allocated $2 billion of commitments to Ford
Credit on an irrevocable and exclusive basis to support its liquidity. Any borrowings by Ford Credit under the revolving
credit facility would be guaranteed by us.
The revolving credit facility is unsecured and free of material adverse change conditions to borrowing, restrictive
financial covenants (for example, interest or fixed charge coverage ratio, debt-to-equity ratio, and minimum net worth
requirements), and credit rating triggers that could limit our ability to obtain funding. The revolving credit facility contains a
liquidity covenant that requires us to maintain a minimum of $4 billion in aggregate of domestic cash, cash equivalents,
and loaned and marketable securities and/or availability under the revolving credit facility. If our senior, unsecured, long-
term debt does not maintain at least two investment grade ratings from Fitch, Moody’s, and S&P (each as defined under
“Total Company” below), the guarantees of certain subsidiaries will be required.
At December 31, 2014, the utilized portion of the revolving credit facility was $58 million, representing amounts
utilized as letters of credit.
U.S. Department of Energy (“DOE”) Advanced Technology Vehicle Manufacturer (“ATVM”) Incentive Program. In
September 2009, we entered into a Loan Arrangement and Reimbursement Agreement (“Arrangement Agreement”) with
the DOE, under which we borrowed through multiple draws $5.9 billion to finance certain costs for fuel-efficient,
advanced-technology vehicles. At December 31, 2014, an aggregate of $4.4 billion was outstanding. 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 being about 2.3% per annum). The ATVM loan is
repayable in equal quarterly installments of $148 million, which began in September 2012 and will end in June 2022.
European Investment Bank (“EIB”) Loans. On December 21, 2009, Ford Romania, our operating subsidiary in
Romania, entered into a credit facility for an aggregate amount of €400 million (equivalent to $486 million at
December 31, 2014) with the EIB (the “EIB Romania Facility”), and on July 12, 2010, Ford Motor Company Limited, our
operating subsidiary in the United Kingdom, entered into a credit facility for an aggregate amount of £450 million
(equivalent to $701 million at December 31, 2014) with the EIB (the “EIB United Kingdom Facility”). The facilities were
fully drawn at December 31, 2014. Loans under the EIB Romania Facility and the EIB United Kingdom Facility bear
interest at a fixed rate of 4.44% and 4% per annum, respectively, and mature on March 31, 2015 and September 11,
2015, respectively.
Other Automotive Credit Facilities. At December 31, 2014, we had $822 million of local credit facilities available to
non-U.S. Automotive affiliates, of which $175 million had been utilized.
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