x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the
quarterly period ended March
31,
2006
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Delaware
|
38-1612444
|
(State
of incorporation)
|
(I.R.S.
employer identification no.)
|
One
American Road, Dearborn, Michigan
|
48126
|
(Address
of principal executive offices)
|
(Zip
code)
|
Accelerated
filero
|
Non-accelerated
filerþ
|
·
|
Transactions
that we designated as fair value hedges involved interest rate
swaps
hedging the back-end of debt instruments or involved longer-than-normal
settlement periods.
|
·
|
We
paid or received fees when entering into a derivative contract
or upon
changing counterparties.
|
·
|
Interest
rate swaps included terms that did not exactly match the terms
of the
debt, including prepayment optionality.
|
Net
Income
|
|||||||
First
Quarter
2006
|
First
Quarter
2005
|
||||||
Previously
reported
|
$
|
479
|
$
|
710
|
|||
Pre-tax
adjustments:
|
|||||||
Fair
value interest rate swaps
|
(331
|
)
|
(572
|
)
|
|||
Out-of-period
adjustments
|
(38
|
)
|
2
|
||||
Total
pre-tax adjustments
|
(369
|
)
|
(570
|
)
|
|||
Related
tax effects - provision for / (benefit from)
|
(138
|
)
|
(213
|
)
|
|||
Net
after -tax adjustments
|
(231
|
)
|
(357
|
)
|
|||
Restated
|
$
|
248
|
$
|
353
|
First
Quarter
|
|||||||
Restated
2006
|
Restated
2005
|
||||||
(Unaudited)
|
|||||||
Financing
revenue
|
|||||||
Operating
leases
|
$
|
1,330
|
$
|
1,340
|
|||
Retail
|
907
|
1,077
|
|||||
Interest
supplements and other support costs earned from affiliated
companies
|
776
|
843
|
|||||
Wholesale
|
599
|
251
|
|||||
Other
|
54
|
56
|
|||||
Total
financing revenue
|
3,666
|
3,567
|
|||||
Depreciation
on vehicles subject to operating leases
|
(1,181
|
)
|
(1,077
|
)
|
|||
Interest
expense
|
(1,793
|
)
|
(1,673
|
)
|
|||
Net
financing margin
|
692
|
817
|
|||||
Other
revenue
|
|||||||
Investment
and other income related to sales of
receivables (Note 5)
|
183
|
458
|
|||||
Insurance
premiums earned, net
|
51
|
52
|
|||||
Other
income/(expense)
|
22
|
(155
|
)
|
||||
Total
financing margin and other revenue
|
948
|
1,172
|
|||||
Expenses
|
|||||||
Operating
expenses
|
519
|
528
|
|||||
Provision
for credit losses (Note 4)
|
5
|
117
|
|||||
Insurance
expenses
|
42
|
36
|
|||||
Total
expenses
|
566
|
681
|
|||||
Income
from continuing operations before income taxes
|
382
|
491
|
|||||
Provision
for income taxes
|
134
|
174
|
|||||
Income
from continuing operations before minority interests
|
248
|
317
|
|||||
Minority
interests in net income of subsidiaries
|
—
|
1
|
|||||
Income
from continuing operations
|
248
|
316
|
|||||
Income
from discontinued operations
|
—
|
37
|
|||||
Net
income
|
$
|
248
|
$
|
353
|
Restated
March
31,
|
Restated
December
31,
|
||||||
2006
|
2005
|
||||||
(Unaudited)
|
|||||||
ASSETS
|
|||||||
Cash
and cash equivalents (Note 1)
|
$
|
10,949
|
$
|
14,798
|
|||
Marketable
securities
|
5,686
|
3,810
|
|||||
Finance
receivables, net (Note 2)
|
108,056
|
109,876
|
|||||
Net
investment in operating leases (Note 3)
|
23,679
|
22,213
|
|||||
Retained
interest in securitized assets (Note 5)
|
1,399
|
1,420
|
|||||
Notes
and accounts receivable from affiliated companies
|
1,131
|
1,235
|
|||||
Derivative
financial instruments (Note 9)
|
2,236
|
2,547
|
|||||
Other
assets
|
6,090
|
6,363
|
|||||
Total
assets
|
$
|
159,226
|
$
|
162,262
|
|||
LIABILITIES
AND STOCKHOLDER'S EQUITY
|
|||||||
Liabilities
|
|||||||
Accounts
payable
|
|||||||
Customer
deposits, dealer reserves and other
|
$
|
1,668
|
$
|
1,904
|
|||
Affiliated
companies
|
966
|
794
|
|||||
Total
accounts payable
|
2,634
|
2,698
|
|||||
Debt
(Note 7)
|
130,737
|
133,446
|
|||||
Deferred
income taxes
|
9,111
|
9,276
|
|||||
Derivative
financial instruments (Note 9)
|
634
|
680
|
|||||
Other
liabilities and deferred income
|
4,653
|
4,755
|
|||||
Total
liabilities
|
147,769
|
150,855
|
|||||
Minority
interests in net assets of subsidiaries
|
3
|
3
|
|||||
Stockholder's
equity
|
|||||||
Capital
stock, par value $100 a share, 250,000 shares authorized, issued
and
outstanding
|
25
|
25
|
|||||
Paid-in
surplus (contributions by stockholder)
|
5,117
|
5,117
|
|||||
Accumulated
other comprehensive income
|
443
|
391
|
|||||
Retained
earnings (Note 8)
|
5,869
|
5,871
|
|||||
Total
stockholder's equity
|
11,454
|
11,404
|
|||||
Total
liabilities and stockholder's equity
|
$
|
159,226
|
$
|
162,262
|
First
Quarter
|
|||||||
Restated
2006
|
Restated
2005
|
||||||
(Unaudited)
|
|||||||
Cash
flows from operating activities of continuing
operations
|
|||||||
Net
income
|
$
|
248
|
$
|
353
|
|||
(Income)
related to discontinued operations
|
—
|
(37
|
)
|
||||
Provision
for credit losses
|
5
|
117
|
|||||
Depreciation
and amortization
|
1,168
|
1,166
|
|||||
Net
(gain) on sales of finance receivables
|
(24
|
)
|
(38
|
)
|
|||
(Decrease)/increase
in deferred income taxes
|
(52
|
)
|
86
|
||||
Net
change in other assets
|
104
|
449
|
|||||
Net
change in other liabilities
|
(11
|
)
|
(220
|
)
|
|||
Net
(purchases)/sales of held for sale wholesale receivables
|
—
|
(357
|
)
|
||||
All
other operating activities
|
447
|
673
|
|||||
Net
cash provided by operating activities
|
1,885
|
2,192
|
|||||
Cash
flows from investing activities of continuing
operations
|
|||||||
Purchase
of finance receivables (other than wholesale)
|
(9,231
|
)
|
(11,027
|
)
|
|||
Collection
of finance receivables (other than wholesale)
|
9,244
|
10,410
|
|||||
Purchase
of operating lease vehicles
|
(4,502
|
)
|
(3,130
|
)
|
|||
Liquidation
of operating lease vehicles
|
1,875
|
2,055
|
|||||
Net
change in wholesale receivables
|
(608
|
)
|
(1,255
|
)
|
|||
Net
change in retained interest in securitized assets
|
135
|
259
|
|||||
Net
change in notes receivable from affiliated companies
|
82
|
129
|
|||||
Proceeds
from sales of receivables
|
2,540
|
9,739
|
|||||
Purchases
of marketable securities
|
(4,996
|
)
|
(114
|
)
|
|||
Proceeds
from sales and maturities of marketable securities
|
3,230
|
95
|
|||||
Net
change in derivatives
|
(82
|
)
|
1,055
|
||||
All
other investing activities
|
(18
|
)
|
(215
|
)
|
|||
Net
cash (used in)/provided by investing activities
|
(2,331
|
)
|
8,001
|
||||
Cash
flows from financing activities of continuing
operations
|
|||||||
Proceeds
from issuance of long-term debt
|
9,919
|
5,233
|
|||||
Principal
payments on long-term debt
|
(14,174
|
)
|
(15,490
|
)
|
|||
Change
in short-term debt, net
|
1,028
|
1,131
|
|||||
Cash
dividends paid
|
(250
|
)
|
(450
|
)
|
|||
All
other financing activities
|
(1
|
)
|
(31
|
)
|
|||
Net
cash (used in) financing activities
|
(3,478
|
)
|
(9,607
|
)
|
|||
Effect
of exchange rate changes on cash and cash equivalents
|
75
|
(163
|
)
|
||||
Total
cash flows from continuing operations
|
(3,849
|
)
|
423
|
||||
Cash
flows from discontinued operations
|
|||||||
Cash
flows from discontinued operations provided by operating
activities
|
—
|
71
|
|||||
Cash
flows from discontinued operations used in investing
activities
|
—
|
(66
|
)
|
||||
Net
(decrease)/increase in cash and cash equivalents
|
$
|
(3,849
|
)
|
$
|
428
|
||
Cash
and cash equivalents, beginning of period
|
$
|
14,798
|
$
|
12,668
|
|||
Cash
and cash equivalents of discontinued operations, beginning of
period
|
—
|
—
|
|||||
Change
in cash and cash equivalents
|
(3,849
|
)
|
428
|
||||
Less:
cash and cash equivalents of discontinued operations, end of
period
|
—
|
(5
|
)
|
||||
Cash
and cash equivalents, end of period
|
$
|
10,949
|
$
|
13,091
|
Restated
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Unaudited)
|
|||||||
Retail
|
$
|
64,609
|
$
|
66,940
|
|||
Wholesale
|
40,235
|
39,680
|
|||||
Other
|
4,474
|
4,648
|
|||||
Total
finance receivables, net of unearned income (a)(b)
|
109,318
|
111,268
|
|||||
Less:
Allowance for credit losses
|
(1,262
|
)
|
(1,392
|
)
|
|||
Finance
receivables, net
|
$
|
108,056
|
$
|
109,876
|
(a)
|
At
March 31, 2006 and December 31, 2005, includes $1.8 billion and
$1.6
billion, respectively, of primarily wholesale receivables with
entities
that are reported as consolidated subsidiaries of Ford. The consolidated
subsidiaries include dealerships that are partially owned by Ford
and
consolidated as VIEs and also certain overseas affiliates. The
associated
vehicles that are being financed by us are reported as inventory
on Ford's
balance sheet.
|
(b)
|
At
March 31, 2006 and December 31, 2005, includes $48.0 billion and
$44.7
billion, respectively, of receivables that have been sold for legal
purposes to consolidated securitization SPEs and are available
only for
repayment of debt issued by those entities, and to pay other
securitization investors and other participants; they are not available
to
pay our other obligations or the claims of our other
creditors.
|
|
March
31,
|
December
31,
|
|||||
2006
|
2005
|
||||||
(Unaudited)
|
|||||||
Vehicles,
at cost, including initial direct costs (a)
|
$
|
29,948
|
$
|
28,460
|
|||
Less:
Accumulated depreciation
|
(6,083
|
)
|
(6,053
|
)
|
|||
Less:
Allowance for credit losses
|
(186
|
)
|
(194
|
)
|
|||
Net
investment in operating leases
|
$
|
23,679
|
$
|
22,213
|
(a)
|
At
March 31, 2006 and December 31, 2005, includes interests in operating
leases and the related vehicles (net of accumulated depreciation)
of $11.8
billion and $6.5 billion, respectively, that have been transferred
for
legal purposes to, or are held by or for the benefit of, consolidated
securitization SPEs and are available only for repayment of debt
issued by
those entities, and to pay other securitization investors and other
participants; they are not available to pay our other obligations
or the
claims of our other creditors.
|
First
Quarter
|
|||||||
Restated
2006
|
2005
|
||||||
(Unaudited)
|
|||||||
Balance,
beginning of period
|
$
|
1,586
|
$
|
2,434
|
|||
Provision
for credit losses
|
5
|
117
|
|||||
Deductions
|
|||||||
Charge-offs
|
228
|
311
|
|||||
Recoveries
|
(117
|
)
|
(130
|
)
|
|||
Net
charge-offs
|
111
|
181
|
|||||
Other
changes, principally amounts related to finance
receivables sold and translation adjustments
|
32
|
147
|
|||||
Net
deductions
|
143
|
328
|
|||||
Balance,
end of period
|
$
|
1,448
|
$
|
2,223
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Unaudited)
|
|||||||
Residual
interest in securitization transactions
|
$
|
1,076
|
$
|
1,094
|
|||
Restricted
cash held for benefit of securitization SPEs
|
196
|
199
|
|||||
Subordinated
securities
|
127
|
127
|
|||||
Retained
interest in securitized assets
|
$
|
1,399
|
$
|
1,420
|
First
Quarter
|
|||||||
Restated
2006
|
Restated
2005
|
||||||
(Unaudited)
|
|||||||
Servicing
fees
|
$
|
58
|
$
|
99
|
|||
Net
gain on sale of receivables
|
24
|
38
|
|||||
Income
on interest in sold wholesale receivables and retained
securities
|
8
|
116
|
|||||
Income
on residual interest and other
|
93
|
205
|
|||||
Investment
and other income related to sales of receivables
|
$
|
183
|
$
|
458
|
Interest
Rates
|
|||||||||||||||||||
Average
Contractual
(a)
|
Weighted-
Average
(b)
|
Restated
March
31,
|
Restated
December
31,
|
||||||||||||||||
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
||||||||||||||
(Unaudited)
|
|||||||||||||||||||
Short-term
debt
|
|||||||||||||||||||
Asset-backed
commercial paper (c)
|
4.4
|
%
|
4.3
|
%
|
$
|
22,351
|
$
|
21,736
|
|||||||||||
Other
asset-backed short-term debt (c)
|
4.2
|
%
|
—
|
1,156
|
—
|
||||||||||||||
Ford
Interest Advantage (d)
|
5.2
|
%
|
4.9
|
%
|
6,604
|
6,719
|
|||||||||||||
Commercial
paper - unsecured
|
4.9
|
%
|
4.8
|
%
|
702
|
1,041
|
|||||||||||||
Other
short-term debt (e)
|
5.3
|
%
|
5.8
|
%
|
2,138
|
2,325
|
|||||||||||||
Total
short-term debt
|
4.6
|
%
|
4.6
|
%
|
4.9
|
%
|
5.0
|
%
|
32,951
|
31,821
|
|||||||||
Long-term
debt
|
|||||||||||||||||||
Senior
indebtedness
|
|||||||||||||||||||
Notes
payable within one year
|
18,127
|
21,049
|
|||||||||||||||||
Notes
payable after one year (f)
|
55,597
|
62,614
|
|||||||||||||||||
Unamortized
discount
|
(56
|
)
|
(62
|
)
|
|||||||||||||||
Asset-backed
debt (g)
|
|||||||||||||||||||
Notes
payable within one year
|
9,137
|
5,357
|
|||||||||||||||||
Notes
payable after one year
|
14,981
|
12,667
|
|||||||||||||||||
Total
long-term debt (h)
|
5.6
|
%
|
5.9
|
%
|
5.0
|
%
|
5.1
|
%
|
97,786
|
101,625
|
|||||||||
Total
debt
|
5.4
|
%
|
5.6
|
%
|
5.0
|
%
|
5.1
|
%
|
$
|
130,737
|
$
|
133,446
|
(a) |
First
quarter 2006 and fourth quarter 2005 average contractual rates
exclude the
effects of interest rate swap agreements and facility
fees.
|
(b) |
First
quarter 2006 and fourth quarter 2005 weighted-average rates include
the
effects of interest rate swap agreements and facility
fees.
|
(c) |
Amounts
represent asset-backed commercial paper and other short-term debt
issued
by consolidated securitization SPEs and are payable out of collections
on
the finance receivables. This debt is the legal obligation of the
securitization SPEs.
|
(d) |
The
Ford Interest Advantage program consists of our floating rate demand
notes.
|
(e) |
Includes
$57 million and $52 million with affiliated companies at March
31, 2006
and December 31, 2005,
respectively.
|
(f) |
Includes
$153 million and $126 million with affiliated companies at March
31, 2006
and December 31, 2005,
respectively.
|
(g) |
Asset-backed
debt is issued by consolidated securitization SPEs and is payable
out of
collections on the finance receivables or interests in operating
leases
and the related vehicles transferred to the SPEs. This debt is
the legal
obligation of the securitization SPEs.
|
(h) |
Average
contractual and weighted-average interest rates for total long-term
debt
reflects the rates for both notes payable within one year and notes
payable after one year.
|
First
Quarter
|
|||||||
Restated
2006
|
Restated
2005
|
||||||
(Unaudited)
|
|||||||
Retained
earnings, beginning balance
|
$
|
5,871
|
$
|
6,725
|
|||
Net
income
|
248
|
353
|
|||||
Dividends
(a)
|
(250
|
)
|
(458
|
)
|
|||
Retained
earnings, ending balance
|
$
|
5,869
|
$
|
6,620
|
(a)
|
Dividends
for the first quarter of 2005 included the transfer of a Ford
Credit affiliate
to Ford,
with a net book value of $8
million.
|
First
Quarter
|
|||||||
Restated
2006
|
Restated
2005
|
||||||
(Unaudited)
|
|||||||
Net
income
|
$
|
248
|
$
|
353
|
|||
Other
comprehensive income
|
52
|
(119
|
)
|
||||
Total
comprehensive income
|
$
|
300
|
$
|
234
|
March
31, 2006
|
December
31, 2005
|
||||||||||||
Fair
Value
Assets
|
Fair
Value
Liabilities
|
Fair
Value
Assets
|
Fair
Value
Liabilities
|
||||||||||
(Unaudited)
|
|||||||||||||
Interest
rate swaps
|
$
|
1,193
|
$
|
82
|
$
|
1,657
|
$
|
96
|
|||||
Foreign
currency swaps
|
1,143
|
632
|
1,089
|
789
|
|||||||||
Forwards
and options (a)
|
—
|
20
|
6
|
—
|
|||||||||
Impact
of netting agreements
|
(100
|
)
|
(100
|
)
|
(205
|
)
|
(205
|
)
|
|||||
Total
derivative financial instruments
|
$
|
2,236
|
$
|
634
|
$
|
2,547
|
$
|
680
|
(a)
|
Includes
internal forward contracts between Ford Credit and an affiliated
company
|
Unallocated/Eliminations
|
|||||||||||||||||||
Restated
|
Restated
|
Restated
|
Restated
|
||||||||||||||||
North
|
Inter-
|
Unallocated
|
Effect
of
|
||||||||||||||||
America
|
national
|
Risk
|
Sales
of
|
Restated
|
Restated
|
||||||||||||||
Segment
|
Segment
|
Management
|
Receivables
|
Total
|
Total
|
||||||||||||||
(Unaudited)
|
|||||||||||||||||||
First
Quarter 2006
|
|||||||||||||||||||
Revenue
|
$
|
3,576
|
$
|
847
|
$
|
(354
|
)
|
$
|
(147
|
)
|
$
|
(501
|
)
|
$
|
3,922
|
||||
Income
|
|||||||||||||||||||
Income
from continuing operations before income taxes
|
532
|
204
|
(354
|
)
|
—
|
(354
|
)
|
382
|
|||||||||||
Provision
for income taxes
|
186
|
72
|
(124
|
)
|
—
|
(124
|
)
|
134
|
|||||||||||
Income
from continuing operations
|
346
|
132
|
(230
|
)
|
—
|
(230
|
)
|
248
|
|||||||||||
Other
disclosures
|
|||||||||||||||||||
Depreciation
on vehicles subject to operating leases
|
1,108
|
73
|
—
|
—
|
—
|
1,181
|
|||||||||||||
Interest
expense
|
1,537
|
432
|
—
|
(176
|
)
|
(176
|
)
|
1,793
|
|||||||||||
Provision
for credit losses
|
(18
|
)
|
23
|
—
|
—
|
—
|
5
|
||||||||||||
Finance
receivables (including net investment in operating leases)
|
111,692
|
36,910
|
40
|
(16,907
|
)
|
(16,867
|
)
|
131,735
|
|||||||||||
Total
assets
|
134,400
|
40,294
|
40
|
(15,508
|
)
|
(15,468
|
)
|
159,226
|
|||||||||||
First
Quarter 2005
|
|||||||||||||||||||
Revenue
|
$
|
3,801
|
$
|
997
|
$
|
(622
|
)
|
$
|
(254
|
)
|
$
|
(876
|
)
|
$
|
3,922
|
||||
Income
|
|||||||||||||||||||
Income
from continuing operations before income taxes
|
869
|
244
|
(622
|
)
|
—
|
(622
|
)
|
491
|
|||||||||||
Provision
for income taxes
|
308
|
85
|
(219
|
)
|
—
|
(219
|
)
|
174
|
|||||||||||
Income
from continuing operations
|
561
|
159
|
(404
|
)
|
—
|
(404
|
)
|
316
|
|||||||||||
Other
disclosures
|
|||||||||||||||||||
Depreciation
on vehicles subject to operating leases
|
980
|
97
|
—
|
—
|
—
|
1,077
|
|||||||||||||
Interest
expense
|
1,450
|
465
|
—
|
(242
|
)
|
(242
|
)
|
1,673
|
|||||||||||
Provision
for credit losses
|
102
|
15
|
—
|
—
|
—
|
117
|
|||||||||||||
Finance
receivables (including net investment in operating leases)
|
123,234
|
41,167
|
185
|
(39,329
|
)
|
(39,144
|
)
|
125,257
|
|||||||||||
Total
assets
|
148,255
|
44,732
|
185
|
(31,276
|
)
|
(31,091
|
)
|
161,896
|
·
|
Transactions
that we designated as fair value hedges involved interest rate
swaps
hedging the back-end of debt instruments or involved longer-than-normal
settlement periods.
|
·
|
We
paid or received fees when entering into a derivative contract
or upon
changing counterparties.
|
·
|
Interest
rate swaps included terms that did not exactly match the terms
of the
debt, including prepayment optionality.
|
·
|
The fair
value interest rate swaps adjustment resulted in a significant change
in Interest expense and Other income. As the interest rate swaps
are no
longer in a hedge relationship for accounting purposes, the mark-to-market
adjustment is recorded in Other income. This adjustment decreased
Other
income by $331 million and $572 million in the first quarters of 2006
and 2005, respectively. All net interest charges related to these
swaps
that were previously classified as Interest expense are
now classified as Other income. The reclassification amounts
increased Other income by $116 million and $247 million in the
first
quarter of 2006 and 2005, respectively. Interest expense was
increased by the same amounts.
|
· |
Certain
out-of-period adjustments were recorded that totaled $(38) million
and $2
million for the first quarter of 2006 and 2005,
respectively.
|
·
|
The
fair value interest rate swaps adjustment resulted in a decrease in
the debt value, since the debt is no longer in a hedge accounting
relationship. The fair value interest rate swaps adjustment also
impacted
Deferred income taxes.
|
·
|
The
fair value interest rate swaps adjustment resulted in an adjustment
to net
income and did not have any impact on cash. However, for cash flow
reporting, the cash flows relating to derivatives were
reclassified from Cash flows from operating activities to Cash flows
from investing activities.
|
·
|
Wholesale
receivables that were sold to off-balance sheet securitization
trusts were
determined to be held for sale. Therefore, cash flows associated
with loan
acquisitions and sales to trusts are reported as Net (purchases)/sales
of
held for sale wholesale receivables within Cash flows from operating
activities while cash flows from retained interests are reported
in Net
change in retained interest in securitized assets within Cash flows
from investing activities.
|
First
Quarter
|
|||||||||||||
2006
|
2005
|
||||||||||||
Previously
Reported
|
Restated
|
Previously
Reported
|
Restated
|
||||||||||
(Unaudited)
|
|||||||||||||
Financing
revenue
|
|||||||||||||
Operating
leases
|
$
|
1,330
|
$
|
1,330
|
$
|
1,358
|
$
|
1,340
|
|||||
Retail
|
907
|
907
|
1,070
|
1,077
|
|||||||||
Interest
supplements and other support costs earned from affiliated companies
|
776
|
776
|
843
|
843
|
|||||||||
Wholesale
|
599
|
599
|
251
|
251
|
|||||||||
Other
|
54
|
54
|
56
|
56
|
|||||||||
Total
financing revenue
|
3,666
|
3,666
|
3,578
|
3,567
|
|||||||||
Depreciation
on vehicles subject to operating leases
|
(1,181
|
)
|
(1,181
|
)
|
(1,077
|
)
|
(1,077
|
)
|
|||||
Interest
expense
|
(1,677
|
)
|
(1,793
|
)
|
(1,426
|
)
|
(1,673
|
)
|
|||||
Net
financing margin
|
808
|
692
|
1,075
|
817
|
|||||||||
Other
revenue
|
|||||||||||||
Investment
and other income related to sales of receivables
|
210
|
183
|
445
|
458
|
|||||||||
Insurance
premiums earned, net
|
51
|
51
|
52
|
52
|
|||||||||
Other
income/(expense)
|
237
|
22
|
170
|
(155
|
)
|
||||||||
Total
financing margin and other revenue
|
1,306
|
948
|
1,742
|
1,172
|
|||||||||
Expenses
|
|||||||||||||
Operating
expenses
|
519
|
519
|
528
|
528
|
|||||||||
Provision
for credit losses
|
(6
|
)
|
5
|
117
|
117
|
||||||||
Insurance
expenses
|
42
|
42
|
36
|
36
|
|||||||||
Total
expenses
|
555
|
566
|
681
|
681
|
|||||||||
Income
from continuing operations before income taxes
|
751
|
382
|
1,061
|
491
|
|||||||||
Provision
for income taxes
|
272
|
134
|
387
|
174
|
|||||||||
Income
from continuing operations before minority interests
|
479
|
248
|
674
|
317
|
|||||||||
Minority
interests in net income of subsidiaries
|
—
|
—
|
1
|
1
|
|||||||||
Income
from continuing operations
|
479
|
248
|
673
|
316
|
|||||||||
Income
from discontinued operations
|
—
|
—
|
37
|
37
|
|||||||||
Net
income
|
$
|
479
|
$
|
248
|
$
|
710
|
$
|
353
|
March
31,
|
December
31,
|
||||||||||||
2006
|
2005
|
||||||||||||
Previously
Reported
|
Restated
|
Previously
Reported
|
Restated
|
||||||||||
ASSETS
|
|||||||||||||
Cash
and cash equivalents
|
$
|
10,949
|
$
|
10,949
|
$
|
14,798
|
$
|
14,798
|
|||||
Marketable
securities
|
5,686
|
5,686
|
3,810
|
3,810
|
|||||||||
Finance
receivables, net
|
108,067
|
108,056
|
109,876
|
109,876
|
|||||||||
Net
investment in operating leases
|
23,679
|
23,679
|
22,213
|
22,213
|
|||||||||
Retained
interest in securitized assets
|
1,399
|
1,399
|
1,420
|
1,420
|
|||||||||
Notes
and accounts receivable from affiliated companies
|
1,131
|
1,131
|
1,235
|
1,235
|
|||||||||
Derivative
financial instruments
|
2,236
|
2,236
|
2,547
|
2,547
|
|||||||||
Other
assets
|
6,090
|
6,090
|
6,256
|
6,363
|
|||||||||
Total
assets
|
$
|
159,237
|
$
|
159,226
|
$
|
162,155
|
$
|
162,262
|
|||||
LIABILITIES
AND STOCKHOLDER'S EQUITY
|
|||||||||||||
Liabilities
|
|||||||||||||
Accounts
payable
|
|||||||||||||
Customer
deposits, dealer reserves and other
|
$
|
1,668
|
$
|
1,668
|
$
|
1,890
|
$
|
1,904
|
|||||
Affiliated
companies
|
966
|
966
|
794
|
794
|
|||||||||
Total
accounts payable
|
2,634
|
2,634
|
2,684
|
2,698
|
|||||||||
Debt
|
131,445
|
130,737
|
134,500
|
133,446
|
|||||||||
Deferred
income taxes
|
8,852
|
9,111
|
8,772
|
9,276
|
|||||||||
Derivative
financial instruments
|
634
|
634
|
680
|
680
|
|||||||||
Other
liabilities and deferred income
|
4,653
|
4,653
|
4,781
|
4,755
|
|||||||||
Total
liabilities
|
148,218
|
147,769
|
151,417
|
150,855
|
|||||||||
Minority
interests in net assets of subsidiaries
|
3
|
3
|
3
|
3
|
|||||||||
Stockholder's
equity
|
|||||||||||||
Capital
stock, par value $100 a share, 250,000 shares authorized, issued
and
outstanding
|
25
|
25
|
25
|
25
|
|||||||||
Paid-in
surplus (contributions by stockholder)
|
5,117
|
5,117
|
5,117
|
5,117
|
|||||||||
Accumulated
other comprehensive income
|
437
|
443
|
385
|
391
|
|||||||||
Retained
earnings
|
5,437
|
5,869
|
5,208
|
5,871
|
|||||||||
Total
stockholder's equity
|
11,016
|
11,454
|
10,735
|
11,404
|
|||||||||
Total
liabilities and stockholder's equity
|
$
|
159,237
|
$
|
159,226
|
$
|
162,155
|
$
|
162,262
|
First
Quarter 2006
|
|||||||
Previously
|
|||||||
Reported
|
Restated
|
||||||
(Unaudited)
|
|||||||
Cash
flows from operating activities of continuing
operations
|
|||||||
Net
income
|
$
|
479
|
$
|
248
|
|||
(Income)
related to discontinued operations
|
—
|
—
|
|||||
Provision
for credit losses
|
(6
|
)
|
5
|
||||
Depreciation
and amortization
|
1,168
|
1,168
|
|||||
Net
(gain) on sales of finance receivables
|
(24
|
)
|
(24
|
)
|
|||
Increase/(decrease)
in deferred income taxes
|
86
|
(52
|
)
|
||||
Net
change in other assets
|
143
|
104
|
|||||
Net
change in other liabilities
|
(144
|
)
|
(11
|
)
|
|||
All
other operating activities
|
14
|
447
|
|||||
Net
cash provided by operating activities
|
1,716
|
1,885
|
|||||
Cash
flows from investing activities of continuing
operations
|
|||||||
Purchase
of finance receivables (other than wholesale)
|
(8,279
|
)
|
(9,231
|
)
|
|||
Collection
of finance receivables (other than wholesale)
|
8,300
|
9,244
|
|||||
Purchase
of operating lease vehicles
|
(5,454
|
)
|
(4,502
|
)
|
|||
Liquidation
of operating lease vehicles
|
2,819
|
1,875
|
|||||
Net
change in wholesale receivables
|
(608
|
)
|
(608
|
)
|
|||
Net
change in retained interest in securitized assets
|
135
|
135
|
|||||
Net
change in notes receivable from affiliated companies
|
82
|
82
|
|||||
Proceeds
from sales of receivables
|
2,540
|
2,540
|
|||||
Purchases
of marketable securities
|
(4,996
|
)
|
(4,996
|
)
|
|||
Proceeds
from sales and maturities of marketable securities
|
3,230
|
3,230
|
|||||
Net
change in derivatives
|
—
|
(82
|
)
|
||||
All
other investing activities
|
(18
|
)
|
(18
|
)
|
|||
Net
cash (used in) investing activities
|
(2,249
|
)
|
(2,331
|
)
|
|||
Cash
flows from financing activities of continuing
operations
|
|||||||
Proceeds
from issuance of long-term debt
|
9,919
|
9,919
|
|||||
Principal
payments on long-term debt
|
(14,174
|
)
|
(14,174
|
)
|
|||
Change
in short-term debt, net
|
1,115
|
1,028
|
|||||
Cash
dividends paid
|
(250
|
)
|
(250
|
)
|
|||
All
other financing activities
|
(1
|
)
|
(1
|
)
|
|||
Net
cash (used in) financing activities
|
(3,391
|
)
|
(3,478
|
)
|
|||
Effect
of exchange rate changes on cash and cash equivalents
|
75
|
75
|
|||||
Total
cash flows from continuing operations
|
(3,849
|
)
|
(3,849
|
)
|
|||
Cash
flows from discontinued operations
|
|||||||
Cash
flows from discontinued operations provided by operating
activities
|
—
|
—
|
|||||
Cash
flows from discontinued operations used in investing
activities
|
—
|
—
|
|||||
Net
(decrease) in cash and cash equivalents
|
$
|
(3,849
|
)
|
$
|
(3,849
|
)
|
|
Cash
and cash equivalents, beginning of period
|
$
|
14,798
|
$
|
14,798
|
|||
Cash
and cash equivalents of discontinued operations, beginning of
period
|
—
|
—
|
|||||
Change
in cash and cash equivalents
|
(3,849
|
)
|
(3,849
|
)
|
|||
Less:
cash and cash equivalents of discontinued operations, end of
period
|
—
|
—
|
|||||
Cash
and cash equivalents, end of period
|
$
|
10,949
|
$
|
10,949
|
First
Quarter 2005
|
|||||||
Previously
|
|||||||
Reported
|
Restated
|
||||||
(Unaudited)
|
|||||||
Cash
flows from operating activities of continuing
operations
|
|||||||
Net
income
|
$
|
710
|
$
|
353
|
|||
(Income)
related to discontinued operations
|
(37
|
)
|
(37
|
)
|
|||
Provision
for credit losses
|
117
|
117
|
|||||
Depreciation
and amortization
|
1,167
|
1,166
|
|||||
Net
(gain) on sales of finance receivables
|
(25
|
)
|
(38
|
)
|
|||
Increase
in deferred income taxes
|
299
|
86
|
|||||
Net
change in other assets
|
1,765
|
449
|
|||||
Net
change in other liabilities
|
(495
|
)
|
(220
|
)
|
|||
Net
(purchases)/sales of held for sale wholesale receivables
|
—
|
(357
|
)
|
||||
All
other operating activities
|
25
|
673
|
|||||
Net
cash provided by operating activities
|
3,526
|
2,192
|
|||||
Cash
flows from investing activities of continuing
operations
|
|||||||
Purchase
of finance receivables (other than wholesale)
|
(11,027
|
)
|
(11,027
|
)
|
|||
Collection
of finance receivables (other than wholesale)
|
10,413
|
10,410
|
|||||
Purchase
of operating lease vehicles
|
(3,130
|
)
|
(3,130
|
)
|
|||
Liquidation
of operating lease vehicles
|
2,055
|
2,055
|
|||||
Net
change in wholesale receivables
|
(1,255
|
)
|
(1,255
|
)
|
|||
Net
change in retained interest in securitized assets
|
(98
|
)
|
259
|
||||
Net
change in notes receivable from affiliated companies
|
129
|
129
|
|||||
Proceeds
from sales of receivables
|
9,739
|
9,739
|
|||||
Purchases
of marketable securities
|
(114
|
)
|
(114
|
)
|
|||
Proceeds
from sales and maturities of marketable securities
|
95
|
95
|
|||||
Net
change in derivatives
|
—
|
1,055
|
|||||
All
other investing activities
|
(215
|
)
|
(215
|
)
|
|||
Net
cash provided by investing activities
|
6,592
|
8,001
|
|||||
Cash
flows from financing activities of continuing
operations
|
|||||||
Proceeds
from issuance of long-term debt
|
5,233
|
5,233
|
|||||
Principal
payments on long-term debt
|
(15,490
|
)
|
(15,490
|
)
|
|||
Change
in short-term debt, net
|
1,198
|
1,131
|
|||||
Cash
dividends paid
|
(450
|
)
|
(450
|
)
|
|||
All
other financing activities
|
(23
|
)
|
(31
|
)
|
|||
Net
cash (used in) financing activities
|
(9,532
|
)
|
(9,607
|
)
|
|||
Effect
of exchange rate changes on cash and cash equivalents
|
(163
|
)
|
(163
|
)
|
|||
Total
cash flows from continuing operations
|
423
|
423
|
|||||
Cash
flows from discontinued operations
|
|||||||
Cash
flows from discontinued operations provided by operating
activities
|
71
|
71
|
|||||
Cash
flows from discontinued operations used in investing
activities
|
(66
|
)
|
(66
|
)
|
|||
Net
increase in cash and cash equivalents
|
$
|
428
|
$
|
428
|
|||
Cash
and cash equivalents, beginning of period
|
$
|
12,668
|
$
|
12,668
|
|||
Cash
and cash equivalents of discontinued operations, beginning of
period
|
—
|
—
|
|||||
Change
in cash and cash equivalents
|
428
|
428
|
|||||
Less:
cash and cash equivalents of discontinued operations, end of
period
|
(5
|
)
|
(5
|
)
|
|||
Cash
and cash equivalents, end of period
|
$
|
13,091
|
$
|
13,091
|
First
Quarter
|
||||||||||
2006
|
||||||||||
Restated
2006
|
Restated
2005
|
Over/(Under)
2005
|
||||||||
Income
from continuing operations before income taxes
|
(in
millions)
|
|||||||||
North
America segment
|
$
|
532
|
$
|
869
|
$
|
(337
|
)
|
|||
International
segment
|
204
|
244
|
(40
|
)
|
||||||
Unallocated
risk management
|
(354
|
)
|
(622
|
)
|
268
|
|||||
Income
from continuing operations before income taxes
|
382
|
491
|
(109
|
)
|
||||||
Provision
for income taxes and minority interests
|
(134
|
)
|
(175
|
)
|
41
|
|||||
Income/(Loss)
from discontinued operations
|
—
|
37
|
(37
|
)
|
||||||
Total
net income
|
$
|
248
|
$
|
353
|
$
|
(105
|
)
|
First
Quarter
|
|||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
North
America segment
|
|||||||
United
States
|
398
|
410
|
|||||
Canada
|
35
|
31
|
|||||
Total
North America segment
|
433
|
441
|
|||||
International
segment
|
|||||||
Europe
|
185
|
186
|
|||||
Other
international
|
65
|
73
|
|||||
Total
International segment
|
250
|
259
|
|||||
Total
contract placement volume
|
683
|
700
|
First
Quarter
|
|||||||
2006
|
2005
|
||||||
United
States
|
|||||||
Financing
share - Ford, Lincoln and Mercury
|
|||||||
Retail
installment and lease
|
43
|
%
|
43
|
%
|
|||
Wholesale
|
81
|
82
|
|||||
Europe
|
|||||||
Financing
share - Ford
|
|||||||
Retail
installment and lease
|
25
|
%
|
26
|
%
|
|||
Wholesale
|
96
|
97
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Receivables
|
(in
billions)
|
||||||
On-Balance
Sheet
|
|||||||
(including
on-balance sheet securitizations)
|
|||||||
Finance
receivables
|
|||||||
Retail
installment
|
$
|
63.5
|
$
|
65.7
|
|||
Wholesale
|
40.1
|
39.6
|
|||||
Other
|
4.4
|
4.6
|
|||||
Total
finance receivables, net
|
108.0
|
109.9
|
|||||
Net
investment in operating leases
|
23.7
|
22.2
|
|||||
Total
on-balance sheet (a)
|
$
|
131.7
|
$
|
132.1
|
|||
Memo:
Allowance for credit losses included above
|
$
|
1.4
|
$
|
1.6
|
|||
Securitized
Off-Balance Sheet
|
|||||||
Finance
receivables
|
|||||||
Retail
installment
|
$
|
17.0
|
$
|
18.0
|
|||
Wholesale
|
—
|
—
|
|||||
Other
|
—
|
—
|
|||||
Total
finance receivables, net
|
17.0
|
18.0
|
|||||
Net
investment in operating leases
|
—
|
—
|
|||||
Total
securitized off-balance sheet
|
$
|
17.0
|
$
|
18.0
|
|||
Managed
|
|||||||
Finance
receivables
|
|||||||
Retail
installment
|
$
|
80.5
|
$
|
83.7
|
|||
Wholesale
|
40.1
|
39.6
|
|||||
Other
|
4.4
|
4.6
|
|||||
Total
finance receivables, net
|
125.0
|
127.9
|
|||||
Net
investment in operating leases
|
23.7
|
22.2
|
|||||
Total
managed
|
$
|
148.7
|
$
|
150.1
|
|||
Serviced
|
$
|
152.2
|
$
|
153.0
|
First
Quarter
|
|||||||
|
2006
|
2005
|
|||||
Charge-offs
|
(in
millions)
|
||||||
On-Balance
Sheet
|
|||||||
Retail
installment and lease
|
$
|
111
|
$
|
167
|
|||
Wholesale
|
0
|
17
|
|||||
Other
|
—
|
(3
|
)
|
||||
Total
on-balance sheet
|
$
|
111
|
$
|
181
|
|||
Reacquired
Receivables (retail) (a)
|
$
|
2
|
$
|
9
|
|||
Securitized
Off-Balance Sheet
|
|||||||
Retail
installment and lease
|
$
|
23
|
$
|
39
|
|||
Wholesale
|
—
|
—
|
|||||
Other
|
—
|
—
|
|||||
Total
securitized off-balance sheet
|
$
|
23
|
$
|
39
|
|||
Managed
|
|||||||
Retail
installment and lease
|
$
|
136
|
$
|
215
|
|||
Wholesale
|
0
|
17
|
|||||
Other
|
—
|
(3
|
)
|
||||
Total
managed
|
$
|
136
|
$
|
229
|
|||
Loss-to-Receivables
Ratios
|
|||||||
On-Balance
Sheet
|
|||||||
Retail
installment and lease
|
0.51
|
%
|
0.67
|
%
|
|||
Wholesale
|
0.00
|
0.28
|
|||||
Total
including other
|
0.34
|
%
|
0.56
|
%
|
|||
Managed
|
|||||||
Retail
installment and lease
|
0.52
|
%
|
0.73
|
%
|
|||
Wholesale
|
0.00
|
0.16
|
|||||
Total
including other
|
0.37
|
%
|
0.55
|
%
|
(a)
|
Reacquired
receivables reflect the amount of receivables that resulted from
the
accounting consolidation of our FCAR Owner Trust retail securitization
program ("FCAR") in the second quarter of
2003.
|
First
Quarter
|
|||||||
|
2006
|
2005
|
|||||
On-Balance
Sheet
|
|||||||
Charge-offs
(in millions)
|
$
|
71
|
$
|
96
|
|||
Loss-to-receivables
ratios
|
0.56
|
%
|
0.65
|
%
|
|||
Managed
|
|||||||
Charge-offs
(in millions)
|
$
|
90
|
$
|
129
|
|||
Loss-to-receivables
ratios
|
0.57
|
%
|
0.72
|
%
|
|||
Other
Metrics — Serviced
|
|||||||
Repossessions
(in thousands)
|
23
|
30
|
|||||
Repossession
ratios (a)
|
2.09
|
%
|
2.41
|
%
|
|||
Average
loss per repossession
|
$
|
5,900
|
$
|
6,000
|
|||
New
bankruptcy filings (in thousands)
|
4
|
18
|
|||||
Over-60
day delinquency ratio (b)
|
0.14
|
%
|
0.11
|
%
|
(a)
|
Repossessions
as a percent of the average number of accounts outstanding during
the
periods.
|
(b)
|
Delinquencies
are expressed as a percent of the end-of-period accounts outstanding
for
non-bankrupt accounts.
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(in
billions)
|
|||||||
Allowance
for Credit Losses
|
|||||||
Retail
installment and lease
|
$
|
1.3
|
$
|
1.5
|
|||
Wholesale
|
0.1
|
0.1
|
|||||
Other
|
0.0
|
0.0
|
|||||
Total
allowance for credit losses
|
$
|
1.4
|
$
|
1.6
|
|||
As
a Percentage of End-of-Period Receivables
|
|||||||
Retail
installment and lease
|
1.50
|
%
|
1.63
|
%
|
|||
Wholesale
|
0.21
|
0.24
|
|||||
Other
|
0.55
|
0.77
|
|||||
Total
|
1.08
|
%
|
1.19
|
%
|
First
Quarter
|
|||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Placements
|
128
|
84
|
|||||
Terminations
|
85
|
106
|
|||||
Returns
|
60
|
69
|
First
Quarter
|
|||||||
|
2006
|
2005
|
|||||
Auctions
|
89
|
%
|
86
|
%
|
|||
Other
Channels
|
11
|
14
|
DBRS
|
Fitch
|
Moody's
|
S&P
|
|||||||||
Date
|
Long-Term
|
Short-Term
|
Trend
|
Long-Term
|
Short-Term
|
Outlook
|
Long-Term
|
Short-Term
|
Outlook
|
Long-Term
|
Short-Term
|
Outlook
|
Jan.
2006
|
BB
|
R-3
(high)
|
Negative
|
BB+
|
B
|
Negative
|
Ba2
|
NP
|
Negative
|
BB-
|
B-2
|
Negative
|
Mar.
2006
|
BB
|
R-3
(high)
|
Negative
|
BB
|
B
|
Negative
|
Ba2
|
NP
|
Negative
|
BB-
|
B-2
|
Negative
|
Restated
March
31,
|
Restated
December
31,
|
||||||
2006
|
2005
|
||||||
(in
billions)
|
|||||||
Debt
|
|||||||
Asset-backed
commercial paper (a)
|
$
|
22.4
|
$
|
21.8
|
|||
Other
asset-backed short term debt (a)
|
1.1
|
—
|
|||||
Ford
Interest Advantage
|
6.6
|
6.7
|
|||||
Commercial
paper — unsecured
|
0.7
|
1.0
|
|||||
Other
short-term debt
|
2.1
|
2.3
|
|||||
Total
short-term debt
|
32.9
|
31.8
|
|||||
Unsecured
long-term debt (including notes payable within one year)
|
73.7
|
83.6
|
|||||
Asset-backed
long-term debt (including notes payable within one year) (a)
|
24.1
|
18.0
|
|||||
Total
debt
|
130.7
|
133.4
|
|||||
Securitized
Off-Balance Sheet Funding
|
|||||||
Securitized
off-balance sheet portfolio
|
17.0
|
18.0
|
|||||
Retained
interest
|
(1.4
|
)
|
(1.4
|
)
|
|||
Total
securitized off-balance sheet funding
|
15.6
|
16.6
|
|||||
Total
debt plus securitized off-balance sheet funding
|
$
|
146.3
|
$
|
150.0
|
|||
Ratios
|
|||||||
Credit
lines to total unsecured commercial paper
|
>100
|
%
|
>100
|
%
|
|||
Credit
lines to total unsecured commercial paper (including Ford bank
lines)
|
>100
|
>100
|
|||||
Securitized
funding to managed receivables
|
42
|
38
|
|||||
Short-term
debt and notes payable within one year to total debt
|
46
|
43
|
|||||
Short-term
debt and notes payable within one year to total capitalization
|
42
|
40
|
(a) |
Asset-backed
debt is issued by consolidated securitization SPEs and is payable
out of
collections on the finance receivables or interests in operating
leases
and the related vehicles transferred to the SPEs. This debt is
the legal
obligation of the related securitization SPEs.
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(in
billions)
|
|||||||
Back-up
Credit Facilities
|
|||||||
Ford
Credit bank lines
|
$
|
3.7
|
$
|
3.8
|
|||
FCE
bank lines
|
2.4
|
2.4
|
|||||
Ford
bank lines (available at Ford’s option)
|
6.5
|
6.5
|
|||||
Asset-backed
commercial paper lines
|
18.7
|
18.7
|
|||||
Total
back-up facilities
|
31.3
|
31.4
|
|||||
Utilized
amounts
|
(1.5
|
)
|
(1.1
|
)
|
|||
Total
available back-up facilities
|
$
|
29.8
|
$
|
30.3
|
|
First
Quarter
|
||||||
|
2006
|
2005
|
|||||
(in
billions)
|
|||||||
North
America segment
|
|||||||
Public
retail
|
$
|
—
|
$
|
4.5
|
|||
Conduit
|
1.0
|
2.0
|
|||||
Motown
Notes program
|
—
|
1.4
|
|||||
Total
North America segment
|
1.0
|
7.9
|
|||||
International
segment
|
|||||||
Europe
|
|||||||
Public
|
0.1
|
0.2
|
|||||
Conduit
|
—
|
0.1
|
|||||
Total
Europe
|
0.1
|
0.3
|
|||||
Asia-Pacific
|
—
|
—
|
|||||
Latin
America
|
0.4
|
—
|
|||||
Total
International segment
|
0.5
|
0.3
|
|||||
Net
proceeds
|
1.5
|
8.2
|
|||||
Whole-loan
sales
|
1.0
|
1.5
|
|||||
Total
net proceeds
|
2.5
|
9.7
|
|||||
Retained
interest and other
|
0.2
|
(0.8
|
)
|
||||
Total
receivables sold
|
2.7
|
8.9
|
|||||
Prior
period sold receivables, net of paydown activity
|
17.8
|
35.2
|
|||||
Total
sold receivables outstanding at the end of the relevant period
|
20.5
|
44.1
|
|||||
Memo:
|
|||||||
Less:
Receivables outstanding in whole-loan sale transactions
|
(3.5
|
)
|
(4.8
|
)
|
|||
Total
securitized off-balance sheet receivables
|
$
|
17.0
|
$
|
39.3
|
Net
gain on sales of finance
receivables,
|
Income
on interest in sold wholesale receivables and retained securities,
|
Servicing
fee income from sold receivables that we
continue
to service, and
|
Income
from residual interest and other income.
|
First
Quarter
|
|||||||
|
Restated
2006
|
Restated
2005
|
|||||
(in
millions)
|
|||||||
Servicing
fees
|
$
|
58
|
$
|
99
|
|||
Net
gain on sales of receivables
|
24
|
38
|
|||||
Income
on interest in sold wholesale receivables and retained securities
|
8
|
116
|
|||||
Income
on residual interest and other
|
93
|
205
|
|||||
Investment
and other income related to sales of receivables
|
183
|
458
|
|||||
Less:
Whole-loan income
|
(3
|
)
|
(16
|
)
|
|||
Income
related to off-balance sheet securitizations
|
$
|
180
|
$
|
442
|
|||
Memo:
|
|||||||
Finance
receivables sold (in billions)
|
$
|
2.7
|
$
|
8.9
|
|||
Servicing
portfolio as of period-end (in billions)
|
20.5
|
44.1
|
|||||
Pre-tax
gain per dollar of retail receivables sold
|
0.9
|
%
|
0.4
|
%
|
First
Quarter
|
|||||||
Restated
2006
|
Restated
2005
|
||||||
(in
millions)
|
|||||||
Financing
revenue
|
|||||||
Retail
revenue
|
$
|
327
|
$
|
395
|
|||
Wholesale
revenue
|
—
|
301
|
|||||
Total
financing revenue
|
327
|
696
|
|||||
Borrowing
cost
|
(176
|
)
|
(242
|
)
|
|||
Net
financing margin
|
151
|
454
|
|||||
Net
credit losses
|
(23
|
)
|
(39
|
)
|
|||
Income
before income taxes
|
$
|
128
|
$
|
415
|
|||
Memo:
|
|||||||
Income
related to off-balance sheet securitizations
|
$
|
180
|
$
|
442
|
|||
Recalendarization
impact of off-balance sheet securitizations
|
52
|
27
|
Financial
|
Total
Debt
|
|
|
|
||||||
Statement
|
=
|
Equity
|
||||||||
Leverage
|
||||||||||
Retained
|
||||||||||
|
Interest
in
|
|
|
|||||||
Securitized
|
Securitized
|
Cash,
Cash
|
Fair
Value
|
|||||||
Off-balance
|
Off-balance
|
Equivalents
&
|
Hedge
Accounting
|
|||||||
Total
Debt
|
+
|
Sheet
|
-
|
Sheet
|
-
|
Marketable
|
-
|
Adjustments
|
||
Receivables
|
Receivables
|
Securities*
|
on
Total Debt
|
|||||||
Managed
Leverage
|
=
|
|
||||||||
Fair
Value
|
||||||||||
Equity
|
+
|
Minority
|
-
|
Hedge
Accounting
|
||||||
Interest
|
Adjustments
|
|||||||||
on
Equity
|
||||||||||
*
Excluding marketable securities related to insurance
activities
|
Restated
March
31,
|
Restated
December
31,
|
||||||
2006
|
2005
|
||||||
Total
debt
|
$
|
130.7
|
$
|
133.4
|
|||
Total
stockholder’s equity
|
11.5
|
11.4
|
|||||
Financial
statement leverage (to 1)
|
11.4
|
11.7
|
Restated
March
31,
|
Restated
December
31,
|
||||||
|
2006
|
2005
|
|||||
Total
debt
|
$
|
130.7
|
$
|
133.4
|
|||
Securitized
off-balance sheet receivables outstanding
|
17.0
|
18.0
|
|||||
Retained
interest in securitized off-balance sheet receivables
|
(1.4
|
)
|
(1.4
|
)
|
|||
Adjustments
for cash and cash equivalents, and marketable securities *
|
(15.9
|
)
|
(17.9
|
)
|
|||
Fair
value hedge accounting adjustments
|
(0.4
|
)
|
(0.5
|
)
|
|||
Total
adjusted debt
|
$
|
130.0
|
$
|
131.6
|
|||
Total
stockholder’s equity (including minority interest)
|
$
|
11.5
|
$
|
11.4
|
|||
Fair
value hedge accounting adjustments
|
(0.5
|
)
|
(0.7
|
)
|
|||
Total
adjusted equity
|
$
|
11.0
|
$
|
10.7
|
|||
Managed
leverage (to 1)
|
11.9
|
12.3
|
|||||
*
Excluding marketable securities related to insurance
activities
|
/s/
Kenneth
R. Kent
|
||
|
||
November
14, 2006
|
Designation
|
Description
|
Method
of Filing
|
||
Ford
Motor Credit Company and Subsidiaries Calculation of Ratio of Earnings
to
Fixed Charges
|
Filed
with this Report
|
|||
Letter
of PricewaterhouseCoopers LLP, dated November 14, 2006, relating
to
Financial Information
|
Filed
with this Report
|
|||
Rule
15d-14(a) Certification of CEO
|
Filed
with this Report
|
|||
Rule
15d-14(a) Certification of CFO
|
Filed
with this Report
|
|||
Section
1350 Certification of CEO
|
Furnished
with this Report
|
|||
Section
1350 Certification of CFO
|
Furnished
with this Report
|