Annual Report 2011 - Ford Motor Company

Notes to the Financial Statements
NOTE 18. DEBT AND COMMITMENTS (Continued)
The carrying value of our debt at December 31 was as follows (in millions):
Interest Rates (a)
Average Contractual (b) Average Effective (c)
Automotive Sector
Debt payable within one year
2011 2010 2011 2010 2011 2010
Short-term with non-affiliates (d)
$ 559 $ 478 1.6% 2.5% 1.6% 2.5%
Short-term with unconsolidated affiliates
Long-term payable within one year
18
382
Secured term loan
—
140
Secured revolving loan
—
838
U.S. Department of Energy ("DOE") loans
240
—
Other debt
216
211
Total debt payable within one year
Long-term debt payable after one year
1,033 2,049
Public unsecured debt securities
5,260 5,260
Unamortized discount
(77) (81)
Convertible notes
908
908
Unamortized discount
(172) (199)
Subordinated convertible debentures
— 2,985
Secured term loan
— 3,946
DOE loans
4,556 2,752
EIB loan
698
699
Other debt
888
758
Total long-term debt payable after one year
12,061 17,028 4.9% 4.1% 5.5% 5.3%
Total Automotive sector
$ 13,094 $ 19,077
Fair value of debt
Financial Services Sector
Short-term debt
$ 13,451 $ 19,260
Asset-backed commercial paper
$ 6,835 $ 6,634
Other asset-backed short-term debt
2,987 1,447
Ford Interest Advantage (e)
4,713 4,525
Other short-term debt
2,061
801
Total short-term debt
Long-term debt
Unsecured debt
16,596 13,407 1.4% 1.4% 1.4% 1.4%
Notes payable within one year
6,144 9,524
Notes payable after one year
Asset-backed debt
26,167 26,390
Notes payable within one year
16,538 16,684
Notes payable after one year
20,621 19,208
Unamortized discount
(152) (403)
Fair value adjustments (f)
681
302
Total long-term debt
69,999 71,705 4.3% 4.6% 4.6% 5.0%
Total Financial Services sector
$ 86,595 $ 85,112
Fair value of debt
$ 88,823 $ 88,569
Total Automotive and Financial Services sectors $ 99,689 $ 104,189
Intersector elimination (g)
(201) (201)
Total Company
__________
$ 99,488 $ 103,988
(a) Interest rates are presented for the fourth quarter of 2011 and the fourth quarter of 2010.
(b) Average contractual rates reflect the stated contractual interest rate; excludes amortization of discounts, premiums, and issuance fees.
(c) Average effective rates reflect the average contractual interest rate plus amortization of discounts, premiums, and issuance fees.
(d) Includes Export-Import Bank of the United States secured loan of $250 million at December 31, 2011 and 2010.
(e) The Ford Interest Advantage program consists of Ford Credit's floating-rate demand notes.
(f) Adjustments related to designated fair value hedges of unsecured debt.
(g) Debt related to Ford's acquisition of Ford Credit debt securities.
144 Ford Motor Company | 2011 Annual Report