Annual Report 2011 - Ford Motor Company

Management’s Discussion and Analysis of Financial Condition and Results of Operations
AGGREGATE CONTRACTUAL OBLIGATIONS
We are party to many contractual obligations involving commitments to make payments to third parties. Most of these
are debt obligations incurred by our Financial Services sector. Long-term debt may have fixed or variable interest rates.
For long-term debt with variable-rate interest, we estimate the future interest payments based on projected market interest
rates for various floating-rate benchmarks received from third parties. In addition, as part of our normal business
practices, we enter into contracts with suppliers for purchases of certain raw materials, components, and services to
facilitate adequate supply of these materials and services. These arrangements may contain fixed or minimum quantity
purchase requirements. "Purchase obligations" are defined as off-balance sheet agreements to purchase goods or
services that are enforceable and legally binding on the Company and that specify all significant terms.
The table below summarizes our contractual obligations as of December 31, 2011 (in millions):
Automotive Sector
On-balance sheet
Long-term debt (a) (b) (excluding capital leases)
Interest payments relating to long-term debt (c)
Capital leases
Off-balance sheet
Purchase obligations
Operating leases
Total Automotive sector
Financial Services Sector
On-balance sheet
Long-term debt (a) (b) (excluding capital leases)
Interest payments relating to long-term debt (c)
Capital leases
Off-balance sheet
Purchase obligations
Operating leases
Total Financial Services sector
Intersector elimination (d)
Total Company
78 Ford Motor Company | 2011 Annual Report
2012
$ 446
589
10
1,765
195
3,005
22,681
2,755
1
19
54
25,510
(201)
$ 28,314
Payments Due by Period
2013 - 2014
$ 1,401
1,130
12
1,455
351
4,349
24,832
3,719
2
12
70
28,635
—
$ 32,984
2015 - 2016
$ 2,688
1,046
7
726
229
4,696
13,976
1,751
1
11
42
15,781
—
$ 20,477
2017 and
Thereafter
$ 8,198
7,717
4
1,106
231
17,256
7,977
2,043
—
11
41
10,072
—
$ 27,328
Total
$ 12,733
10,482
33
5,052
1,006
29,306
69,466
10,268
4
53
207
79,998
(201)
$ 109,103
__________
(a) Amount includes, prior to adjustment noted above, $456 million for the Automotive sector and $22,682 million for the Financial Services sector for
the current portion of long-term debt. See Note 18 of the Notes to the Financial Statements for additional discussion.
(b) Automotive sector excludes unamortized debt discounts of $(249) million. Financial Services sector excludes unamortized debt discounts of
$(152) million and adjustments of $681 million related to designated fair value hedges of the debt.
(c) Excludes amortization of debt discounts/premiums.
(d) Intersector elimination related to Ford's acquisition of Ford Credit debt securities. See Note 18 of the Notes to the Financial Statements for
additional detail.
The amount of unrecognized tax benefits for 2011 of $1.8 billion (see Note 22 of the Notes to the Financial
Statements for additional discussion) is excluded from the table above. Final settlement of a significant portion of these
obligations will require bilateral tax agreements among us and various countries, the timing of which cannot reasonably be
estimated.
For additional information regarding operating lease obligations, pension and OPEB obligations, and long-term debt,
see Notes 8, 17 and 18, respectively, of the Notes to the Financial Statements.