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Management’s Discussion and Analysis of Financial Condition and Results of Operations<br />
Funding Portfolio. The chart below details the trends in the funding of Ford Credit's managed receivables:<br />
__________<br />
(a) The Ford Interest Advantage program consists of Ford Credit's floating rate demand notes.<br />
(b) Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and<br />
related enhancements.<br />
(c) Excludes marketable securities related to insurance activities.<br />
At year-end 2011, managed receivables were $85 billion. Ford Credit ended the year with $12.1 billion in cash, and<br />
securitized funding was 55% of managed receivables.<br />
Ford Credit is projecting 2012 year-end managed receivables in the range of $85 billion to $95 billion and securitized<br />
funding is expected to represent about 49% to 54% of total managed receivables. The lower end of this range reflects, in<br />
part, FUEL notes converting to unsecured debt. It is Ford Credit's expectation that the securitized funding as a percent of<br />
managed receivables will decline going forward.<br />
Funding Plan. The following table illustrates Ford Credit's planned issuances for full-year 2012 and its public and<br />
private term funding issuances in 2011, 2010, and 2009 (in billions):<br />
Term Funding Plan<br />
Public Transactions (a)<br />
Unsecured<br />
Securitization transactions (b)<br />
Total public term funding<br />
2012<br />
Forecast<br />
$ 8 - 11<br />
10 - 12<br />
$ 18 - 23<br />
2011<br />
$ 8<br />
11<br />
$ 19<br />
2010<br />
$ 6<br />
11<br />
$ 17<br />
2009<br />
$ 5<br />
15<br />
$ 20<br />
Private Transactions (c)<br />
$ 10 - 13 $ 16 $ 8<br />
__________<br />
(a) Includes Rule 144A offerings.<br />
(b) Includes FUEL notes in 2011.<br />
(c) Includes private term debt, securitizations, other structured financings, and other term funding; excludes sales to FCAR.<br />
$ 11<br />
In 2011, Ford Credit completed $35 billion of term funding. About $19 billion of this was public funding in the<br />
United States, Canada and Europe, including over $8 billion of unsecured debt. Ford Credit also completed about<br />
$16 billion of funding through its private securitization channels across all of its major asset classes and regions.<br />
Ford Motor Company | 2011 Annual Report 61