U.S. Floorplan Risk Management
Ford Credit
Financial Statement Leverage Reconciliation To Managed Leverage
(Bils)
2016
Dec 31
2017
Dec 31
2018
Dec 31
Leverage Calculation
Total debt*
$ 126.5
$ 137.8
$ 140.1
Adjustments for cash*
**
Adjustments for derivative accounting***
Total adjusted debt
(10.8)
(0.3)
(11.8)
-
(10.2)
0.2
$ 115.4
$ 126.0
$ 130.1
Equity****
$
12.8
$ 15.9
$
15.0
Adjustments for derivative accounting***
(0.3)
(0.1)
(0.2)
Total adjusted equity
$
12.5
$ 15.8
$
14.8
Financial statement leverage (to 1) (GAAP)
Managed leverage (to 1) (Non-GAAP)
9.9
9.2
8.7
8.0
9.4
8.8
* Includes debt issued in securitization transactions and payable only out of collections on the underlying securitized assets and related enhancements. Ford Credit holds the right to receive the excess
cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions
** Cash and cash equivalents, and Marketable securities reported on Ford Credit's balance sheet, excluding amounts related to insurance activities
*** Related primarily to market valuation adjustments to derivatives due to movements in interest rates. Adjustments to debt are related to designated fair value hedges and adjustments to equity are
related to retained earnings
**** Total shareholder's interest reported on Ford Credit's balance sheet
104
Ford FORD CREDITView entire presentation