SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
(Mark One)
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2002
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file numbers 1-6368
FORD MOTOR CREDIT COMPANY
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(Exact name of registrant as specified in its charter)
Delaware 38-1612444
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(State of Incorporation) (I.R.S. employer identification no.)
One American Road, Dearborn, Michigan 48126
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (313) 322-3000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number
of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date: 250,000 shares
of common stock as of May 13, 2002.
DOCUMENTS INCORPORATED BY REFERENCE
This Report incorporates by reference sections of Part I, sections of
Item 1 of Part II and Exhibit 12 of Ford Motor Company's Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2002.
The registrant meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing
this Form in reduced disclosure format.
EXHIBIT INDEX APPEARS AT PAGE 24.
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements - The interim financial data presented herein are
unaudited, but in our opinion reflect all adjustments, consisting only of normal
recurring adjustments, necessary for a fair statement of such information.
Results for interim periods should not be considered indicative of results for a
full year. We refer you to the financial statements contained in our Annual
Report on Form 10-K for the year ended December 31, 2001 (the "10-K Report").
We are not presenting information relating to earnings per share because we are
an indirect wholly owned subsidiary of Ford Motor Company ("Ford").
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Statement of Income
and of Earnings Retained for Use in the Business
For the Periods Ended March 31, 2002 and 2001
(in millions)
First Quarter
-------------------------------
-------------------------------
2002 2001
----------- -----------
(Unaudited)
Financing revenue
Operating leases $ 2,968.8 $ 2,906.7
Retail 1,945.6 2,047.2
Wholesale 236.2 793.6
Other 92.4 130.6
----------- ----------
Total financing revenue 5,243.0 5,878.1
Depreciation on operating leases (2,256.2) (2,121.4)
Interest expense (1,881.8) (2,426.0)
----------- ----------
Net financing margin 1,105.0 1,330.7
Other revenue
Investment and other income related to securitizations 638.3 316.9
Insurance premiums earned 61.4 59.8
Other income 165.4 215.6
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Total financing margin and revenue 1,970.1 1,923.0
Expenses
Operating expenses 624.3 634.8
Provision for credit losses 892.0 617.9
Other insurance expenses 46.6 44.6
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Total expenses 1,562.9 1,297.3
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Income before income taxes and minority interests 407.2 625.7
Provision for income taxes 151.1 232.1
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Income before minority interests 256.1 393.6
Minority interests in net income of subsidiaries 0.3 0.1
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Net income 255.8 393.5
Earnings retained for use in the business
Beginning of period 8,710.8 8,272.3
Dividends - (250.0)
----------- ----------
End of period $ 8,966.6 $ 8,415.8
=========== ==========
The accompanying notes are an integral part of the financial statements.
-2-
ITEM 1. FINANCIAL STATEMENTS
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Balance Sheet
(in millions)
March 31, December 31, March 31,
2002 2001 2001
---------------- ---------------- --------------
(Unaudited) (Unaudited)
Assets
Cash and cash equivalents $ 7,646.2 $ 2,945.3 $ 1,075.6
Investments in securities 571.8 525.9 557.2
Finance receivables, net 101,801.3 109,701.4 123,462.0
Net investment, operating leases 38,162.1 39,334.9 38,816.7
Retained interest in securitized assets 9,575.2 12,548.4 3,929.1
Notes and accounts receivable from affiliated companies 1,933.3 2,529.0 2,072.9
Other assets 5,666.2 5,511.5 5,242.8
---------------- ----------------- --------------
Total assets $ 165,356.1 $ 173,096.4 $ 175,156.3
================ ================= ==============
Liabilities and Stockholder's Equity
Liabilities
Accounts payable
Trade, customer deposits, and dealer reserves $ 2,705.2 $ 2,653.9 $ 4,429.2
Affiliated companies 932.3 1,005.6 1,397.4
---------------- ----------------- --------------
Total accounts payable 3,637.5 3,659.5 5,826.6
Debt 137,902.5 146,343.7 147,947.5
Deferred income taxes 4,829.3 4,591.5 4,479.3
Other liabilities and deferred income 5,934.7 6,500.1 5,228.1
---------------- ----------------- --------------
Total liabilities 152,304.0 161,094.8 163,481.5
Minority interests in net assets of subsidiaries 18.0 17.8 17.3
Stockholder's Equity
Capital stock, par value $100 a share, 250,000 shares
authorized, issued and outstanding 25.0 25.0 25.0
Paid-in surplus (contributions by stockholder) 5,156.8 4,457.7 4,265.8
Accumulated other comprehensive loss (1,114.3) (1,209.7) (1,049.1)
Retained earnings 8,966.6 8,710.8 8,415.8
---------------- ----------------- --------------
Total stockholder's equity 13,034.1 11,983.8 11,657.5
---------------- ----------------- --------------
Total liabilities and stockholder's equity $ 165,356.1 $ 173,096.4 $ 175,156.3
================ ================= ==============
The accompanying notes are an integral part of the financial statements.
-3-
ITEM 1. FINANCIAL STATEMENTS
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Consolidated Statement of Cash Flows
For the Periods Ended March 31, 2002 and 2001
(in millions)
First Quarter
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-----------------------------
2002 2001
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(Unaudited)
Cash flows from operating activities
Net income $ 255.8 $ 393.5
Adjustments to reconcile net income to net cash provided by
operating activities
Provision for credit losses 892.0 617.9
Depreciation and amortization 2,371.3 2,265.4
Gain on sales of finance receivables (213.1) (169.7)
Increase in deferred income taxes 125.2 274.1
Decrease in other assets 439.4 74.9
Decrease in other liabilities (666.0) (1,293.8)
All other operating activities (89.1) (4.2)
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Net cash provided by operating activities 3,115.5 2,158.1
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Cash flows from investing activities
Purchase of finance receivables (other than wholesale) (12,812.9) (14,192.6)
Collection of finance receivables (other than wholesale) 9,321.4 8,471.5
Purchase of operating lease vehicles (5,938.4) (6,804.7)
Liquidation of operating lease vehicles 4,696.3 4,247.5
Increase in wholesale receivables (2,434.6) (2,713.6)
Decrease in notes receivable with affiliates 1,157.1 277.0
Proceeds from sale of receivables 15,351.3 7,102.0
Purchase of investment securities (183.6) (201.7)
Proceeds from sale/maturity of investment securities 137.7 191.9
All other investing activities 79.1 (117.6)
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Net cash provided/ (used) by investing activities 9,373.4 (3,740.3)
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Cash flows from financing activities
Proceeds from issuance of long-term debt 8,001.8 13,704.0
Principal payments on long-term debt (9,022.9) (3,531.4)
Decrease in short-term debt (7,440.1) (8,394.1)
Cash dividends paid - (250.0)
All other financing activities
699.1 103.9
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Net cash (used)/provided by financing activities (7,762.1) 1,632.4
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Effect of exchange rate changes on cash and cash equivalents (25.9) (98.0)
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Net change in cash and cash equivalents 4,700.9 (47.8)
Cash and cash equivalents, beginning of period 2,945.3 1,123.4
----------- -----------
Cash and cash equivalents, end of period $ 7,646.2 $ 1,075.6
=========== ===========
Supplementary cash flow information
Interest paid $ 2,153.5 $ 2,552.8
Taxes paid 100.8 66.1
The accompanying notes are an integral part of the financial statements.
-4-
ITEM 1. FINANCIAL STATEMENTS
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements
Note 1. Finance Receivables, Net (in millions)
March 31, December 31, March 31,
2002 2001 2001
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(Unaudited) (Unaudited)
Retail $ 77,743.1 $ 85,478.3 $ 78,853.1
Wholesale 15,644.2 15,610.3 36,534.3
Other 10,904.4 10,889.5 9,458.2
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Total finance receivables, net of unearned income 104,291.7 111,978.1 124,845.6
Less: Allowance for credit losses (2,490.4) (2,276.7) (1,383.6)
------------- ------------ ------------
Finance receivables, net $ 101,801.3 $ 109,701.4 $ 123,462.0
============= ============ ============
Memo: Managed receivables (including net
investment in operating leases) $ 205,992.5 $ 207,784.4 $ 193,778.6
============= ============ ============
Note 2. Debt (in millions)
March 31, December 31, March 31,
2002 2001 2001
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(Unaudited) (Unaudited)
Short-Term Debt
Commercial paper $ 7,748.6 $ 15,664.0 $ 33,528.4
Ford Money Market Account 4,428.9 ,051.4 4,203.2
Other short-term debt (a) 2,943.9 3,002.3 3,910.6
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Total short-term debt 15,121.4 22,717.7 41,642.2
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Long-Term Debt
Unsecured senior indebtedness (b)
Notes payable within one year (c) 21,123.0 21,274.9 16,916.9
Notes payable after one year (d) 101,750.9 102,398.4 89,451.5
Unamortized discount (92.8) (47.3) (63.1)
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Total long-term debt 122,781.1 23,626.0 106,305.3
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Total debt $ 137,902.5 $ 46,343.7 $ 147,947.5
============= ============ ============
Weighted-Average Interest Rate (e)
Total short-term debt 4.93% 4.69% 6.26%
Total long-term debt 5.42% 5.73% 6.62%
Total Debt 5.35% 5.55% 6.51%
(a) Includes $266.8 million, $288.0 million, and $978.6 million with affiliated companies at March 31, 2002,
December 31, 2001, and March 31, 2001, respectively.
(b) Unsecured senior notes mature at various dates through 2078.
(c) Includes $495.0 million, $477.3 million, and $844.0 million with affiliated companies at March 31, 2002,
December 31, 2001, and March 31, 2001, respectively.
(d) Includes $877.4 million, $963.2 million, and $1,556.4 million with affiliated companies at March 31, 2002,
December 31, 2001, and March 31, 2001, respectively.
(e) Average interest rates for the quarter reflect average period rates and include the effects of interest rate
swap agreements.
-5-
ITEM 1. FINANCIAL STATEMENTS
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes To Financial Statements-Continued
Note 3. SFAS 133 "Accounting for Derivative Instruments and Hedging Activities" (in millions)
Non-cash adjustments to income and to stockholder's equity for the first quarter, including the January 1, 2001 transition
adjustment, were (in millions):
First Quarter
----------------------------------
2002 2001
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Income/(loss) before income taxes (a) $ 23 $ (20)
Net income/(loss) 14 (13)
Stockholder's equity (b) 184 (481)
(a) Recorded in investment and other income related to securitizations and in other income
(b) Recorded in accumulated other comprehensive income/(loss)
Note 4. Comprehensive Income (in millions)
First Quarter
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2002 2001
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(Unaudited)
Net income $ 255.8 $ 393.5
Other comprehensive income/(loss) 95.4 (665.4)
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Total comprehensive income/(loss) $ 351.2 $ (271.9)
=========== ==========
Other comprehensive income includes foreign currency translation adjustments, net unrealized gains and losses
on investments in securities, unrealized gains and losses on derivative instruments, and unrealized gains and
losses or retained interests in securitized assets.
-6-
ITEM 1. FINANCIAL STATEMENTS
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
Notes to Financial Statements-Continued
Note 5. Segment Information (in millions)
Ford Credit manages its operations through two segments, Ford Credit North America and Ford Credit International.
Ford Credit Ford Credit
North Ford Credit Eliminations/ Financial
America International Reclassifications Statements
------------- --------------- ------------------- ------------
(Unaudited)
First Quarter
- ---------------------------------------------
2002
- ----
Revenue (a) $ 5,989.8 $ 868.0 $ (749.7) $ 6,108.1
Income (b)
Income before income taxes 279.1 100.9 27.2 407.2
Provision for income taxes 103.4 35.9 11.8 151.1
Net income 175.7 65.0 15.1 255.8
Other disclosures (a)
Depreciation on operating leases 2,022.3 129.2 104.7 2,256.2
Interest expense 1,972.7 404.6 (495.5) 1,881.8
Finance receivables
(including net investment in
operating leases) 174,771.8 32,756.9 (67,565.3) 139,963.4
Total assets 186,039.2 34,141.0 (54,824.1) 165,356.1
2001
- ----
Revenue (a) $ 6,065.0 $ 871.4 $ (466.0) $ 6,470.4
Income (b)
Income before income taxes 557.6 88.8 (20.7) 625.7
Provision for income taxes 208.4 31.1 (7.4) 232.1
Net income 349.2 57.7 (13.4) 393.5
Other disclosures (a)
Depreciation on operating leases 1,919.7 104.3 97.4 2,121.4
Interest expense 2,386.7 447.5 (408.2) 2,426.0
Finance receivables
(including net investment in
operating leases) 163,022.9 28,547.7 (29,291.9) 162,278.7
Total assets 163,036.3 31,832.2 (19,712.2) 175,156.3
(a) Operating segments are presented on a managed asset basis (managed assets include owned and sold receivables)
for these items; therefore eliminations/reclassifications include adjustments to reconcile to financial statement results.
(b) Eliminations/reclassifications largely reflect the impact of SFAS No. 133
-7-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
Revitalization Plan. On January 11, 2002, Ford announced its Revitalization
Plan. As part of the Revitalization Plan, we announced that we renewed our focus
on supporting vehicle financing of Ford's brands. Consistent with our
renewed focus, we announced on March 6, 2002, that we would integrate our
Fairlane Credit operation into our other North American business units by
December 31, 2002. Fairlane Credit offers non-prime financing through
dealers mainly for used vehicles. We do not expect the costs associated
with the integration of Fairlane Credit to be material.
First Quarter 2002 Compared with First Quarter 2001
Net Income. We earned $256 million in the first quarter of 2002, down
$137 million compared with earnings of $393 million a year ago. Excluding
adjustments related to Statement of Financial Accounting Standards No. 133
(SFAS No. 133), Accounting for Derivative Instruments and Hedging Activities,
our net income in the first quarter of 2002 was $242 million, down $164 million
from a year ago.
First Quarter
Operating Net Income
------------------------
2002
Over/(Under)
2002 2001 2001
------- ------- ------------
(in millions)
Net income....................................... $ 256 $ 393 $ (137)
Exclude:
SFAS No. 133................................ 14 (13) 27
------- ------- -------
Operating net income............................. $ 242 $ 406 $ (164)
======= ======= =======
Compared with the first quarter of 2001, our earnings were down because of
the unfavorable impact of securitizations and higher net credit losses,
offset partially by improved financing margins and a greater amount of
managed receivables. Increased funding through securitizations over the
past twelve months resulted in less owned receivables and related revenue,
offset partially by higher income on retained interests, excess spread and
servicing fees. Excess spread represents our right to retain collections on
sold receivables in excess of the amounts needed to pay interest and
principal to investors and servicing fees. Our net credit losses were
higher, reflecting weaker economic conditions compared with a year ago. Our
financing margins improved because of lower borrowing costs due to the lower
interest rate environment.
-8-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
Business Segments. Results of our operations by business segment for the
first quarter of 2002 and 2001 are shown below:
First Quarter
Net Income
----------------------
2002
Over/(Under)
2002 2001 2001
-------- -------- ----------
(in millions)
Ford Credit North America.............. $ 176 $ 349 $ (173)
Ford Credit International.............. 65 57 8
SFAS No. 133........................... 14 (13) 27
Eliminations/reclassifications......... 1 - 1
------- ------- -------
Total net income................ $ 256 $ 393 $ (137)
======= ======= =======
Ford Credit North America earned $176 million in the first quarter of
2002, down $173 million compared with earnings of $349 million a year ago.
This decline reflected primarily the unfavorable impact of securitizations
and higher net credit losses, offset partially by improved financing margins
and a greater amount of managed receivables. Our increased securitizations
over the past twelve months resulted in less owned receivables and related
revenue, offset partially by higher income on retained interests, excess
spread and servicing fees. Higher net credit losses reflected weaker
economic conditions compared with a year ago. Our financing margins improved
because of lower borrowing costs due to the lower interest environment.
Ford Credit International net income for the first quarter of 2002 was
$65 million, up $8 million compared with earnings of $57 million a year ago.
Compared with a year ago, the increase in Ford Credit International earnings
reflected higher receivables in Europe and lower credit losses in Latin
America.
Financial Condition
Volume and Financing Share
Our worldwide financing contract volumes for new and used vehicles are
shown below:
First Quarter Full Year
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2002 2001 2001 2000 1999 1998
----- ----- ----- ----- ----- -----
(in thousands)
Installment sales and finance lease.. 854 992 4,495 3,777 3,428 3,030
Operating lease...................... 199 259 1,050 1,228 1,065 1,138
----- ----- ----- ----- ----- -----
Total financing volume.......... 1,053 1,251 5,545 5,005 4,493 4,168
===== ===== ===== ===== ===== =====
United States........................ 662 853 3,819 3,525 3,139 2,794
Europe............................... 239 229 988 795 829 800
Other international.................. 152 169 738 685 525 574
----- ----- ----- ----- ----- -----
Total financing volume.......... 1,053 1,251 5,545 5,005 4,493 4,168
===== ===== ===== ===== ===== =====
Worldwide, our financing contract volumes were about 1.1 million in
the first quarter of 2002, down 198,000 contracts or 16% compared with a year
ago, resulting primarily from lower Ford vehicle sales and lower used and
non-prime retail installment financing.
-9-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Operating lease contract volumes were 199,000, down 60,000 contracts or 23%
compared with the first quarter of 2001, because of changes in Ford sponsored
low-rate financing which made retail installment sale financing more attractive
compared with leasing.
Shown below are our financing shares of all new Ford, Lincoln and Mercury
brand vehicles sold by dealers in the United States and Ford brand vehicles sold
by dealers in Europe. Also shown below are our wholesale financing shares of
Ford, Lincoln and Mercury brand vehicles acquired by dealers in the United
States and of Ford brand vehicles acquired by European dealers:
First Quarter Full Year
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2002 2001 2001 2000 1999 1998
---- ---- ---- ---- ---- ----
United States
Financing share - Ford, Lincoln and Mercury
Retail installment and lease.................. 43% 48% 54% 51% 47% 42%
Wholesale..................................... 84 86 84 84 84 83
Europe
Financing share - Ford
Retail installment and lease.................. 34% 31% 37% 32% 33% 33%
Wholesale..................................... 96 96 97 97 96 95
United States. Our total contract volumes in the United States were
662,000 in the first quarter of 2002, down 191,000 or 22% compared with a
year ago. Financing share of all new Ford, Lincoln and Mercury brand cars
and light trucks sold by dealers in the United States was 43% in the first
quarter of 2002 compared with 48% a year ago. These decreases reflected
lower Ford sales volumes and our lower financing share of these sales. Our
lower financing share reflected changes in Ford's marketing programs,
which included an increased use of cash rebates to vehicle purchasers instead
of sponsored low-rate financing programs.
Europe. Our contract volumes in Europe increased to 239,000 in the first
quarter of 2002 or 4%, compared with 229,000 contracts in the first quarter of
2001. Our financing share of all new Ford brand vehicles sold by dealers in
Europe was 34% in the first quarter of 2002 compared with 31% in the prior year.
These increases are attributable to Ford sponsored low-rate financing
programs in the United Kingdom and the addition of the Land Rover brand,
offset partially by lower contract volumes in Germany related to weaker
economic conditions in the automotive industry.
-10-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Finance Receivables and Operating Leases
Our worldwide owned and managed finance receivables, net of allowance for
credit losses, and net investment in operating leases are shown below:
March 31, December 31,
------------------ ---------------------------------------
2002 2001 2001 2000 1999 1998
------- ------- ------- ------- ------- -------
(in billions)
Outstanding Receivables - Owned
- --------------------------------
Finance receivables
Retail installment......................... $ 75.4 $ 77.6 $ 83.4 $ 79.9 $ 75.4 $ 66.7
Wholesale.................................. 15.5 36.4 15.4 33.7 26.1 22.4
Other...................................... 10.9 9.5 10.9 9.1 7.2 6.8
------- ------- ------- ------- ------- -------
Total finance receivables, net.......... $ 101.8 $ 123.5 $ 109.7 $ 122.7 $ 108.7 $ 95.9
Net investment in operating leases........... 38.2 38.8 39.3 38.5 32.9 34.6
------- ------- ------- ------- ------- -------
Total owned............................. $ 140.0 $ 162.3 $ 149.0 $ 161.2 $ 141.6 $ 130.5
======= ======= ======= ======= ======= =======
Memo: Allowance for credit losses included above $ 3.0 $ 1.7 $ 2.8 $ 1.6 $ 1.5 $ 1.5
Outstanding Receivables - Managed
- -----------------------------------
Finance receivables
Retail installment......................... $ 122.7 $ 107.5 $ 124.7 $ 105.9 $ 89.9 $ 74.5
Wholesale.................................. 34.2 37.7 32.8 36.1 31.1 28.1
Other...................................... 10.9 9.5 10.9 9.1 7.2 6.8
------- ------- ------- ------- ------- -------
Total finance receivables, net.......... $ 167.8 $ 154.7 $ 168.4 $ 151.1 $ 128.2 $ 109.4
Net investment in operating leases........... 38.2 39.1 39.4 38.6 33.0 34.6
------- ------- ------- ------- ------- -------
Total managed........................... $ 206.0 $ 193.8 $ 207.8 $ 189.7 $ 161.2 $ 144.0
======= ======= ======= ======= ======= =======
Memo: Allowance for credit losses included above $ 3.6 $ 2.2 $ 3.3 $ 2.1 $ 1.7 $ 1.7
Owned Receivables. On an owned basis, finance receivables and net
investment in operating leases, net of allowances for credit losses, at
March 31, 2002 were $140.0 billion, $22.3 billion lower than March 31, 2001
and $9.0 billion lower than December 31, 2001. These decreases resulted
primarily from higher sales of United States retail and wholesale receivables in
securitizations.
Managed Receivables. Total managed receivables at March 31, 2002 were
$206.0 billion, up $12.2 billion from March 31, 2001. The increase from a year
ago resulted primarily from higher contract volumes of retail receivables mainly
in the second half of 2001 as a result of Ford sponsored low-rate financing
programs. Total managed receivables at March 31, 2002 were down
$1.8 billion from December 31, 2001.
-11-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
Credit Loss Experience
The following table shows our net credit losses and loss-to-receivables
ratios for our worldwide owned and managed portfolios:
First Quarter Full Year
----------------- -------------------------------------
2002 2001 2001 2000 1999 1998
------- ------- ------- ------- ------- -------
(in millions)
Owned
-----
Net Credit Losses
Retail installment and lease $ 570 $ 420 $ 2,055 $ 1,283 $ 995 $ 1,031
Wholesale................ 9 3 32 14 3 9
Other.................... 7 0 24 - 2 (1)
------- ------- ------- ------- ------- -------
Total................. $ 586 $ 423 $ 2,111 $ 1,297 $ 1,000 $ 1,039
======= ======= ======= ======= ======= =======
Loss-to-receivables
Retail installment and lease 1.95% 1.45% 1.71% 1.09% 0.95% 1.08%
Wholesale................ 0.23 0.04 0.13 0.05 0.01 0.04
Total including other. 1.64% 1.06% 1.35% 0.84% 0.74% 0.85%
Managed
-------
Net Credit Losses
Retail installment and lease $ 667 $ 482 $ 2,272 $ 1,410 $ 1,164 $ 1,166
Wholesale................ 9 3 34 15 3 11
Other.................... 7 0 24 - 2 (1)
------- ------- ------- ------- ------- -------
Total................. $ 683 $ 485 $ 2,330 $ 1,425 $ 1,169 $ 1,176
======= ======= ======= ======= ======= =======
Loss-to-receivables
Retail installment and lease 1.61% 1.30% 1.45% 1.00% 0.97% 1.07%
Wholesale................ 0.10 0.04 0.10 0.05 0.01 0.04
Total including other. 1.36% 1.02% 1.20% 0.81% 0.78% 0.86%
The majority of our credit losses are related to retail installment
sale and lease contracts. These credit losses depend primarily on the
number of vehicle repossessions, the unpaid balance at the time of
repossession, and the net resale value at auction of the repossessed
vehicles. We also incur credit losses on our wholesale loans, but
default rates for these receivables historically have been substantially
lower than those for retail installment sale and lease. Other credit losses
reflect mainly account charge-offs for dealer capital loans.
In the first quarter of 2002, the loss-to-receivables ratio for our owned
portfolio was 1.64% compared with 1.06% a year ago and 2.02% in the fourth
quarter of 2001. The increase in this ratio compared with a year ago
reflected primarily higher net credit losses resulting from the continued
impact of weaker economic conditions in the United States. Both the
frequency and severity of credit losses increased compared with a year ago.
The change in the composition of our portfolio of owned receivables,
largely because of the securitization of wholesale receivables, also
adversely impacted our loss-to-receivables ratio. Excluding the impact of
the securitization of wholesale receivables, the loss-to-receivables ratio for
our owned portfolio for the first quarter of 2002 would have been 1.46%.
-12-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Delinquency Experience
For our United States portfolio, the over 60-day delinquency ratio was 0.43%
in the first quarter of 2002, up from 0.33% a year ago, but down from 0.48% in
the fourth quarter of 2001. Including accounts where the borrower has filed for
bankruptcy, the over 60-day delinquency ratio was 0.70% in the first quarter of
2002, up from 0.56% in the first quarter of 2001, but down from 0.74% in the
fourth quarter of 2001. The increase from the first quarter of 2001 reflected
weaker economic conditions compared with a year ago.
Allowance for Credit Losses
Our allowance for credit losses, and our allowance for credit losses as a
percentage of end-of-period net receivables, for our worldwide owned and
managed portfolios are shown below:
March 31, December 31,
----------------- -------------------------------------
2002 2001 2001 2000 1999 1998
------- ------- ------- ------- ------- -------
(in billions)
Owned
-----
Allowance for credit losses $ 3.0 $ 1.7 $ 2.8 $ 1.6 $ 1.5 $ 1.5
As a percentage of net receivables... 2.14% 1.06% 1.86% 1.02% 1.04% 1.19%
Managed
-------
Allowance for credit losses $ 3.6 $ 2.2 $ 3.3 $ 2.1 $ 1.7 $ 1.7
As a percentage of net receivables... 1.76% 1.14% 1.60% 1.10% 1.04% 1.17%
Residual Value Experience
Our worldwide net investment in operating leases at March 31, 2002 was
$38.2 billion, down $655 million from a year ago and down $1.17 billion from
December 31, 2001. The Ford Credit North American net investment in operating
leases was $34.3 billion, or 90% of our worldwide total. Our termination
volumes and return rates for Ford Credit North America are shown below:
First Quarter Full Year
--------------- --------------------------
2002 2001 2001 2000 1999
------ ------ ------ ------ ------
Termination volumes (000).......... 179 156 633 629 864
Return rates....................... 62% 60% 62% 63% 70%
In the first quarter of 2002, termination volumes were 179,000, up 15%
from a year ago, reflecting the high volume of lease contracts originated in
1999 and 2000 that terminated during the first quarter.
-13-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
Credit Ratings
Our credit ratings are unchanged from those reported in our 10-K Report for
the year ended December 31, 2001.
Funding and Liquidity
Our funding strategy continues to be focused on improving liquidity and
sustaining diverse and competitive funding sources. Our outstanding debt and
securitized funding were as follows on the dates indicated:
March 31, December 31,
---------------- -----------------------------------
2002 2001 2001 2000 1999 1998
------- ------- ------- ------- ------- -------
(in billions)
Debt
----
Commercial paper.................................... $ 7.7 $ 33.5 $ 15.7 $ 42.3 $ 43.1 $ 46.2
Ford Money Market Account........................... 4.5 4.2 4.0 3.7 2.8 2.6
Other short-term debt............................... 2.9 3.9 3.0 4.1 4.0 4.9
------- ------- ------- ------- ------- -------
Short-term debt..................................... 15.1 41.6 22.7 0.1 49.9 53.7
Long-term debt (including notes payable within one year) 122.8 106.3 123.6 96.2 83.2 61.3
------- ------- ------- -------- ------- -------
Total debt....................................... $ 137.9 $ 147.9 $ 146.3 $ 146.3 $ 133.1 $ 115.0
======= ======= ======= ======= ======= =======
Securitized funding
-------------------
Servicing portfolio................................. $ 66.0 $ 31.2 $ 58.7 $ 28.4 $ 19.5 $ 13.5
Retained interest................................... (9.6) (3.9) (12.5) (3.7) (3.5) (1.3)
------- ------- ------- ------- ------- -------
Total securitized funding........................ 56.4 27.3 46.2 24.7 16.0 12.2
------- ------- ------- ------- ------- -------
Total debt plus securitized funding.............. $ 194.3 $ 175.2 $ 192.5 $ 171.0 $ 149.1 $ 127.2
======= ======= ======= ======= ======= =======
Back-up credit facilities:
--------------------------
Ford Credit......................................... $ 9.6 $ 20.2 $ 9.5 $ 20.4 $ 19.3 $ 21.2
Ford Credit Europe.................................. 4.4 4.9 4.5 4.6 4.6 4.7
Bank lines shared with Ford......................... 8.0 8.1 8.0 8.1 8.3 8.3
FCAR lines.......................................... 12.5 1.4 12.5 1.4 1.4 1.5
------- ------ ------- ------- ------ ------
Total back-up facilities......................... 34.5 34.6 34.5 34.5 33.6 35.7
Drawn amounts....................................... (1.1) (0.9) (1.0) (1.1) (0.9) (2.2)
------- ------ ------- ------- ------ ------
Total available back-up facilities............... $ 33.4 $ 33.7 $ 33.5 $ 33.4 $ 32.7 $ 33.5
======= ====== ======= ======= ======= =======
Memo:
Available funding through bank-sponsored
asset-backed commercial paper issuers.......... $ 7.3 $ - $ 6.8 $ - $ - $ -
Ratios:
-------
Commercial paper coverage........................... >100% 95% >100% 73% 69% 64%
Short-term debt and notes payable within one year
to total debt.................................... 26 40 30 43 52 55
Short-term debt and notes payable within one year
to total capitalization.......................... 24 37 28 40 48 50
Debt and Securitized Funding. At March 31, 2002, debt plus securitized
funding totaled $194.3 billion, up $1.8 billion from December 31, 2001, and
up $19.1 billion from a year ago. At March 31, 2001, our commercial paper
balance was $7.7 billion ($1.1 billion net of overborrowing), with an average
remaining maturity of 44 days, down $8 billion from December 31, 2001, and
down $25.8 billion from a year ago.
At March 31, 2002, the total outstanding principal amount of receivables
we sold in securitizations was $66 billion, up $7.3 billion from
December 31, 2001. Our retained interest in the sold receivables at
March 31, 2002 was $9.6 billion, down from $12.5 billion at December 31, 2001.
The decline in retained interest reflected primarily the sale of our
undivided interests in wholesale receivables during the first quarter to
support the issuance of additional securities by one of our
securitization special purpose entities.
-14-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
At March 31, 2002, the ratio of short-term debt and notes payable within
one year to capitalization was 24% compared to 28% at December 31, 2001 and
37% a year ago.
Funding Proceeds. During the first quarter of 2002, our long-term debt
proceeds totaled $8.0 billion, and securitization funding proceeds tota1ed
$15.4 billion. Long-term debt funding consisted of issuances of $4.4 billion
of Eurodollar bonds, $2 billion of GlobLSTM and $1.6 billion of other
types of debt including issuances in international markets of about
$900 million. Our securitization funding included about $10.1 billion of
public retail securitization transactions, $1 billion issued under our FCAR
asset-backed commercial paper program and $4.3 billion under our Motown Notes
SM program.
We continue to estimate our long-term funding requirements for 2002 to be
between $30 billion and $35 billion, which includes term-debt and securitization
funding. At March 31, 2002, we had completed $18 billion or about half of our
planned long-term funding transactions for the year. In addition, we will
continue using our asset-backed commercial paper programs (FCAR and Motown
Notes SM) and our bank-sponsored commercial paper issuers as long as they
remain cost efficient.
Back-up Credit Facilities and Committed Funding Sources. At March 31, 2002,
we had $34.5 billion of back-up facilities, of which $33.4 billion remains
available to us compared with $33.5 billion at December 31, 2001. About
$12.5 billion of these back-up facilities serve as a liquidity facility for our
FCAR Owner Trust asset-backed commercial paper program.
In addition, as of March 31, 2002, we had approximately $7.3 billion
of available receivables purchase commitments with bank-sponsored
asset-backed commercial paper issuers, about $500 million more than we had at
December 31, 2001.
Debt-to-Equity Ratio
At March 31, 2002, the debt-to-equity ratio was 13.7 compared with
14.8 at year-end and 14.2 at March 31, 2001. In January of 2002, we received a
capital contribution of $700 million from Ford and we made no dividend
payment in the first quarter. We will continue to monitor our leverage and we
expect to maintain our leverage in the range of 13.0 to 1 to 14.0 to 1.
The following table shows the method for calculating our debt-to-equity
ratios:
March 31,
------------------------------------------------
2002 2001 December 31, 2001
---------------------- ---------------------- ----------------------
Debt and Debt and Debt and
Securitized Securitized Securitized
Debt Funding Debt Funding Debt Funding
--------- ------------ ---------- ----------- --------- ------------
(in billions)
Total debt................................... $ 137.9 $ 137.9 $ 147.9 $ 147.9 $ 146.3 $ 146.3
Gross sold receivables outstanding......... - 66.0 - 31.2 - 58.7
Retained interest in sold receivables...... - (9.6) - (3.9) - (12.5)
SFAS No. 133 adjustment, over-borrowing and cash (9.2) (9.2) (2.8) (2.8) (5.0) (5.0)
-------- ------- -------- -------- -------- --------
Adjusted debt....................... $ 128.7 $ 185.1 $ 145.1 $ 172.4 $ 141.3 $ 187.5
======== ======== ======== ======== ======== ========
Total stockholder's equity (including minority
interest)............................ $ 13.1 $ 13.1 $ 11.7 $ 11.7 $ 12.0 $ 12.0
SFAS No. 133 adjustment.............. 0.4 0.4 0.5 0.5 0.6 0.6
-------- ------- -------- -------- -------- --------
Adjusted stockholder's equity........ $ 13.5 $ 13.5 $ 12.2 $ 12.2 $ 12.6 $ 12.6
======== ======== ======== ======== ======== ========
Debt-to-equity ratios including adjustments (to 1) 9.5 13.7 11.9 14.2 11.2 14.8
-15-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
Sales of Receivables and Securitization
The following table illustrates the retail installment sale contracts and
wholesale receivables that support our securitization programs, and
securitization activity in the periods indicated:
Types of Receivables
------------------------------------------------------------------------------------------
First Quarter
-----------------------------------------------------------
2002 2001 Full Year 2001
---------------------------- ------------------------- ---------------------------
Retail Wholesale Total Retail Wholesale Total Retail Wholesale Total
------ --------- ------- ------- --------- ----- ------ --------- -------
Present Period
- --------------
Retail securitization.......... $ 10.1 $ - $ 10.1 $ 7.1 $ - $ 7.1 $ 17.2 $ - $ 17.2
Wholesale securitization....... - - - - - - - 5.3 5.3
Motown notes program........... - 4.3 4.3 - - - - - -
FCAR........................... 1.0 - 1.0 - - - 8.6 3.5 12.1
Bank-sponsored commercial paper - - - - - - 6.2 - 6.2
------ ------ ------ ------ ------ ----- ------ ------ ------
Net proceeds................ $ 11.1 $ 4.3 $ 15.4 $ 7.1 - $ 7.1 $ 32.0 $ 8.8 $ 40.8
Retained interest.............. 0.3 (4.3) (4.0) 0.3 - 0.3 1.5 10.2 11.7
------ ------ ------ ------ ------ ------ ------ ------ ------
Total present period
receivables sold............ $ 11.4 $ - $ 11.4 $ 7.4 $ - $ 7.4 $ 33.5 $ 19.0 $ 52.5
Prior period sold receivables and
paydown activity.................. 36.0 18.6 54.6 22.5 1.3 23.8 7.8 (1.6) 6.2
------ ------ ------ ------ ------ ------ ------ ------ ------
Total sold receivables outstanding
at end of period.................. $ 47.4 $ 18.6 $ 66.0 $ 29.9 $ 1.3 $ 31.2 $ 41.3 $ 17.4 $ 58.7
====== ====== ====== ====== ====== ====== ====== ====== ======
-16-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
Securitization Income
The following table summarizes the pre-tax profit impact of
securitizations reported in investment and other income related to
securitizations for the periods indicated:
First Quarter Full Year 2001
------------------ ------------------------------
(in millions)
2002 2001 2001 2000 1999
-------- -------- --------- -------- --------
Gains on sales of receivables................. $ 217 $ 211 $ 739 $ 14 $ 83
SFAS No. 133 fair value basis adjustment...... (4) (41) (327) - -
------- ------- -------- ------- -------
Net gain................................. $ 213 $ 170 $ 412 $ 14 $ 83
Servicing fees collected...................... 158 91 456 190 136
Interest income from retained securities...... 152 42 379 152 173
Excess spread and other....................... 115 14 186 201 41
------- ------- -------- ------- -------
Total investment and other income related to
securitizations............................. $ 638 $ 317 $ 1,433 $ 557 $ 433
====== ======= ======= ====== ======
Memo:
Total investment and other income related to
securitizations (excluding SFAS No. 133)..... $ 642 $ 358 $ 1,760 $ 557 $ 433
Receivables sold............................... 11,390 7,410 52,533 21,618 12,910
Servicing portfolio as of period-end........... 66,029 31,200 58,748 28,366 19,471
Gain per dollar of retail receivables sold
(excluding SFAS No. 133...................... 1.9% 2.9% 2.2% 0.1% 0.6%
In the first quarter of 2002, securitization revenue reported in
investment and other income related to securitizations was $638 million,
compared with $317 million in the first quarter of 2001. The increase of
$321 million was primarily related to higher servicing fees, interest income
and excess spread resulting from higher outstanding sold receivables.
In the first quarter of 2002, gains on sales of receivables were comparable
with gains reported in the first quarter of 2001. The effect of a higher amount
of retail receivables sold in the first quarter of 2002 was largely offset by a
lower gain per dollar of receivables sold. The gain per dollar of receivables
sold in the first quarter of 2002 was about 2%, down from 3% in the first
quarter of 2001. This decrease resulted from the relatively stable interest rate
environment compared to the declining rate environment a year ago.
-17-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
The Effect of Securitization Activity on Financial Reporting
The sale of receivables has the impact of reducing our financing margins in
the year the receivables are sold as well as in future years. The following
table shows the estimated net after tax impact of securitizations (excluding
SFAS No. 133) for the periods indicated:
First Quarter Full Year
-------------------- --------------------------------
2002 2001 2001 2000 1999
-------- -------- --------- -------- --------
(in millions)
Total investment and other income related to
securitizations (excluding SFAS No. 133).............. $ 642 $ 358 $ 1,760 $ 557 $ 433
Impact of current-year receivable sales on financing
margin................................................ $ (107) $ (63) $(1,059) $ (243) $ (218)
Impact of prior-year receivable sales on financing
margin................................................ (644) (186) (611) (521) (158)
------ ------ ------- ------ ------
Total impact of receivable sales on financing
margin............................................ $ (751) $ (249) $(1,670) $ (764) $ (376)
------ ------ ------- ------ ------
Pre-tax impact of securitization....................... $ (109) $ 109 $ 90 $ (207) $ 57
Provision for income taxes............................. 40 (40) (33) 77 (21)
------ -------- ------- ------ ------
After-tax impact of securitization........................ $ (69) $ 69 $ 57 $ (130) $ 36
====== ======== ======= ====== ======
Memo: First quarter 2002 compared with first quarter 2001.. $ (138) - - - -
The above table does not show the lower cost of secured funding compared
with unsecured funding.
Changes in Accounting Standards
New Accounting Standards. On January 1, 2002, we adopted SFAS No. 142,
Goodwill and Other Intangible Assets. SFAS No. 142 changes the method of
accounting for goodwill and intangible assets. Goodwill and intangible assets
that have indefinite useful lives are no longer amortized, but are subject to an
annual impairment test. As of March 31, 2002, our net goodwill and intangible
assets, having various amortization periods, was approximately $200 million.
Adoption of this standard did not have a material effect on our financial
statements.
The Financial Accounting Standards Board (FASB) plans to issue an
interpretation of Statement of Financial Accounting Standards No. 94,
Consolidation of All Majority-Owned Subsidiaries, that will address issues
related to identifying and accounting for special purpose entities (SPEs). The
scope of the interpretation is expected to exclude QSPEs as defined in SFAS No.
140. The interpretation is expected to introduce a concept that the primary
beneficiary of the activities of a SPE would be required to consolidate the SPE
unless the SPE meets certain independent economic substance criteria. Until the
interpretation is issued in final form, we cannot assess the impact the
interpretation may have on our accounting for SPEs.
We will adopt SFAS No. 145, Rescission of FASB Statements No. 4, 44, and
64, Amendment of FASB Statement No. 13, and Technical Corrections, on
May 15, 2002. SFAS No. 145 describes the accounting by a lessee for certain
lease modifications. Adoption of this standard is not expected to have a
material effect on our financial statements.
Other Financial Information
The interim financial information included in this 10-Q Report has not
been audited by PricewaterhouseCoopers LLP ("PwC"). In reviewing such
information, PwC has applied limited procedures in accordance with professional
standards for reviews of interim financial information. Accordingly, you should
restrict your reliance on their reports on such information. PwC is not subject
to the liability provisions of Section 11 of the Securities Act of 1933 for
their reports on the interim financial information because such reports do not
constitute "reports" or "parts" of the registration statements prepared or
certified by PwC within the meaning of Sections 7 and 11 of the Securities Act
of 1933.
Cautionary Statement Regarding Forward Looking Statements
Statements included in this Report or incorporated by reference into this
Report may constitute "forward-looking statements" within the meaning of the
federal securities laws, including the Private Securities Litigation Reform Act
of 1995. The words "anticipate," "believe," "estimate," "expect," "intend,"
"may," "plan," "will," "project," "future" and "should" and similar expressions
are intended to identify forward-looking statements, and these statements are
based on our current expectations and assumptions concerning future events.
These statements involve a number of risks, uncertainties, and other factors
that could cause actual results to differ materially from those expressed or
implied by such statements, including:
-18-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Continued)
Automotive Related:
o A significant decline in automotive industry sales and our financing of
those sales, particularly in the United States or Europe, resulting from
slowing economic growth or other factors;
o Lower-than-anticipated market acceptance of new or existing Ford
products;
o Increased safety, emissions or other regulations resulting in higher
costs and/or sales restrictions;
o Work stoppages at key Ford or supplier facilities;
o The discovery of defects in Ford vehicles resulting in delays in new
model launches, recall campaigns, increased warranty costs or
litigation;
Ford Credit Related:
o Higher-than-expected credit losses resulting in increased credit loss
reserves;
o Collection and servicing problems related to our finance receivables and
net investment in operating leases;
o Lower-than-anticipated residual values for leased vehicles;
General:
o Currency or interest rate fluctuations;
o Availability of securitization as a source of funding;
o A credit rating downgrade, labor or other constraints on Ford's or our
ability to restructure Ford's or our business;
o Ford's or our inability to implement the Revitalization Plan; and
o Major capital market disruptions that could prevent Ford or us from
having access to the capital markets or that would limit our liquidity.
Additional Information
More information about our business can be found in our 10-K Report. In our
10-K Report, we discuss in greater detail our business, critical accounting
policies, products, market share and volume, receivables, credit losses,
residual risks, securitization and the use of special purpose entities, funding
and liquidity, and capital adequacy. Additionally, our annual financial
statements and selected Ford information are included in our 10-K Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In our 10-K Report, we discuss in greater detail our market risk,
counter-party risk, and operating risk. We assess our exposure to interest rate
changes by performing a sensitivity analysis, that measures the potential loss
in net earnings resulting from a hypothetical increase in interest rates of 100
basis points (or 1%) across all maturities. Under this model, we estimate that
at March 31, 2002, all else constant, such an increase would reduce our net
earnings by approximately $20 million over the next 12 months, compared with $50
million at December 31, 2001. This change is primarily explained by the
reduction of our short-term debt and the increase in our equity though a
suspension of our fourth quarter 2001 and first quarter 2002 dividend payment
to Ford as well as a capital contribution from Ford in January.
-19-
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
Fair Lending Class Action. (Previously discussed on page 7 of the 10-K
Report.) On April 18, 2002, the U.S. District Court, Northern District of
Illinois issued an order denying plaintiff's motion for class certification in
the Rodriguez case. One additional purported nation-wide class action
(Claybrook, et. al. v. PRIMUS) was filed on April 16, 2002 in federal court in
Tennessee against PRIMUS Automotive Financial Services, Inc., a subsidiary of
Ford Credit. Claybrook involves allegations similar to those alleged in Jones.
In addition, any litigation, investigation, proceeding or claim against Ford
that results in Ford incurring significant liability expenditures or costs could
also have a material adverse affect on our business, results of operations,
financial condition and liquidity. For a discussion of pending cases against
Ford see Item 5 of Part II of this Report.
Item 2. Changes in Securities
Not required.
Item 3. Defaults Under Senior Securities
Not required.
Item 4. Submission of Matters to a Vote of Security Holders
Not required.
ITEM 5. Other Information
You can find additional information about Ford's operating results and
material litigation in Part I and Item 1 of Part II of Ford's Quarterly Report
on Form 10-Q for the quarterly period ended March 31, 2002, which has been
included as an exhibit to this Report and is incorporated herein by this
reference.
-20-
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits: please refer to Exhibit Index
(b) Reports on Form 8-K during the quarter ended March 31, 2002:
FINANCIAL
DATE OF REPORT ITEM STATEMENTS FILED
January 3, 2002 Item 5 - Other Events None
January 11, 2002 Item 5 - Other Events None
January 17, 2002 Item 5 - Other Events News Release dated January 17, 2002
of Ford Motor Credit Company
with attachment and news release
dated January 17, 2002 of Ford
Motor Company with attachments.
February 1, 2002 Item 5 - Other Events None
February 22, 2002 Item 5 - Other Events 2001 Audit of Consolidated Financial
Statements of Ford Motor Credit Company
and Subsidiaries together with the
Report of Independent Accountants of
PricewaterhouseCoopers LLP.
March 1, 2002 Item 5 - Other Events None
-21-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FORD MOTOR CREDIT COMPANY
(Registrant)
May 15, 2002 /s/ Bibiana Boerio
Bibiana Boerio
Executive Vice President,
Chief Financial Officer
and Treasurer
-22-
Report of Independent Accountants
To the Board of Directors and Stockholder of
Ford Motor Credit Company:
We have reviewed the accompanying condensed consolidated balance sheets of Ford
Motor Credit Company and Subsidiaries as of March 31, 2002 and 2001, and the
related condensed consolidated statements of income and of earnings retained for
use in the business for each of the three-month periods ended March 31, 2002 and
2001 and the condensed consolidated statements of cash flows for the three-month
periods ended March 31, 2002 and 2001. These financial statements are the
responsibility of the Ford Motor Credit Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated interim financial statements
for them to be in conformity with accounting principles generally accepted in
the United States of America.
We previously audited in accordance with auditing standards generally accepted
in the United States of America, the consolidated balance sheet as of December
31, 2001, and the related consolidated statements of income, stockholder's
equity, and of cash flows for the year then ended (not presented herein), and in
our report dated February 15, 2002, we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the information set forth in
the accompanying condensed consolidated balance sheet as of December 31, 2001 is
fairly stated in all material respects in relation to the consolidated balance
sheet from which it has been derived.
/s/ PricewaterhouseCoopers LLP
Detroit, Michigan
April 16, 2002
-23-
FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
EXHIBIT INDEX
Sequential
Designation Description Method of Filing
------------- ----------- -----------------
Exhibit 12 Calculation of ratio of earnings to Filed with this Report.
fixed charges of Ford Credit
Exhibit 15 Letter from PricewaterhouseCoopers LLP Filed with this Report.
dated May 15, 2002, regarding unaudited
interim financial information.
Exhibit 99 Part I, sections of Item 1 of Part II and Exhibit Filed with this Report
12 of Ford Motor Company's Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2002.
-24-