Ford 2011 Annual Report Download - page 134

Notes to the Financial Statements
132 Ford Motor Company | 2011 Annual Report
NOTE 17. RETIREMENT BENEFITS (Continued)
As a result of the UAW Retiree Health Care Settlement Agreement and various personnel-reduction programs
(discussed in Note 21), we have recognized curtailments and settlements in the U.S. and Canadian pension and OPEB
plans. We also recognized in 2011 a settlement loss associated with the partial settlement of a Belgium pension plan.
The financial impact of the curtailments and settlements is reflected in the tables above and is recorded in Automotive
cost of sales and Selling, administrative and other expenses.
Weighted Average Assumptions Used to Measure our
Benefit Obligations and Plan Assets at December 31
Discount rate
Expected return on assets
Average rate of increase in compensation
Assumptions Used to Determine Net Benefit Cost for the
Year Ended December 31
Discount rate
Expected return on assets
Average rate of increase in compensation
Pension Benefits
U.S. Plans
2011
4.64%
7.50%
3.80%
5.24%
8.00%
3.80%
2010
5.24%
8.00%
3.80%
5.86%
8.25%
3.80%
Non-U.S. Plans
2011
4.84%
6.77%
3.39%
5.31%
7.20%
3.34%
2010
5.31%
7.20%
3.34%
5.68%
7.17%
3.15%
U.S. OPEB
2011
4.60%
—
3.80%
5.20%
—
3.80%
2010
5.20%
—
3.80%
5.74%
—
3.80%
The amounts in Accumulated other comprehensive income/(loss) that are expected to be recognized as components
of net expense/(income) during the next year are as follows (in millions):
Prior service cost/(credit)
(Gains)/Losses and other
Pension Benefits
U.S. Plans
$220
425
Non-U.S.
Plans
$70
403
Worldwide
OPEB
$(544)
129
Total
$ (254)
957
Pension Plan Contributions
In 2011, we contributed $1.1 billion to our worldwide funded pension plans and made $400 million of benefit payments
directly by the Company for unfunded plans. During 2012, we expect to contribute from Automotive cash and cash
equivalents $3.5 billion to our worldwide funded plans (including discretionary contributions to our U.S. plans of $2 billion),
and to make $350 million of benefit payments directly by the Company for unfunded plans, for a total of about $3.8 billion.
Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major U.S.
pension plans in 2012.
Estimated Future Benefit Payments
The following table presents estimated future gross benefit payments (in millions):
2012
2013
2014
2015
2016
2017 - 2021
Gross Benefit Payments
Pension
U.S. Plans
$3,520
3,430
3,350
3,290
3,220
15,430
Non-U.S.
Plans
$1,290
1,290
1,300
1,330
1,340
7,150
Worldwide
OPEB
$460
430
420
410
400
1,980