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Ford Motor Company | 2013 Annual Report 103
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. RETIREMENT BENEFITS (Continued)
Defined Benefit Plans – Expense and Status
The following table summarizes the assumptions used to determine expense and benefit obligation:
Pension Benefits
U.S. Plans Non-U.S. Plans U.S. OPEB
2013 2012 2013 2012 2013 2012
Weighted Average Assumptions at December 31
Discount rate 4.74%3.84%4.07%3.92%4.65% 3.80%
Expected long-term rate of return on assets 6.89 7.38 6.63 6.74 — —
Average rate of increase in compensation 3.80 3.80 3.41 3.41 3.80 3.80
Assumptions Used to Determine Net Benefit Cost for the
Year Ended December 31
Discount rate 3.84%4.64%3.92%4.84%3.80% 4.60%
Expected long-term rate of return on assets 7.38 7.50 6.74 6.77 — —
Average rate of increase in compensation 3.80 3.80 3.41 3.39 3.80 3.80
The measurement date for all of our worldwide postretirement benefit plans is December 31. The pre-tax expense for
our defined benefit pension and OPEB plans for the years ended December 31 was as follows (in millions):
Pension Benefits
U.S. Plans Non-U.S. Plans Worldwide OPEB
2013 2012 2011 2013 2012 2011 2013 2012 2011
Service cost $ 581 $ 521 $ 467 $484 $372 $327 $ 64 $ 67 $ 63
Interest cost 1,914 2,208 2,374 1,137 1,189 1,227 256 290 327
Expected return on assets (2,816) (2,873) (3,028) (1,382) (1,340) (1,404) — — —
Amortization of:
Prior service costs/(credits) 174 220 343 66 72 72 (283)(545) (612)
(Gains)/Losses 655 425 194 686 412 301 158 129 94
Separation programs/other 10 7 1 242 162 170 —210
(Gains)/Losses from curtailments and
settlements 594 250 — 5 — 111 (2) (11)(26)
Net expense/(income) $ 1,112 $ 758 $ 351 $1,238 $867 $804 $193 $(68) $ (144)
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