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Ford Motor Company | 2013 Annual Report 105
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. RETIREMENT BENEFITS (Continued)
Pension Plan Contributions
Our policy for funded pension plans is to contribute annually, at a minimum, amounts required by applicable laws and
regulations. We may make contributions beyond those legally required.
In 2013, we contributed $5 billion to our worldwide funded pension plans (including $3.4 billion in discretionary
contributions to our U.S. plans) and made $400 million of benefit payments to participants in unfunded plans. During
2014, we expect to contribute about $1.5 billion from Automotive cash and cash equivalents to our worldwide funded
plans (most of which are mandatory contributions) and to make $400 million of benefit payments to participants in
unfunded plans, for a total of about $1.9 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 2014.
Curtailments and Settlements
In April 2012, we announced a program to offer voluntary lump-sum pension payout options to eligible salaried U.S.
retirees and former salaried employees that, if accepted, would settle our obligation to them. The program provided
participants with a one-time choice of electing to receive a lump-sum settlement of their remaining pension benefit. As
part of this voluntary lump-sum program, the Company settled $4.2 billion of its pension obligations for U.S. salaried
retirees ($1.2 billion in 2012 and $3 billion in 2013) with an equal amount paid from plan assets. As a result, we recorded
settlement losses of $844 million ($250 million in 2012 and $594 million in 2013) reflecting the accelerated recognition of
unamortized losses in the salaried plan proportionate to the obligation that was settled. These settlement charges were
recorded in Automotive cost of sales and Selling, administrative, and other expenses with a corresponding balance sheet
reduction in Accumulated other comprehensive income/(loss).
In 2011, we recognized a settlement loss of $109 million associated with the partial settlement of a Belgium pension
plan.
Business Restructurings
In October 2012, we announced a plan to restructure our European manufacturing operations as discussed in
Note 21. In 2013, we recognized pension-related employee separation costs of $180 million which are recorded in
Automotive cost of sales and Selling, administrative, and other expenses.
Estimated Future Benefit Payments and Amortization
The following table presents estimated future gross benefit payments (in millions):
Gross Benefit Payments
Pension
U.S. Plans
Non-U.S.
Plans
Worldwide
OPEB
2014 $ 3,190 $1,380 $420
2015 3,150 1,380 380
2016 3,110 1,390 380
2017 3,060 1,430 370
2018 3,030 1,450 370
2019 - 2023 14,810 7,820 1,850
The amounts in Accumulated other comprehensive income/(loss) that are expected to be recognized as components
of net expense/(income) during 2014 are as follows (in millions):
Pension Benefits
U.S. Plans
Non-U.S.
Plans
Worldwide
OPEB Total
Prior service cost/(credit) $ 155 $ 56 $ (231) $ (20)
(Gains)/Losses 207 598 98 903
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