Ford 2014 Annual Report Download - page 138

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FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 12. RETIREMENT BENEFITS (Continued)
Defined Benefit Plans – Expense and Status
The assumptions used to determine expense and benefit obligation were as follows:
Pension Benefits
U.S. Plans Non-U.S. Plans U.S. OPEB
2014 2013 2014 2013 2014 2013
Weighted Average Assumptions at December 31
Discount rate 3.94%4.74%3.06%4.07%3.86% 4.65%
Expected long-term rate of return on assets 6.75 6.89 6.11 6.63 — —
Average rate of increase in compensation 3.80 3.80 3.40 3.41 3.80 3.80
Assumptions Used to Determine Net Benefit Cost for the
Year Ended 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
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
2014 2013 2012 2014 2013 2012 2014 2013 2012
Service cost $ 507 $ 581 $ 521 $468 $484 $372 $ 54 $ 64 $ 67
Interest cost 1,992 1,914 2,208 1,189 1,137 1,189 269 256 290
Expected return on assets (2,713) (2,816) (2,873) (1,508) (1,382) (1,340) — — —
Amortization of:
Prior service costs/(credits) 155 174 220 55 66 72 (229)(283) (545)
(Gains)/Losses 207 655 425 586 686 412 98 158 129
Separation programs/other 19 10 7 81 242 162 — — 2
Recognition of (gains)/losses due to:
Curtailments — — — — — — — (2) (11)
Settlements — 594 250 19 5————
Total expense/(income) $ 167 $ 1,112 $758 $890 $1,238 $867 $192 $193 $(68)
FS-32