Ford 2002 Annual Report Download - page 87

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83
NOTES TO FINANCIAL STATEMENTS
In general, our plans are funded, with the main exceptions of the U.S. defined benefit plans for senior management and cer-
tain plans in Germany; in such cases, an unfunded liability is recorded.
Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations, and
union agreements. Plan assets consist principally of investments in stocks and government and other fixed income securi-
ties. At December 31, 2002, stocks represented 68% of the market value of pension assets for our principal U.S. plans and
fixed income securities represented 32%. Ford securities comprised less than one-half of one percent of the value of our
worldwide pension plan assets during 2002 and 2001.
We also sponsor defined contribution plans for certain of our U.S. and non-U.S. employees. Our expense, primarily for
matching contributions, for various plans was $23 million in 2002, $167 million in 2001, and $159 million in 2000.
POSTRETIREMENT HEALTH CARE AND LIFE INSURANCE BENEFITS
We, and certain of our subsidiaries, sponsor plans to provide selected health care and life insurance benefits for retired
employees. Our U.S. and Canadian employees generally may become eligible for those benefits if they retire; however, ben-
efits and eligibility rules may be modified from time to time. Postretirement health care and life insurance expense accruals
for hourly employees assigned to Visteon and for salaried Visteon employees who met certain age and service conditions at
June 30, 2000 are charged to Visteon. A portion of U.S. hourly and salary retiree health and life insurance benefits has been
prepaid. At December 31, 2002, the market value of this pre-funding was $2.8 billion, including $1.9 billion of Visteon prom-
issory notes contributed to a segregated trust.
Our expense for pension, postretirement health care and life insurance benefits was as follows (in millions):
Pension Benefits Health Care and Life Insurance
U.S. Plans Non-U.S. Plans
2002 2001 2000 2002 2001 2000 2002 2001 2000
Service cost $ 556 $ 531 $ 495 $ 377 $ 396 $ 405 $ 427 $ 374 $ 320
Interest cost 2,453 2,410 2,345 977 974 918 1,801 1,697 1,483
Expected return on assets (3,646) (3,697) (3,281) (1,265) (1,184) (1,162) (85) (161) (135)
Amortization of:
Prior service costs 529 532 620 137 138 133 (145) (114) (38)
(Gains)/losses and other (130) (367) (418) 25 (101) 17 310 161 28
Separation programs 107 303 122 39 8 184* 16 114 54
Allocated costs to Visteon (62) (58) (71) --- (228) (149) (159)
Net expense/(income) $ (193) $ (346) $ (188) $ 290 $ 231 $ 495 $ 2,096 $1,922 $1,553
* Reflects reclassification of portion of restructuring reserve established in 2000.
Ford Fusion (Europe)