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132 Ford Motor Company | 2012 Annual Report
FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)
The following table summarizes the changes in the accumulated balances for each component of AOCI attributable to
Ford Motor Company for the years ended December 31 (in millions):
2012 2011 2010
Foreign currency translation
Beginning balance $ (1,383) $ (665) $ 1,568
Net gain/(loss) on foreign currency translation (net of tax of $0, $2 and $2) 157 (697) (497)
Reclassifications to net income (a) (15)(21)(1,736)
Other comprehensive income/(loss), net of tax (b) 142 (718)(2,233)
Ending balance $ (1,241) $ (1,383) $ (665)
Derivative instruments (e)
Beginning balance $ (181) $ (29) $ (5)
Net gain/(loss) on derivative instruments (net of tax benefit of $115, $29 and $1) (256)(71) (6)
Reclassifications to net income (net of tax of $115, tax benefit of $38 and tax of $1) (c) 262 (81)(18)
Other comprehensive income/(loss), net of tax 6 (152)(24)
Ending balance $ (175) $ (181) $ (29)
Pension and other postretirement benefits
Beginning balance $ (17,170) $ (13,617) $ (12,427)
Prior service cost arising during the period (net of tax benefit of $1, $35 and $1) (31) 56 60
Net gain/(loss) arising during the period (net of tax benefit of $2,238, $1,461 and tax of
$142) (4,693) (4,229)(1,690)
Amortization of prior service cost included in net income (net of tax benefit of $100, $183
and tax of $4) (d) (164)(40) (230)
Amortization of (gain)/loss included in net income (net of tax of $404, $69 and $0) (d) 812 631 354
Translation impact on non-U.S. plans (192) 29 316
Other comprehensive income/(loss), net of tax (4,268) (3,553)(1,190)
Ending balance $ (21,438) $ (17,170) $ (13,617)
Net holding gain/(loss)
Beginning balance $ — $ (2) $ —
Reclassifications to net income — 2(2)
Ending balance $ — $ — $ (2)
Total AOCI ending balance at December 31 $ (22,854) $ (18,734) $ (14,313)
__________
(a) The accumulated translation adjustments related to an investment in a foreign subsidiary are reclassified to net income upon sale or upon complete
or substantially complete liquidation of the entity and are recognized in Automotive interest income and other income/(loss), net or Financial
Services other income/(loss), net. The adjustment for 2010 primarily relates to the sale of Volvo.
(b) There were losses of $2 million and $1 million attributable to noncontrolling interests in 2011 and 2010, respectively.
(c) Gain/(loss) on cash flow hedges is reclassified from AOCI to income when the hedged item affects earnings and is recognized in Automotive cost of
sales.
(d) These AOCI components are included in the computation of net periodic pension cost. See Note 16 for additional details.
(e) We expect to reclassify existing net losses of $265 million from Accumulated other comprehensive income/(loss) to Automotive cost of sales during
the next twelve months as the underlying exposures are realized.