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Ford Motor Company Annual Report 2005 90 Ford Motor Company Annual Report 2005 91
Notes to the Financial Statements
NOTE 23. RETIREMENT BENEFITS (Continued)
The year-end status of these plans was as follows (dollar amounts in millions):
Pension Benefits Health Care and
U.S. Plans Non-U.S. Plans Life Insurance
2005 2004 2005 2004 2005 2004
Change in Benefit Obligation
Benefit obligation at January 1 ...............................................................
.
$ 43,077 $ 40,463 $ 29,452 $ 24,790 $ 39,115 $ 32,362
Service cost...........................................................................................
.
734 636 630 554 710 542
Interest cost...........................................................................................
.
2,398 2,445 1,408 1,332 2,188 1,965
Amendments .........................................................................................
.
— — 218 118 (3,155) 2
Separation programs .............................................................................
.
179 74 422 78 1 —
Plan participant contributions...............................................................
.
41 42 146 144 33 31
Benefits paid .........................................................................................
.
(2,856) (2,832) (1,355) (1,160) (1,576) (1,540)
Foreign exchange translation................................................................
.
— — (2,936) 1,944 110 86
Divestiture.............................................................................................
.
(400) — (163) — (20) —
Actuarial (gain)/loss .............................................................................
.
722 2,249 2,878 1,652 1,868 5,667
Benefit obligation at December 31 .........................................................
.
$ 43,895 $ 43,077 $ 30,700 $ 29,452 $ 39,274 $ 39,115
Change in Plan Assets
Fair value of plan assets at January 1 .....................................................
.
$ 39,628 $ 37,016 $ 20,595 $ 16,548 $ 6,762 $ 3,565
Actual return on plan assets..................................................................
.
3,922 4,568 3,239 1,936 621 397
Company contributions ........................................................................
.
1,432 872 1,355 1,775 200 2,800
Plan participant contributions...............................................................
.
41 42 150 144 — —
Benefits paid .........................................................................................
.
(2,856) (2,832) (1,355) (1,160) (1,111) —
Foreign exchange translation................................................................
.
— — (1,924) 1,321 — —
Divestiture.............................................................................................
.
(309) — (95) — — —
Other .....................................................................................................
.
(1) (38) (38) 31 25 —
Fair value of plan assets at December 31 ...............................................
.
$ 41,857 $ 39,628 $ 21,927 $ 20,595 $ 6,497 $ 6,762
Funded status ..........................................................................................
.
$ (2,038) $ (3,449) $ (8,773) $ (8,857) $ (32,777) $ (32,353)
Unamortized prior service costs .............................................................
.
2,635 3,146 912 853 (4,054) (1,128)
Unamortized net (gains)/losses and other...............................................
.
4,864 4,838 8,609 8,794 17,009 16,054
Net amount recognized.........................................................................
.
$ 5,461 $ 4,535 $ 748 $ 790 $ (19,822) $ (17,427)
Amounts Recognized on the Balance Sheet Consisting of
Assets/(Liabilities)
Prepaid assets..........................................................................................
.
$ 2,398 $ 2,460 $ 1,710 $ 1,566 $ — $ —
Accrued liabilities ...................................................................................
.
(1,568) (2,643) (6,009) (5,364) (19,822) (17,427)
Intangible assets......................................................................................
.
2,133 2,517 657 526 — —
Accumulated other comprehensive income............................................
.
2,498 2,201 4,390 4,062 — —
Net amount recognized.........................................................................
.
$ 5,461 $ 4,535 $ 748 $ 790 $ (19,822) $ (17,427)
Pension Plans in Which Accumulated Benefit Obligation
Exceeds Plan Assets at December 31
Accumulated benefit obligation..............................................................
.
$ 24,344 $ 23,583 $ 17,217 $ 18,580
Fair value of plan assets..........................................................................
.
22,807 20,940 11,454 13,145
Accumulated Benefit Obligation at December 31 ...............................
.
$ 42,280 $ 41,096 $ 26,060 $ 25,866
Weighted Average Assumptions at December 31
Discount rate ...........................................................................................
.
5.61% 5.75% 4.58% 5.18% 5.73% 5.75%
Expected return on assets........................................................................
.
8.50% 8.75% 7.78% 7.76% 8.28% 7.93%
Average rate of increase in compensation..............................................
.
4.00% 4.50% 3.44% 4.00% 4.00% 4.50%
Initial health care cost trend rate.............................................................
.
— — — — 7% 9%
Ultimate health care cost trend rate ........................................................
.
— — — — 5% 5%
Year ultimate trend rate is reached .........................................................
.
— — — — 2011 2011
Assumptions Used to Determine Net Benefit Cost for the Year
Ending December 31
Discount rate ...........................................................................................
.
5.75% 6.25% 5.18% 5.61% 5.75% 6.25%
Expected return on assets........................................................................
.
8.75% 8.75% 7.76% 8.38% 7.93% 6.20%
Average rate of increase in compensation..............................................
.
4.50% 4.50% 4.00% 3.98% 4.50% 4.50%
Weighted Average Asset Allocation at December 31*
Equity securities......................................................................................
.
72.8% 72.7% 65.3% 62.4% 66.2% 54.3%
Debt securities.........................................................................................
.
26.7% 26.7% 33.7% 36.4% 33.8% 45.7%
Real estate ...............................................................................................
.
0.0% 0.0% 0.7% 0.9% 0.0% 0.0%
Other assets .............................................................................................
.
0.5% 0.6% 0.3% 0.3% 0.0% 0.0%
__________
* Weighted average asset allocation based on major non-U.S. plans including U.K., Canada, Germany, Sweden, Netherlands, Belgium and Australia.