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Notes to the Financial Statements
Ford Motor Company | 2010 Annual Report 125
NOTE 18. RETIREMENT BENEFITS (Continued)
Pension Benefits
Pension BenefitsPension Benefits
Pension Benefits
U.S. Plans
U.S. PlansU.S. Plans
U.S. Plans
Non
NonNon
Non-
---U.S. Plans
U.S. PlansU.S. Plans
U.S. Plans
U.S. OPEB
U.S. OPEBU.S. OPEB
U.S. OPEB
20
2020
2010
1010
10
2009
20092009
2009
20
2020
2010
1010
10
2009
20092009
2009
20
2020
2010
1010
10
2
222009
009009
009
Weighted Average Assumptions at December 31
Weighted Average Assumptions at December 31Weighted Average Assumptions at December 31
Weighted Average Assumptions at December 31*
***
Discount rate................................................................
............
5.24%
5.86%
5.31%
5.68%
5.20%
5.74%
Expected return on assets ................................
.......................
8.00%
8.25%
7.20%
7.17%
— —
Average rate of increase in compensation
...............................
3.80%
3.80%
3.17%
3.15%
3.80%
3.80%
Assumptions Used to Determine Net Benefit Cost for the Year
Assumptions Used to Determine Net Benefit Cost for the YearAssumptions Used to Determine Net Benefit Cost for the Year
Assumptions Used to Determine Net Benefit Cost for the Year*
***
Discount rate ................................................................
...........
5.86%
6.50%
5.68%
5.93%
5.74%
4.95%
Expected return on assets ................................
.......................
8.25%
8.25%
7.17%
7.11%
— 4.67%
Average rate of increase in compensation
...............................
3.80%
3.80%
3.15%
3.13%
3.80%
3.80%
_______
* Excludes Volvo.
As a result of the UAW Retiree Health Care Settlement Agreement and various personnel-reduction programs
(discussed in Note 22), we have recognized curtailments and settlements in the U.S. and Canadian pension and OPEB
plans. The financial impact of the curtailments and settlements is reflected in the tables above and is recorded in
Automotive cost of sales and Selling, administrative and other expenses.
The amounts in Accumulated other comprehensive income/(loss) that are expected to be recognized as components
of net expense/(income) during the next year are as follows (in millions):
Pension Benefits
Pension BenefitsPension Benefits
Pension Benefits
U.S. Plans
U.S. PlansU.S. Plans
U.S. Plans
Non
NonNon
Non-
---U.S.
U.S. U.S.
U.S.
Plans
PlansPlans
Plans
Worldwide
Worldwide Worldwide
Worldwide
OPEB
OPEBOPEB
OPEB
Total
TotalTotal
Total
Prior service cost/(credit) ................................................................
..............
$ 343 $ 70 $ (608) $ (195)
(Gains)/Losses and other................................................................
..............
194 298 117 609
Pension Plan Contributions
In 2010, we contributed $1 billion to our worldwide funded pension plans (including Volvo) and made $400 million of
benefit payments directly by the Company for unfunded plans (including Volvo). During 2011, we expect to contribute from
Automotive cash and cash equivalents $1.2 billion to our worldwide funded plans, and to make $400 million of benefit
payments directly by the Company for unfunded plans, for a total of $1.6 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 2011.
Estimated Future Benefit Payments
The following table presents estimated future gross benefit payments (in millions):
Gross Benefit Payments
Gross Benefit PaymentsGross Benefit Payments
Gross Benefit Payments
Pension
PensionPension
Pension
U.S. Plans
U.S. PlansU.S. Plans
U.S. Plans
Non
NonNon
Non-
---U.S.
U.S. U.S.
U.S.
Plans
PlansPlans
Plans
Worldwide
Worldwide Worldwide
Worldwide
OPEB
OPEBOPEB
OPEB
2011................................................................................................
............
$ 3,640 $ 1,300 $ 460
2012................................................................................................
..............
3,560 1,330 450
2013................................................................................................
..............
3,460 1,330 450
2014................................................................................................
..............
3,380 1,350 440
2015................................................................................................
............
3,300 1,370 430
2016 - 2020................................................................
................................
15,680 7,260 2,110