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96 FORD MOTOR COMPANY
NOTES TO FINANCIAL STATEMENTS
Health Care and
Pension Benefits Life Insurance
U.S. Plans Non-U.S. Plans
2003 2002 2003 2002 2003 2002
Amounts Recognized in the Balance
Sheet Consist of Assets/(Liabilities)
Prepaid assets $ 5,230 $ 3,429 $ 2,724 $ 1,728 $-$-
Accrued liabilities (5,807) (8,921) (7,792) (7,449) (19,074) (18,167)
Intangible assets 2,916 2,797 874 890 --
Accumulated other comprehensive income 1,771 4,992 3,864 4,154 --
Net amount recognized $ 4,110 $ 2,297 $ (330) $ (677) $ (19,074) $ (18,167)
Pension Plans in Which Accumulated
Benefit Obligation Exceeds Plan Assets
at December 31
Accumulated benefit obligation $ 22,334 $ 35,305 $ 21,145 $ 17,569
Fair value of plan assets 19,378 29,773 15,832 11,756
Accumulated Benefit Obligation
at December 31 $ 38,786 $ 35,394 $ 21,797 $ 18,110
Weighted Average Assumptions at
December 31
Discount rate 6.25% 6.75% 5.61% 5.65% 6.25% 6.75%
Expected return on assets 8.75% 8.75% 8.38% 8.40% 6.20% 6.00%
Average rate of increase in compensation 4.50% 5.20% 3.80% 3.80% --
Initial health care cost trend rate ----9% 11%
Ultimate health care cost trend rate ----5% 5%
Year ultimate trend rate is reached ----2010 2008
Assumptions Used to Determine Net Benefit
Cost for the Year Ending December 31
Discount rate 6.75% 7.25% 5.65% 6.10% 6.75% 7.25%
Expected return on assets 8.75% 9.50% 8.40% 8.70% 6.00% 6.00%
Average rate of increase in compensation 5.20% 5.20% 3.80% 3.80% --
Weighted Average Asset
Allocation at December 31
Equity securities 72.2% 67.0% 63.7% 58.7% 0.0% 0.0%
Debt securities 26.3% 31.9% 34.5% 39.5% 100.0% 100.0%
Real estate 0.2% 0.3% 1.1% 1.2% 0.0% 0.0%
Other assets 1.3% 0.8% 0.7% 0.6% 0.0% 0.0%
A one percentage point increase/(decrease) in the assumed health care cost trend rate would increase/(decrease) the postretire-
ment health care benefit obligation by approximately $4.6 billion/$(3.8) billion and the service and interest component of health
care expense by $310 million/$(260) million.
NOTE 19. Retirement Benefits (continued)
FIN73_104 3/22/04 6:51 PM Page 96