Ford 2014 Annual Report Download - page 140

FORD MOTOR COMPANY AND SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 12. RETIREMENT BENEFITS (Continued)
Pension Plan Contributions
Our policy for funded pension plans is to contribute annually, at a minimum, amounts required by applicable laws and
regulations. We may make contributions beyond those legally required.
In 2014, we contributed $1.5 billion to our worldwide funded pension plans (most of which were mandatory
contributions) and made about $400 million of benefit payments to participants in unfunded plans. During 2015, we
expect to contribute about $1.1 billion from Automotive cash and cash equivalents to our worldwide funded pension plans
(most of which are mandatory contributions) and to make about $400 million of benefit payments to participants in
unfunded plans, for a total of about $1.5 billion. Based on current assumptions and regulations, we do not expect to have
a legal requirement to contribute to our major U.S. pension plans in 2015.
Curtailments and Settlements
In April 2012, we announced a program to offer voluntary lump-sum pension payout options to eligible salaried
U.S. retirees and former salaried employees that, if accepted, would settle our obligation to them. The program provided
participants with a one-time choice of electing to receive a lump-sum settlement of their remaining pension benefit. As
part of this voluntary lump-sum program, the Company settled $4.2 billion of its pension obligations for U.S. salaried
retirees ($1.2 billion in 2012 and $3 billion in 2013) with an equal amount paid from plan assets. As a result, we recorded
settlement losses of $844 million ($250 million in 2012 and $594 million in 2013) reflecting the accelerated recognition of
unamortized losses in the salaried plan proportionate to the obligation that was settled. These settlement charges were
recorded in Automotive cost of sales and Selling, administrative, and other expenses with a corresponding balance sheet
reduction in Accumulated other comprehensive income/(loss).
Separation Programs
As a result of various employee separation programs, primarily in Europe, we have recognized pension-related
expense in the periods presented. See Note 20 for additional information.
Estimated Future Benefit Payments and Amortization
The following table presents estimated future gross benefit payments (in millions):
Gross Benefit Payments
Pension
U.S. Plans
Non-U.S.
Plans
Worldwide
OPEB
2015 $ 3,070 $1,340 $390
2016 3,030 1,290 390
2017 2,990 1,310 380
2018 2,960 1,330 380
2019 2,940 1,360 380
2020 - 2024 14,440 7,220 1,830
The amounts in Accumulated other comprehensive income/(loss) that are expected to be recognized as components
of net expense/(income) during 2015 are as follows (in millions):
Pension Benefits
U.S. Plans
Non-U.S.
Plans
Worldwide
OPEB Total
Prior service cost/(credit) $ 155 $ 49 $ (209)$ (5)
(Gains)/Losses 397 835 145 1,377
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