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Check the appropriate box below if the Form 8-K filing is intended to simultaneously
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
iCommon
Stock, par value $.01 per share
iF
iNew York Stock Exchange
i6.200%
Notes due June 1, 2059
iFPRB
iNew York Stock Exchange
i6.000%
Notes due December 1, 2059
iFPRC
iNew York Stock Exchange
i6.500%
Notes due August 15, 2062
iFPRD
iNew York Stock Exchange
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registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company i☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
Ford Motor Company uses the mark-to-market method of accounting for pension and other postretirement employee benefits (OPEB). Under this method, we recognize pension and OPEB remeasurement gains and losses in income when incurred rather than amortizing themover time as a component of net periodic benefit cost. The remeasurement gains and losses are reported as special items since we believe they are
not reflective of our ongoing operating activities.
We expect to record a pre-tax remeasurement gain in our fourth quarter 2022 results of approximately $50 million related to our pension and OPEB plans. This includes a $1.7 billion loss associated with pension plans in the United States, a $450 million gain associated with pension plans outside the United States, and a $1.3 billion gain associated with OPEB plans globally. Overall, the small remeasurement gain is primarily explained by higher discount rates compared with year-end 2021 largely offset by pension asset returns that were lower than our assumptions. On an after-tax basis, the remeasurement is expected to decrease our net income by about $220 million. The decrease is due to the net deferred tax expense we expect to recognize as a result of the variability in tax rates in the jurisdictions where there are remeasurement gains or losses. Because
the remeasurement is a special item, it will not impact our total Company adjusted EBIT or adjusted earnings per share. The remeasurement did not have an impact on our cash in 2022, and does not change our expectations for pension contributions in 2023. In aggregate, our funded plans remain fully funded.
Including the impact of remeasurement gains and losses during 2022, we expect the underfunded status for our pension and OPEB plans to be about $0.2 billion and $4.5 billion, respectively, at year-end 2022, compared with $0.3 billion and $6.0 billion, respectively, at year-end 2021. The change to the underfunded status of our plans in the aggregate primarily reflects the impact of higher discount rates.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.