Item 7.01. Regulation FD Disclosure.

Accounting for Pension and OPEB Plans

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 them over 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 2021
results of approximately $3.5 billion related to our pension and OPEB plans.
This includes a $450 million gain associated with pension plans in the United
States, a $2.7 billion gain associated with pension plans outside the United
States, and a $380 million gain associated with OPEB plans globally. Overall,
the remeasurement gain is primarily explained by higher discount rates compared
with year-end 2020 and by growth asset returns in excess of our assumptions. On
an after-tax basis, the remeasurement gain is expected to increase our net
income by about $2.8 billion. Because the remeasurement gain is a special item,
it will not impact our total Company adjusted EBIT or adjusted earnings per
share. The remeasurement gain did not have an impact on our cash in 2021, and
does not change our expectations for pension contributions in 2022.

Including the impact of remeasurement gains and losses during 2021, we expect
the underfunded status for our pension and OPEB plans to be about $0.3 billion
and $6.0 billion, respectively, at year-end 2021, compared with $6.7 billion and
$6.6 billion, respectively, at year-end 2020. The change to the underfunded
status of our plans in the aggregate primarily reflects the impact of higher
discount rates and continued strong asset performance relative to changes in
discount rates.

Special Items for FY2021 Financial Results



Our news release dated January 18, 2022 concerning several special items,
including the pension and OPEB special item discussed above, is filed as Exhibit
99 to this Report and incorporated by reference herein. The following table
shows, on a preliminary basis, the special items we expect to include in our
results when we report fourth quarter and full year 2021 earnings on February 3,
2022:

                                               Q1 2021          Q2 2021          Q3 2021           Q4 2021           FY 2021
Special Items (in billions)
Pension and OPEB Remeasurement                $   0.1          $   0.3          $   0.0          $    3.5          $    3.9
Rivian - Gain on IPO and mark-to-market           0.9                -                -               8.2               9.1
Debt Extinguishment premium                         -                -                -              (1.7)             (1.7)
Global Redesign                                  (0.4)            (0.1)            (0.7)             (0.5)             (1.7)
Other                                            (0.1)               -                -               0.1              (0.0)
Total EBIT Special Items                      $   0.5          $   0.1

$ (0.7) $ 9.6 $ 9.6

Deferred Tax Asset and Valuation Allowance $ - $ - 

     $     -          $    3.6          $    3.6
Tax on Rivian - Gain on IPO and                  (0.2)               -                -              (1.7)             (1.9)

mark-to-market


Other                                             0.1             (0.1)             0.5              (0.3)              0.2
Total Tax Special Items                       $  (0.1)         $  (0.1)         $   0.5          $    1.6          $    1.9
--------------------------------------------------------------------------------

Item 9.01. Financial Statements and Exhibits.



                                   EXHIBITS*
 Designation      Description                            Method of Filing

   Exhibit 99     News release dated January 18, 2022    Furnished with this Report

 Exhibit 104      Cover Page Interactive Data File       **
                  (formatted in Inline XBRL)

© Edgar Online, source Glimpses