Accumulated Other Comprehensive Income/(Loss) (Notes)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The changes in the balances for each component of accumulated other comprehensive income/(loss) attributable to Ford Motor Company for the periods ended March 31 were as follows (in millions):

	First Quarter
	2021		2022
Foreign currency translation
Beginning balance	$	(5,526)	$	(5,487)
Gains/(Losses) on foreign currency translation	394		(71)
Less: Tax/(Tax benefit) (a)	97		(96)
Net gains/(losses) on foreign currency translation	297		25
(Gains)/Losses reclassified from AOCI to net income (b)	(8)		121
Other comprehensive income/(loss), net of tax	289		146
Ending balance	$	(5,237)	$	(5,341)
Marketable securities
Beginning balance	$	156	$	(19)
Gains/(Losses) on available for sale securities	(76)		(330)
Less: Tax/(Tax benefit)	(19)		(77)
Net gains/(losses) on available for sale securities	(57)		(253)
(Gains)/Losses reclassified from AOCI to net income	(11)		—
Less: Tax/(Tax benefit)	(3)		—
Net (gains)/losses reclassified from AOCI to net income	(8)		—
Other comprehensive income/(loss), net of tax	(65)		(253)
Ending balance	$	91	$	(272)
Derivative instruments
Beginning balance	$	(266)	$	(193)
Gains/(Losses) on derivative instruments	(381)		156
Less: Tax/(Tax benefit)	(74)		37
Net gains/(losses) on derivative instruments	(307)		119
(Gains)/Losses reclassified from AOCI to net income	7		32
Less: Tax/(Tax benefit)	1		7
Net (gains)/losses reclassified from AOCI to net income (c)	6		25
Other comprehensive income/(loss), net of tax	(301)		144
Ending balance	$	(567)	$	(49)
Pension and other postretirement benefits
Beginning balance	$	(2,658)	$	(2,640)
Amortization and recognition of prior service costs/(credits)	3		6
Less: Tax/(Tax benefit)	1		1
Net prior service costs/(credits) reclassified from AOCI to net income	2		5
Translation impact on non-U.S. plans	(1)		3
Other comprehensive income/(loss), net of tax	1		8
Ending balance	$	(2,657)	$	(2,632)
Total AOCI ending balance at March 31	$	(8,370)	$	(8,294)

__________

(a)We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. However, we have made elections to tax certain non-U.S. operations simultaneously in U.S. tax returns, and have recorded deferred taxes for temporary differences that will reverse, independent of repatriation plans, in U.S. tax returns. Taxes or tax benefits resulting from foreign currency translation of the temporary differences are recorded in Other comprehensive income/(loss), net of tax.

(b)Reclassified to Other income/(loss), net.

(c)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify existing net gains on cash flow hedges of $11 million (see Note 15).