Accumulated Other Comprehensive Income/(Loss) (Notes)

9 Months Ended

Sep. 30, 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 September 30 were as follows (in millions):

	Third Quarter				First Nine Months
	2021		2022		2021		2022
Foreign currency translation
Beginning balance	$	(5,249)	$	(6,355)	$	(5,526)	$	(5,487)
Gains/(Losses) on foreign currency translation	(236)		(996)		112		(2,063)
Less: Tax/(Tax benefit) (a)	66		36		133		5
Net gains/(losses) on foreign currency translation	(302)		(1,032)		(21)		(2,068)
(Gains)/Losses reclassified from AOCI to net income (b)	—		80		(4)		248
Other comprehensive income/(loss), net of tax (c)	(302)		(952)		(25)		(1,820)
Ending balance	$	(5,551)	$	(7,307)	$	(5,551)	$	(7,307)
Marketable securities
Beginning balance	$	81	$	(355)	$	156	$	(19)
Gains/(Losses) on available for sale securities	(26)		(199)		(112)		(647)
Less: Tax/(Tax benefit)	(6)		(47)		(28)		(153)
Net gains/(losses) on available for sale securities	(20)		(152)		(84)		(494)
(Gains)/Losses reclassified from AOCI to net income	(3)		5		(18)		13
Less: Tax/(Tax benefit)	—		1		(4)		3
Net (gains)/losses reclassified from AOCI to net income	(3)		4		(14)		10
Other comprehensive income/(loss), net of tax	(23)		(148)		(98)		(484)
Ending balance	$	58	$	(503)	$	58	$	(503)
Derivative instruments
Beginning balance	$	(455)	$	(143)	$	(266)	$	(193)
Gains/(Losses) on derivative instruments	339		445		(52)		475
Less: Tax/(Tax benefit)	85		105		8		112
Net gains/(losses) on derivative instruments	254		340		(60)		363
(Gains)/Losses reclassified from AOCI to net income	111		35		271		73
Less: Tax/(Tax benefit)	22		8		57		19
Net (gains)/losses reclassified from AOCI to net income (d)	89		27		214		54
Other comprehensive income/(loss), net of tax	343		367		154		417
Ending balance	$	(112)	$	224	$	(112)	$	224
Pension and other postretirement benefits
Beginning balance	$	(2,645)	$	(2,620)	$	(2,658)	$	(2,640)
Amortization and recognition of prior service costs/(credits)	4		5		24		17
Less: Tax/(Tax benefit)	4		1		8		4
Net prior service costs/(credits) reclassified from AOCI to net income	—		4		16		13
Translation impact on non-U.S. plans	5		9		2		20
Other comprehensive income/(loss), net of tax	5		13		18		33
Ending balance	$	(2,640)	$	(2,607)	$	(2,640)	$	(2,607)
Total AOCI ending balance at September 30	$	(8,245)	$	(10,193)	$	(8,245)	$	(10,193)

__________

(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)Excludes a $3 million gain and a $1 million loss related to noncontrolling interests in the third quarter and first nine months of 2022, respectively.

(d)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify existing net gains on cash flow hedges of $225 million (see Note 16).