Accumulated Other Comprehensive Income/(Loss) (Notes)

9 Months Ended

Sep. 30, 2021

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
	2020		2021		2020		2021
Foreign currency translation
Beginning balance	$	(6,181)	$	(5,249)	$	(4,626)	$	(5,526)
Gains/(Losses) on foreign currency translation	(126)		(236)		(1,673)		112
Less: Tax/(Tax benefit) (a)	(60)		66		(83)		133
Net gains/(losses) on foreign currency translation	(66)		(302)		(1,590)		(21)
(Gains)/Losses reclassified from AOCI to net income (b)	(3)		—		(34)		(4)
Other comprehensive income/(loss), net of tax (c)	(69)		(302)		(1,624)		(25)
Ending balance	$	(6,250)	$	(5,551)	$	(6,250)	$	(5,551)
Marketable securities
Beginning balance	$	184	$	81	$	71	$	156
Gains/(Losses) on available for sale securities	(8)		(26)		157		(112)
Less: Tax/(Tax benefit)	(2)		(6)		36		(28)
Net gains/(losses) on available for sale securities	(6)		(20)		121		(84)
(Gains)/Losses reclassified from AOCI to net income	(15)		(3)		(33)		(18)
Less: Tax/(Tax benefit)	(4)		—		(8)		(4)
Net (gains)/losses reclassified from AOCI to net income	(11)		(3)		(25)		(14)
Other comprehensive income/(loss), net of tax	(17)		(23)		96		(98)
Ending balance	$	167	$	58	$	167	$	58
Derivative instruments
Beginning balance	$	180	$	(455)	$	(488)	$	(266)
Gains/(Losses) on derivative instruments	(96)		339		636		(52)
Less: Tax/(Tax benefit)	(15)		85		135		8
Net gains/(losses) on derivative instruments	(81)		254		501		(60)
(Gains)/Losses reclassified from AOCI to net income	16		111		118		271
Less: Tax/(Tax benefit)	6		22		22		57
Net (gains)/losses reclassified from AOCI to net income (d)	10		89		96		214
Other comprehensive income/(loss), net of tax	(71)		343		597		154
Ending balance	$	109	$	(112)	$	109	$	(112)
Pension and other postretirement benefits
Beginning balance	$	(2,654)	$	(2,645)	$	(2,685)	$	(2,658)
Amortization and recognition of prior service costs/(credits)	29		4		55		24
Less: Tax/(Tax benefit)	6		4		10		8
Net prior service costs/(credits) reclassified from AOCI to net income	23		—		45		16
Translation impact on non-U.S. plans	(8)		5		1		2
Other comprehensive income/(loss), net of tax	15		5		46		18
Ending balance	$	(2,639)	$	(2,640)	$	(2,639)	$	(2,640)
Total AOCI ending balance at September 30	$	(8,613)	$	(8,245)	$	(8,613)	$	(8,245)

__________

(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, on 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)In 2021, the first nine months excludes a gain of $2 million related to noncontrolling interests.

(d)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify existing net losses on cash flow hedges of $34 million (see Note 15).