Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Defined Benefit Plan, Assumptions [Table Text Block]

The assumptions used to determine benefit obligation and net periodic benefit cost/(income) were as follows:


	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Worldwide OPEB
	2020		2021		2020		2021		2020		2021
Weighted Average Assumptions at December 31
Discount rate	2.56	%	2.91	%	1.23	%	1.75	%	2.62	%	2.97	%
Average rate of increase in compensation	3.50		3.50		3.34		3.19		3.44		3.46
Weighted Average Assumptions Used to Determine Net Benefit Cost for the Year Ended December 31
Discount rate - Service cost	3.55	%	3.02	%	1.75	%	1.44	%	3.57	%	3.14	%
Effective interest rate on benefit obligation	2.88		2.00		1.46		1.06		2.85		1.96
Expected long-term rate of return on assets	6.50		6.00		3.67		3.42		—		—
Average rate of increase in compensation	3.50		3.50		3.37		3.34		3.44		3.44

Schedule of defined benefit plans expense [Table Text Block]

The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the years ended December 31 was as follows (in millions):


	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Worldwide OPEB
	2019		2020		2021		2019		2020		2021		2019		2020		2021
Service cost	$	474	$	520	$	526	$	506	$	529	$	557	$	43	$	47	$	49
Interest cost	1,570		1,291		928		691		514		420		211		169		127
Expected return on assets	(2,657)		(2,795)		(2,728)		(1,124)		(1,067)		(1,130)		—		—		—
Amortization of prior service costs/(credits)	87		4		2		33		32		24		(70)		(16)		(12)
Net remeasurement (gain)/loss	(135)		377		(254)		2,084		499		(3,241)		551		556		(376)
Separation programs/other	22		35		19		398		226		156		—		—		—
Settlements and curtailments	(67)		5		70		8		103		(2)		—		(2)		—
Net periodic benefit cost/(income)	$	(706)	$	(563)	$	(1,437)	$	2,596	$	836	$	(3,216)	$	735	$	754	$	(212)

Schedule Of Defined Benefit Plan Obligations [Table Text Block]

The year-end status of these plans was as follows (in millions):


	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Worldwide OPEB
	2020		2021		2020		2021		2020		2021
Change in Benefit Obligation
Benefit obligation at January 1	$	45,672	$	49,020	$	35,373	$	39,835	$	6,072	$	6,575
Service cost	520		526		529		557		47		49
Interest cost	1,291		928		514		420		169		127
Amendments	—		—		—		4		21		—
Separation programs/other	(10)		(25)		219		185		—		—
Curtailments	—		—		—		(4)		—		—
Settlements	(25)		(1,297)		(189)		—		—		—
Plan participant contributions	23		20		14		13		21		21
Benefits paid	(3,055)		(2,522)		(1,394)		(1,565)		(339)		(356)
Foreign exchange translation	—		—		1,131		(1,432)		28		—
Actuarial (gain)/loss	4,604		(1,762)		3,638		(3,581)		556		(376)
Benefit obligation at December 31	49,020		44,888		39,835		34,432		6,575		6,040
Change in Plan Assets
Fair value of plan assets at January 1	44,253		48,355		29,958		33,820		—		—
Actual return on plan assets	7,018		1,150		4,149		788		—		—
Company contributions	186		247		744		912		—		—
Plan participant contributions	23		20		14		13		—		—
Benefits paid	(3,055)		(2,522)		(1,394)		(1,565)		—		—
Settlements	(25)		(1,297)		(189)		—		—		—
Foreign exchange translation	—		—		547		(855)		—		—
Other	(45)		(44)		(9)		(28)		—		—
Fair value of plan assets at December 31	48,355		45,909		33,820		33,085		—		—
Funded status at December 31	$	(665)	$	1,021	$	(6,015)	$	(1,347)	$	(6,575)	$	(6,040)

Amounts Recognized on the Balance Sheets
Prepaid assets	$	1,578	$	3,130	$	2,673	$	5,404	$	—	$	—
Other liabilities	(2,243)		(2,109)		(8,688)		(6,751)		(6,575)		(6,040)
Total	$	(665)	$	1,021	$	(6,015)	$	(1,347)	$	(6,575)	$	(6,040)
Amounts Recognized in Accumulated Other Comprehensive Loss (pre-tax)
Unamortized prior service costs/(credits)	$	4	$	2	$	206	$	170	$	(11)	$	22

Pension Plans in which Accumulated Benefit Obligation Exceeds Plan Assets at December 31
Accumulated benefit obligation	$	2,295	$	2,192	$	14,595	$	12,586
Fair value of plan assets	145		140		7,203		6,835

Accumulated Benefit Obligation at December 31	$	47,848	$	43,879	$	36,272	$	31,850

Pension Plans in which Projected Benefit Obligation Exceeds Plan Assets at December 31
Projected benefit obligation	$	2,389	$	2,249	$	15,951	$	13,651
Fair value of plan assets	145		140		7,264		6,900

Projected Benefit Obligation at December 31	$	49,020	$	44,888	$	39,835	$	34,432

Schedule of Expected Benefit Payments [Table Text Block]

The expected future benefit payments at December 31, 2021 were as follows (in millions):


	Benefit Payments
	Pension
	U.S. Plans		Non-U.S. Plans		Worldwide OPEB
2022	$	2,700	$	1,490	$	335
2023	2,670		1,350		330
2024	2,680		1,360		330
2025	2,680		1,380		330
2026	2,650		1,380		330
2027-2031	12,805		7,035		1,620

Schedule of Allocation of Plan Assets [Table Text Block]

The fair value of our defined benefit pension plan assets (including dividends and interest receivables of $317 million and $102 million for U.S. and non-U.S. plans, respectively) by asset category at December 31 was as follows (in millions):


	2020
	U.S. Plans										Non-U.S. Plans
	Level 1		Level 2		Level 3		Assets measured at NAV (a)		Total		Level 1		Level 2		Level 3		Assets measured at NAV (a)		Total
Asset Category
Equity
U.S. companies	$	2,161	$	20	$	—	$	—	$	2,181	$	1,989	$	48	$	—	$	—	$	2,037
International companies	1,346		18		2		—		1,366		1,428		181		4		—		1,613
Total equity	3,507		38		2		—		3,547		3,417		229		4		—		3,650
Fixed Income
U.S. government and agencies	9,243		2,177		—		—		11,420		—		75		—		—		75
Non-U.S. government	—		1,203		14		—		1,217		—		20,398		—		—		20,398
Corporate bonds	—		26,983		—		—		26,983		—		3,391		53		—		3,444
Mortgage/other asset-backed	—		512		—		—		512		—		515		16		—		531
Commingled funds	—		189		—		—		189		—		111		—		—		111
Derivative financial instruments, net	1		(95)		—		—		(94)		2		80		(118)		—		(36)
Total fixed income	9,244		30,969		14		—		40,227		2		24,570		(49)		—		24,523
Alternatives
Hedge funds	—		—		—		3,258		3,258		—		—		—		1,259		1,259
Private equity	—		—		—		1,859		1,859		—		—		—		729		729
Real estate	—		—		—		1,220		1,220		—		—		—		323		323
Total alternatives	—		—		—		6,337		6,337		—		—		—		2,311		2,311
Cash, cash equivalents, and repurchase agreements (b)	(605)		—		—		—		(605)		(2,257)		—		—		—		(2,257)
Other (c)	(1,151)		—		—		—		(1,151)		(458)		—		6,051		—		5,593
Total assets at fair value	$	10,995	$	31,007	$	16	$	6,337	$	48,355	$	704	$	24,799	$	6,006	$	2,311	$	33,820

__________

(a)Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(b)Primarily short-term investment funds to provide liquidity to plan investment managers, cash held to pay benefits, and repurchase agreements valued at $(2.4) billion in U.S. plans and $(2.9) billion in non-U.S. plans.

(c)For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, primarily Ford-Werke, plan assets (insurance contracts valued at $5 billion at year-end 2020) and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).

NOTE 17. RETIREMENT BENEFITS (Continued)

The fair value of our defined benefit pension plan assets (including dividends and interest receivables of $310 million and $96 million for U.S. and non-U.S. plans, respectively) by asset category at December 31 was as follows (in millions):


	2021
	U.S. Plans										Non-U.S. Plans
	Level 1		Level 2		Level 3		Assets measured at NAV (a)		Total		Level 1		Level 2		Level 3		Assets measured at NAV (a)		Total
Asset Category
Equity
U.S. companies	$	1,396	$	20	$	—	$	—	$	1,416	$	1,862	$	48	$	—	$	—	$	1,910
International companies	740		8		8		—		756		1,254		59		—		—		1,313
Total equity	2,136		28		8		—		2,172		3,116		107		—		—		3,223
Fixed Income
U.S. government and agencies	9,660		1,687		—		—		11,347		47		13		—		—		60
Non-U.S. government	—		1,230		12		—		1,242		—		20,338		123		—		20,461
Corporate bonds	—		25,842		—		—		25,842		—		2,901		70		—		2,971
Mortgage/other asset-backed	—		464		—		—		464		—		338		15		—		353
Commingled funds	—		164		—		—		164		—		185		—		—		185
Derivative financial instruments, net	1		(19)		—		—		(18)		(1)		23		28		—		50
Total fixed income	9,661		29,368		12		—		39,041		46		23,798		236		—		24,080
Alternatives
Hedge funds	—		—		—		3,390		3,390		—		—		—		1,221		1,221
Private equity	1		—		—		1,976		1,977		—		—		—		756		756
Real estate	—		—		—		1,323		1,323		—		—		—		386		386
Total alternatives	1		—		—		6,689		6,690		—		—		—		2,363		2,363
Cash, cash equivalents, and repurchase agreements (b)	(1,220)		—		—		—		(1,220)		(1,899)		—		—		—		(1,899)
Other (c)	(774)		—		—		—		(774)		(466)		—		5,784		—		5,318
Total assets at fair value	$	9,804	$	29,396	$	20	$	6,689	$	45,909	$	797	$	23,905	$	6,020	$	2,363	$	33,085

__________

(a)Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(b)Primarily short-term investment funds to provide liquidity to plan investment managers, cash held to pay benefits, and repurchase agreements valued at $2.9 billion in U.S. plans and $2.6 billion in non-U.S. plans.

(c)For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, $4.7 billion of insurance contracts, primarily Ford-Werke, and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

The following table summarizes the changes in Level 3 defined benefit pension plan assets measured at fair value on a recurring basis for the years ended December 31 (in millions):


	2020
			Return on plan assets
	Fair Value at January 1		Attributable to Assets Held at December 31		Attributable to Assets Sold		Net Purchases/ (Settlements)		Transfers Into/ (Out of) Level 3		Fair Value at December 31
U.S. Plans	$	17	$	(2)	$	1	$	—	$	—	$	16
Non-U.S. Plans (a)	5,572		473		1		1		(41)		6,006

	2021
			Return on plan assets
	Fair Value at January 1		Attributable to Assets Held at December 31		Attributable to Assets Sold		Net Purchases/ (Settlements)		Transfers Into/ (Out of) Level 3		Fair Value at December 31
U.S. Plans	$	16	$	(2)	$	—	$	5	$	1	$	20
Non-U.S. Plans (a)	6,006		(943)		153		687		117		6,020

__________

(a)Non-U.S. plans, insurance contracts, primarily Ford-Werke plan, valued at $5 billion and $4.7 billion at year-end 2020 and 2021, respectively.