Ford records $600 million pension charge in Q4

DETROIT — ford motor It said it would report a pre-tax charge of $600 million in its fourth-quarter results due to adjustments in its employee pension plans and other postretirement benefits.

The Detroit automaker said the special fees, which will impact its net income but not its adjusted results or cash, are split between domestic plans and those outside the United States.

“The remeasurement loss for U.S. plans was largely driven by actuarial losses compared to plan assumptions,” Ford said in a public statement after markets closed on Thursday. “The remeasurement loss for non-U.S. plans was largely driven by changes in key plan measurement assumptions, such as improved life expectancy.”

On an after-tax basis, Ford said the remeasurement loss is expected to reduce its net income by approximately $500 million based on the tax impact in jurisdictions where the remeasurement gains and losses exist.

Ford said its retirement plans remain fully funded and that the fees will not change its expectations for pension contributions in 2026.

The new special fees are in addition to about $19.5 billion in special items that the company disclosed last month related to restructuring its business priorities and declining its investments in fully electric vehicles, most of which Ford said will occur during the fourth quarter.

Automakers typically exclude “special items” or one-time charges from their adjusted financial results to provide investors with a clearer picture of their underlying, ongoing business operations.

Ford is scheduled to announce fourth-quarter results after markets close on February 10.