Ford to Record Pre-Tax Loss of $3 Billion in 2016
Ford Motor Co said on Friday it would record a pre-tax re-measurement loss of about $3 billion related to its pension plans and other post-retirement employee benefits plans. The charge was expected and follows a change in the company’s pension accounting.
The U.S. automaker said the re-measurement loss will not impact Ford’s adjusted pre-tax profit or adjusted earnings per share in 2016, and will be recognized as a special item.
Re-measurement is the re-evaluation of the value of an asset or liability on a company’s financial statements. On an after-tax basis, the re-measurement loss will reduce Ford’s full-year net income by about $2 billion in 2016.
Ford plans to announce its fourth-quarter earnings Jan. 26.