Ford Motor Company announced it will record a $600 million pretax charge in its fourth-quarter results related to remeasurement of employee pension plans and other postretirement benefits. The charge is split evenly between U.S. plans—driven by actuarial losses versus plan assumptions—and non-U.S. plans, where improved life-expectancy assumptions led to increased liabilities.

On an after-tax basis, the remeasurement loss is expected to reduce Ford’s net income by approximately $500 million, based on prevailing tax rates in jurisdictions with pension gains and losses. Ford emphasized that these special charges will affect GAAP net income but will be excluded from its adjusted results and have no impact on the company’s cash flow.

Despite the significant remeasurement, Ford’s pension and other postretirement benefit plans remain fully funded. The company reiterated that the $600 million charge will not alter its previously stated expectations for pension contributions in fiscal 2026, underlining confidence in its long-term retirement funding strategy.

This fourth-quarter pension charge is in addition to the roughly $19.5 billion in special items Ford disclosed last month, related to its global restructuring and a strategic pullback in electric vehicle investments. Most of those items are also slated for recognition in the fourth quarter, reinforcing management’s focus on streamlining operations and optimizing capital allocation.