| 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 | | 2025 | | 2026 | | 2025 | | 2026 | | Foreign currency translation | | | | | | | | | Beginning balance | $ | (5,105) | | | $ | (5,013) | | | $ | (6,899) | | | $ | (4,878) | | | Gains/(Losses) on foreign currency translation | 36 | | | (60) | | | 1,762 | | | (247) | | | Less: Tax/(Tax benefit) (a) | 8 | | | 133 | | | (64) | | | 88 | | | Net gains/(losses) on foreign currency translation | 28 | | | (193) | | | 1,826 | | | (335) | | | (Gains)/Losses reclassified from AOCI to net income (b) | — | | | — | | | (4) | | | 7 | | | Other comprehensive income/(loss), net of tax (c) | 28 | | | (193) | | | 1,822 | | | (328) | | | Ending balance | $ | (5,077) | | | $ | (5,206) | | | $ | (5,077) | | | $ | (5,206) | | | | | | | | | | | Marketable securities | | | | | | | | | Beginning balance | $ | 53 | | | $ | (27) | | | $ | (50) | | | $ | 81 | | | Gains/(Losses) on available for sale securities | 34 | | | (143) | | | 173 | | | (273) | | | Less: Tax/(Tax benefit) | 8 | | | (34) | | | 40 | | | (65) | | | Net gains/(losses) on available for sale securities | 26 | | | (109) | | | 133 | | | (208) | | | (Gains)/Losses reclassified from AOCI to net income | (3) | | | (1) | | | (8) | | | (14) | | | Less: Tax/(Tax benefit) | (1) | | | 1 | | | (2) | | | (3) | | | Net (gains)/losses reclassified from AOCI to net income (b) | (2) | | | (2) | | | (6) | | | (11) | | | Other comprehensive income/(loss), net of tax | 24 | | | (111) | | | 127 | | | (219) | | | Ending balance | $ | 77 | | | $ | (138) | | | $ | 77 | | | $ | (138) | | | | | | | | | | | Derivative instruments | | | | | | | | | Beginning balance | $ | (262) | | | $ | 94 | | | $ | 277 | | | $ | (38) | | | Gains/(Losses) on derivative instruments | 361 | | | (39) | | | (236) | | | 219 | | | Less: Tax/(Tax benefit) | 88 | | | (10) | | | (51) | | | 52 | | | Net gains/(losses) on derivative instruments | 273 | | | (29) | | | (185) | | | 167 | | | (Gains)/Losses reclassified from AOCI to net income | 23 | | | (42) | | | (82) | | | (126) | | | Less: Tax/(Tax benefit) | 5 | | | (10) | | | (19) | | | (30) | | | Net (gains)/losses reclassified from AOCI to net income (d) | 18 | | | (32) | | | (63) | | | (96) | | | Other comprehensive income/(loss), net of tax | 291 | | | (61) | | | (248) | | | 71 | | | Ending balance | $ | 29 | | | $ | 33 | | | $ | 29 | | | $ | 33 | | | | | | | | | | | Pension and other postretirement benefits | | | | | | | | | Beginning balance | $ | (2,928) | | | $ | (2,826) | | | $ | (2,967) | | | $ | (2,875) | | Amortization and recognition of prior service costs/(credits) | 32 | | | 30 | | | 92 | | | 91 | | | Less: Tax/(Tax benefit) | 7 | | | 7 | | | 22 | | | 23 | | Net prior service costs/(credits) reclassified from AOCI to net income | 25 | | | 23 | | | 70 | | | 68 | | | Translation effect on non-U.S. plans | 1 | | | (1) | | | (5) | | | 3 | | | Other comprehensive income/(loss), net of tax | 26 | | | 22 | | | 65 | | | 71 | | | Ending balance | $ | (2,902) | | | $ | (2,804) | | | $ | (2,902) | | | $ | (2,804) | | | | | | | | | | | Total AOCI ending balance at September 30 | $ | (7,873) | | | $ | (8,115) | | | $ | (7,873) | | | $ | (8,115) | |
__________ (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, in 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)Excludes a $1 million loss related to noncontrolling interests in 2025. (d)Reclassified to Cost of sales. During the next twelve months, we expect to reclassify an existing net gain on cash flow hedges of $117 million (see Note 13).
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