Ford To Report Special Items During Q4 Results — Including $8.2B Gain From Rivian Investment

Ford Motor Company F announced Tuesday that it intends to report several large special items during the company's upcoming financial results.

The most obvious is Ford's $8.2 billion gain from its equity investment in Rivian Automotive Inc RIVN.

The Detroit-based automaker said it has plans to reclassify about $900 million of its first-quarter 2021 non-cash gain on the Rivian investment as a special item. As a result of the reclassification, the gain from the first quarter will not be included in Ford’s full-year adjusted EBIT or adjusted earnings. 

Ford also said it expects the special items to include an annual revaluation of Ford’s global pension and other post-retirement employee benefits, resulting in a non-cash, pre-tax accounting remeasurement gain of about $3.5 billion for the fourth quarter and about $3.9 billion for the year. The company noted that the remeasurement gain can be largely attributed to higher discount rates and asset returns.

Ford anticipates a third special item consisting of $1.7 billion in costs associated with repurchasing and redeeming more than $7.6 billion in high-cost debt in the fourth quarter.

Lastly, the company expects a $3.6 billion tax special item, primarily resulting from changes in Ford’s global tax structure and its effect on deferred tax assets.

The special items will be included in Ford’s GAAP net income and earnings per share, but will be excluded from its non-GAAP adjusted earnings before interest and taxes.

See Also: Why Ford And GM Shares Are Falling Today

Ford is set to announce its fourth-quarter and full-year 2021 financial results on Feb. 3.

F Price Action: Ford has traded as low as $9.82 and as high as $25.87 over a 52-week period.

The stock closed down 3.22% at $24.38 on Tuesday.

Photo: Courtesy of Ford