It does. Emphasis on "well". Not, however, perfect, especially with more complex documents.

That's mostly an issue where you're working on "live" documents, collaborating with others actively. Once you've reached archival stage it's often safe to convert to something more stable. And I put the fault squarely with Microsoft: utter failure to take archival concerns into consideration.

My own preferred fixes are to convert to Markdown or LaTeX, if the structure supports it, and to other formats from there: PDF, HTMK, ePub.

And no, I haven't used MS Word for a decade and a half.