Computer Sciences to use sale proceeds for up to $400 million pension contribution
By Timothy Pollard | December 3, 2012 11:23 am
Computer Sciences Corp., Falls Church, Va., announced Monday it will sell its credit services division to Equifax for $1 billion in cash, and a portion of the sale proceeds — $300 million to $400 million — will be used for contributions to the company’s pension plans.
According to the company’s latest annual report dated May 29, CSC said it expected to make pension contributions of about $254 million during fiscal 2013. The company made contributions of $128 million to its U.S. plans and $121 million to its non-U.S. plans during fiscal 2012, which ended March 30.
Paul N. Saleh, CSC executive vice president and chief financial officer, said during an investor conference call Monday that the contribution would be in addition to the $254 million already announced in its annual report. He also noted that the contributions would be primarily for the company’s U.S. pension plans.
As of March 30, the company’s U.S. plans had assets of $2.4 billion, with a funded status of 73.7%. Its non-U.S. plans had assets of $2.3 billion, and a funded status of 84%.
Asset allocation for CSC’s U.S. plans, also as of March 30, was 58.8% equities, 38.6% fixed income and 2.6% cash; the allocation for its non-U.S. plans was 53.1% fixed income, 38.1% equities, 6.4% insurance contracts and 2.4% cash.