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Raytheon plans $3.2 billion in contributions over next 3 years


Raytheon Co., Waltham, Mass., expects to contribute $3.2 billion to its pension plans over the next three years, the company said Thursday in its fourth-quarter earnings presentation.

The company is projecting that its required cash contribution to its pension plans in 2013, 2014 and 2015 to be $794 million, $1.14 billion and $1.28 billion, respectively.

In 2012, Raytheon made $740 million in required and $500 million in discretionary cash contributions to its defined benefit plans.

The company noted in the presentation that the projections are based on an average discount rate of 4.15% for all years and an actual return on assets of 12.1% through Dec. 31, 2012.

According to Pensions & Investments data, Raytheon's U.S. defined benefit assets totaled $16.4 billion as of Sept. 30. Asset allocation was 31% global fixed income, 29% domestic equity, 17% international equity, 13% alternatives, 6% cash, and 2% each in real estate and private equity.