NCR adds $752 million to pension plans in 2012, continues derisking strategy
By Timothy Pollard | February 8, 2013 11:49 am
NCR Corp., Duluth, Ga., contributed $100 million to its U.S. qualified pension plan in the fourth quarter of 2012, bringing total contributions to its worldwide plans to $752 million for the year.
The fourth-quarter amount followed a $500 million discretionary contribution to its U.S. plan during the third quarter.
NCR's net funded status of its global pension plans improved by $880 million during 2012 and stood at a net shortfall of $440 million as of Dec. 31, according to its fourth-quarter earnings release.
Pensions & Investments estimates NCR's total U.S. defined benefit plan assets totaled $4.8 billion as of Dec. 31.
The company has completed the first two phases of a three-phase process to reduce risk in its pension plan through a combination of lump-sum payment offers, pension contributions through debt offerings and shifting nearly 100% of its U.S. plan assets to fixed income.
Robert P. Fishman, senior vice president, chief financial officer and chief accounting officer, said during the company's earnings call that 60% to 70% of NCR's international pension plan assets were invested in fixed income as of Dec. 31.
In 2013, NCR will announce specifics on the third phase of its strategy, which will focus on implementing mark-to-market accounting, additional lump-sum offers and additional engagement with international pension plan trustees to further reduce risk in those plans.
Pensions & Investments estimates NCR's total international defined benefit plan assets totaled $2.3 billion as of Dec. 31.