Mondelez International Inc., Deerfield, Ill., anticipates contributing $468 million total to its worldwide pension plans in 2017, the company announced in its 10-K filed Feb. 24.
Of the $468 million, $13 million will go to the company's U.S. plans and $455 million to its non-U.S. plans.
As of Dec. 31, Mondelez's U.S. defined benefit assets totaled $1.62 billion and benefit obligations, $1.61 billion for a funded status of 100.6%, up from 79.6% in 2015.
As of the same date, non-U.S. DB assets totaled $7.93 billion and benefit obligations, $9.81 billion for a funded status of 80.8%, similar to 2015.
Regarding the improvement in the U.S. plans' funded status, Mondelez noted that it combined its coffee business with D.E Master Blenders 1753 in July 2015, to form Jacobs Douwe Egberts, and that some pension obligations and assets were transferred to JDE in 2015.
At the end of 2016, the asset allocation for the U.S. plans was 63% fixed-income securities, 33% equity securities and 4% real estate. The asset allocation for the non-U.S. plans was 57% fixed-income securities, 29% equity securities, 6% hedge funds, 5% real estate, 2% private equity and 1% cash.
The discount rates used to calculate benefit obligations for the U.S. and non-U.S. plans were 4.19% and 2.31%, respectively, in 2016, down from 4.5% and 3.11% at the end of 2015.
In 2016, Mondelez contributed $378 million to its U.S. pension plans and $403 million to its non-U.S. plans.