Company also plans to contribute $226 million to international plans
Pfizer Inc., New York, made a $500 million contribution to its U.S. pension plans earlier this month, and it expects to make a $226 million contribution to its international pension plans this year, the company reported in its 10-K filing Thursday.
The company also will make a $160 million contribution to non-qualified U.S. plans this year.
Last year, Pfizer contributed $1.1 billion to its qualified U.S. plans, $160 million to its international plans and $143 million to its non-qualified U.S. plans.
U.S. pension plans had $14.28 billion in assets as of Dec. 31 and liabilities of $16.7 billion, for a funding ratio of 85.5%. At year-end 2016, the plans had assets of $12.56 billion and liabilities of $15.55 billion, for a funding ratio of 80.8%.
International pension plans had $8.86 billion in assets as of year-end 2017 and liabilities of $10.61 billion, for a funding ratio of 83.5%, up from 79.3% the year before.
For U.S. pension plans, fixed-income securities accounted for 39.6% of total plan assets, while equity securities represented 37.5%. "Other" investments made up 18.3% of total plan assets, and cash and cash equivalents accounted for 4.6%. At the end of 2016, the asset allocation for U.S. plans was 40.1% equity, 34.9% fixed income, 19.7% other, and 5.3% cash and cash equivalents.
For international pension plans, fixed income accounted for 39.7% of total plan assets as of Dec. 31, equity represented 34.4%, other investments 21.9%, and cash and cash equivalents 4.3%. A year earlier, the asset allocation was 40.2% fixed income, 34.7% equity, 19.4% other, and 5.7% cash and cash equivalents.
The discount rate for U.S. plans was 3.8% last year vs. 4.3% in 2016. The discount rate for international plans was 2.3% last year vs. 2.4% in 2016.