Caterpillar Inc., Peoria, Ill., contributed $953 million to its defined benefit pension plans, including $650 million in company stock, in the first six months of the year, according to an SEC filing.
The contributions raised Caterpillar's U.S. defined benefit plans' holding of company stock to 18.2 million shares, according to the Aug. 10 filing with the SEC.
Based on today's closing price, the shares are now valued at $871 million, or 13% of the Dec. 31 $6.745 billion value of Caterpillar's U.S. defined benefit plans.
A more recent pension fund value wasn't available, said Jim Dugan, Caterpillar spokesman.
The defined benefit plans had only $11 million in Caterpillar stock at the beginning of the year, according to the company's 10-K filing in February. The defined benefit plans own 2.9% of Caterpillar's outstanding stock after the latest contribution.
The company expects to contribute $50 million in cash to its DB plans by the end of the year, the Aug. 10 filing said.
In addition, the company in June began funding its U.S. 401(k) plan match, up to 6% of compensation, in company stock instead of cash, the recent filing said. The match will amount to about $10 million in Caterpillar shares a month, said Mr. Dugan, who said participants can change their holdings at any time.
The company's 401(k) plan had 42.4 million shares of Caterpillar stock as of July 31, according to the Aug. 10 filing. That stock, based on today's closing price would amount to $2 billion or 40% of the Sept. 30 $5.002 billion value of the 401(k) plan. A more recent value wasn't available.
The company contributed $104 million in cash to its U.S. 401(k) plan last year, according to its 10-K.
State Street Bank & Trust is the investment manager for the Caterpillar stock in the defined benefit and 401(k) plans, the Aug. 10 filing said.
