PepsiCo Inc., Purchase, N.Y., expects to contribute about $160 million in pension contributions in this year, with up to about $15 million expected to be discretionary, an SEC filing shows.
According to its 2010 10-K filed on Feb. 18, the company contributed $1.25 billion and $215 million to its U.S. and international pension plans in 2010, respectively.
According to the 10-K, the company’s U.S. pension assets increased 63.7% in 2010 to $8.9 billion as of Dec. 31, while non-U.S. DB assets increased 21.5% to $1.9 billion. Increases in U.S. pension assets were largely due to the acquisitions of Pepsi Bottling Group and PepsiAmericas.
The funded status of the U.S. defined benefit plans was 90% at year-end 2010 vs. 82% a year earlier. The discount rate fell to 5.7% from 6.1% in the same period. Net funded status of the international plans decreased to 88.5% from 91.3%, while the discount rate fell to 5.5% from 5.9%.
As of Dec. 31, the U.S. plans’ asset allocation was 61.4% equities, 36.9% fixed income; and 1.7% cash and other investments. The asset allocation for the international plan at Dec. 31 was 51.3% equities, 38.4% fixed income, and 10.3% cash and other investments, according to the filing.