International Business Machines Corp. and Eli Lilly Inc. led the list of companies slating contributions to their defined benefit plans, according to SEC 10-K filings.
IBM, Armonk, N.Y., said it expects to contribute about $900 million to its non-U.S. defined benefit pension plans in 2011, the company's 2010 10-K, filed Tuesday, shows. The company stated that it is not legally required to make contributions to its U.S. defined benefit plans. According to filing, the company contributed $865 million to its non-U.S. pension plans in 2010.
The company's U.S. pension assets increased 6.3% in 2010 to $50.3 billion as of Dec. 31. The funded status of its U.S. defined benefit plans was 98% at year-end 2010 vs. 97.8% a year earlier. The discount rate fell to 5% from 5.6% in the same period.
Assets for IBM's non-U.S. plans increased 4.1% to $35.7 billion as of Dec. 31. The funded status of non-U.S. defined benefit plans was 83.9% at year-end 2010 vs. 83% a year earlier. The discount rate fell to 4.33% from 4.84% in the same period.
As of Dec. 31, the asset allocation of IBM's U.S. plans was 43.4% fixed income; 36.4% equities; 8.5% private equity; 5.2% private real estate; 3.4% cash and other; and 3.1% hedge funds. The non-U.S. plans had 48.8% in equities; 47.7% fixed income; 1.5% private real estate; 1.5% cash and other; and 0.5% private equity.
Indianapolis-based Eli Lilly expects to contribute about $80 million to its defined benefit pension plans to satisfy minimum funding requirements for the year, a 10-K filed Tuesday said. The company contributed $563.5 million to its pension plans in 2010, according to the filing.
The company's pension assets increased 16.2% in 2010 to $6.9 billion as of Dec. 31. The funded status was 86.1% at year-end 2010 vs. 79.5% a year earlier, while the discount rate fell to 5.6% from 5.9% in the same period.
As of Dec. 31, the plans' asset allocation was 28.9% hedge funds, 26.8% international equities; 16.2% fixed income; 13.5% private equity; 8.4% U.S. equities; and 6.2% other.
DTE Energy Co., Detroit, expects to contribution up to $1.2 billion to its pension plans over the next five years, according to its 10-K filed Friday. The company contributed $200 million to its pension plans last month, while 2010 contributions totaled $200 million, including a contribution of DTE Energy stock worth $100 million.
DTE's pension assets jumped 14.3% in 2010 to $2.9 billion. The funded status of its defined benefit plans was 77% at year-end 2010 vs. 74.2% a year earlier, while the discount rate fell to 5.5% from 5.9% in the same period.
As of Dec. 31, DTE's pension plans had 48.7% in equities, 24.7% fixed income; 19.4% hedge funds; 6% private equity; and 1.2% short-term investments.
Intel Corp., Santa Clara, Calif., stated in its 2010 10-K filed Friday that it expects to contribute $55 million to its non-U.S. pension plans in 2011. According to the filing, the non-U.S. defined benefit pension plan had $642 million in assets as of Dec 31.