Ford Motor Co. and General Electric Co. plan to contribute more than $1 billion each to their pension plans in 2011 or 2012, leading a list of corporations that revealed expected payments to their plans in their annual 10-K reports filed with the SEC in February.
According to Dearborn, Mich.-based Ford's 2010 10-K, filed Feb. 28 with the Securities and Exchange Commission, the automaker expects to contribute $1.2 billion in cash and cash equivalents from its automotive division along with $400 million of direct benefit payments from the company during the year.
The company's U.S. pension assets increased 3.9% in 2010 to $39.9 billion as of Dec. 31. The funded status of its U.S. defined benefit plans was 85.7% at year-end 2010 vs. 86.2% a year earlier. The discount rate fell to 5.24% from 5.86% in the same period.
Assets of the company's non-U.S. plans increased 6% in 2010 to $18.6 billion as of Dec. 31. The funded status of its non-U.S. defined benefit plans was 79.6% at year-end 2010 vs. 75.3% a year earlier. The discount rate fell to 5.31% from 5.68% in the same period.
GE, Fairfield, Conn., expects to be required to contribute about $1.4 billion to its GE Pension Plan in 2012 — the first employer contribution to the plan since 1987, the company announced Feb. 25.
GE won't contribute to its plan this year, according to its 10-K.
The company's principal pension plans — which include the GE Pension Plan and the GE Supplementary Pension Plan — had assets of $44.8 billion as of Dec. 31, up 6.4% from a year earlier.
DTE Energy Co., Detroit, expects to contribute up to $1.2 billion to its pension plans over the next five years, according to its Feb. 18 filing. The company contributed $200 million to its pension plans in January, 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.
The U.S. plans of Caterpillar Inc., Peoria, Ill., will receive $790 million, while $210 million will go to its non-U.S. plans, according to its Feb. 22 filing.
Last year, Caterpillar contributed $919 million to its U.S. pension plans and $58 million to its non-U.S. plans.
Assets for Caterpillar's non-U.S. plans increased 3% to $2.9 billion as of Dec. 31. The funded status of non-U.S. defined benefit plans was 74.5% at year-end 2010 vs. 79% a year earlier. The discount rate fell to 4.6% from 4.8% in the same period.
ConocoPhillips, Houston, plans to contribute about $730 million to its domestic pension and post-retirement benefit plans, and $230 million to its international plans, according to its SEC filing.
The company's U.S. DB assets increased 23.7% in 2010, to $3.9 billion. The funded status of its U.S. plans was 70.2% at year-end 2010, vs. 62.4% a year earlier. The discount rate used to calculate its U.S. benefit obligation fell to 4.65% from 5.35% from a year earlier.
ConocoPhillips' international DB assets increased 13.2% last year to $2.6 billion. Funded status was 80.5% at year-end 2010 vs. 73.6% a year earlier. The discount rate used to calculate its international benefit obligation fell to 5.4% from 5.8% from a year earlier.
Chevron Corp. expects to contribute $950 million to its worldwide defined benefit pension plans this year, while Xerox Corp. plans to contribute $500 million to its DB plans, according to SEC filings.
San Ramon, Calif.-based Chevron will contribute $650 million to its U.S. pension plans and $300 million to its international plans, according to a 10-K filed Feb. 24.
In 2010, Chevron contributed $1.2 billion to its U.S. plans and $258 million to its international pension plans.
Chevron's U.S. pension assets increased 17.5% in 2010 to $8.6 billion while its international pension assets increased 8.3% to $3.5 billion.
International Business Machines Corp., 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 Feb. 22, shows. The company stated that it is not legally required to make contributions to its U.S. defined benefit plans. According to the 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.
Norwalk, Conn.-based Xerox Corp. plans to contribute $500 million to its DB plans in 2011, which follows the $237 million it contributed to its pension plans in 2010, according to its 10-K filing released Feb. 23.
Xerox's pension assets increased 5% in 2010 to $7.9 billion as of Dec. 31.
