Several more companies have announced 2011 contributions to their defined benefit plans in recent SEC filings.
Honeywell International Inc. , Morris Township, N.J., said it made a voluntary contribution of $1 billion to its U.S. pension plans in January to improve funded status of the plans. The company also indicated it is expecting to make contributions to its non-U.S. defined benefit plans of approximately $55 million this year.
According to its 2010 10-K, which was filed with the Securities and Exchange Commission on Feb. 11, the company also is considering contributing a portion of the proceeds from the sale of its consumer products group business to its U.S. pension plans in 2011. In January, the company entered into a definitive agreement to sell the business for approximately $950 million. The sale is expected to close in the third quarter.
The company's U.S. defined benefit pension assets increased 18.2% in 2010 to $12.2 billion as of Dec. 31. Its funded status was 81.3% at year-end 2010 vs. 75.7% a year earlier; the discount rate fell to 5.25% from 5.75% in the same period.
Assets for Honeywell's non-U.S. plans increased 12.9% to $3.9 billion as of Dec. 31. The funded status of those plans was 90.1% at year-end 2010 vs. 81.8% a year earlier; the discount rate fell to 5.4% from 5.71% in the same period.
As of Dec. 31, the asset allocation of Honeywell's U.S. plans was 56.8% equities; 26.7% fixed income; 10% private equity; 5.8% real estate; and 0.7% hedge funds. The allocation of the non-U.S. plans as of Dec 31 was 48.1% equities; 43.9% fixed income; 4.3% real estate; 2.3% private equity; and 1.4% hedge funds.
Merck & Co Inc. , Whitehouse Station, N.J., said it expects to contribute $800 million to its worldwide defined benefit pension plans in 2011. According to its 2010 10-K filed on Feb. 28, the company made contributions of $1.1 billion in 2010.
The company's defined benefit pension assets increased 17.3% in 2010 to $12.7 billion as of Dec. 31. The funded status of its defined benefit plans was 90.9% at year-end 2010 vs. 82.2% a year earlier. The discount rate fell to 5.5% from 5.8% in the same period.
As of Dec. 31, the asset allocation of Merck's plans was 66.2% equities; 24.7% fixed income; 7.8% cash and other; and 1.3% real estate.
The Coca-Cola Co., Atlanta, said it expects to contribute approximately $800 million to various pension plans worldwide in 2011, of which approximately $750 million was contributed so far this year. According to the company, approximately half of anticipated 2011 contributions will be allocated to its primary U.S. pension plans.
According to its 2010 10-K, the company's defined benefit pension assets worldwide increased 81.3% in 2010 to $5.5 billion as of Dec. 31, primarily because of the company's acquisition of Coca-Cola Enterprises Inc. on Oct. 2. The funded status of its defined benefit plans was 75.4% at year-end 2010 vs. 75.9% a year earlier. The discount rate fell to 5.5% from 5.75% in the same period.
As of Dec. 31, the asset allocation of Coca Cola's U.S. plans was 47.5% equities; 21.7% fixed income; 15.1% cash and other; 10.1% hedge funds and limited partnerships; and 5.6% real estate. Asset allocation for the non-U.S. plans as of Dec 31 was 50.7% pooled and commingled funds; 23.5% cash and other; 13.3% fixed income; 9.9% equities; 1.7% hedge funds and limited partnerships; and 0.9% real estate.
