Goodyear Tire & Rubber Co., Akron, Ohio, expects to contribute about $200 million to $225 million to its worldwide defined benefit pension plans in 2011, and an additional $400 million to $450 million in 2012.
According to the company's 2010 10-K, its U.S. pension assets increased 8.9% in 2010 to $3.7 billion as of Dec. 31. The funded status of its U.S. defined benefit plans was 65.8% at year-end 2010 vs. 63.9% a year earlier. The discount rate fell to 5.2% from 5.75% in the same period.
Assets for Goodyear's non-U.S. plans increased 7.4% to $2.1 billion as of Dec. 31. The funded status of non-U.S. defined benefit plans was 76.9% at year-end 2010 vs. 71.1% a year earlier. The discount rate fell to 5.54% from 5.68% in the same period.
As of Dec. 31, the asset allocation of Goodyear's U.S. plans was 65.4% equities; 31.1% fixed income; 2.9% cash and other; and 0.6% real estate. Asset allocation for the non-U.S. plan as of Dec 31 was 52.1% fixed income; 31.9% equities; 5.9% alternative commingled funds; 5.1% real estate; and 5% cash and other.