Avon Products Inc., New York, made a one-time pension contribution of $75 million to its U.S. pension plan in the first quarter, management said during an earnings call Tuesday.
The contribution improved the company’s overall pension plan funded status to just less than 85%, Charles Cramb, vice chairman of Avon’s developed market group and the company’s interim CFO, said in the earnings call.
According to the company’s 2010 10-K, Avon’s U.S. defined benefit plans had about $452 million in assets, with about $541 million in its non-U.S. plans as of Dec. 31. Funded status of the company’s U.S. and non-U.S. plans was 64.3% and 75.1%, respectively.
As of Dec. 31, the asset allocation of Avon’s U.S. plans was 51.1% equities; 48.8% fixed income; and 0.1% cash and other. Asset allocation for the company’s non-U.S. plans was 62.2% equities; 31.4% fixed income; 3.9% cash and other; and 2.5% real estate.
