Hewlett-Packard Co., Palo Alto, Calif., said it expects to contribute $597 million to its worldwide defined benefit pension plans in 2012, according to its latest 10-K.
HP contributed a total of $279 million to its U.S. pension plans and $458 million to its non-U.S. pension plans in 2011.
The company's U.S. DB pension assets increased 13.1% in 2011 to $10.7 billion as of Oct. 31, the end of the company's fiscal year. The funded status of its U.S. DB plans was 89.3% as of Oct. 31 vs. 86.5% a year earlier. The discount rate fell to 4.8% from 5.6% in the same period.
Assets for HP's non-U.S. plans increased 3.3% to $13.2 billion as of Oct. 31. The funded status of non-U.S. DB plans was 80.7% as of Oct. 31 vs. 79.3% a year earlier. The discount rate rose to 4.5% from 4.4% a year earlier.
The asset allocation of HP's U.S. plans was 57.8% fixed income; 17.1% equities; 12.7% private equity; 7.9% collective trusts; and 4.5% cash and other. The asset allocation for the non-U.S. plan as of Oct. 31 was 43.9% equities; 32.1% fixed income; 8.6% cash and other; 6% alternative hybrids; 5.2% real estate; and 4.2% hedge funds.
