Deere & Co., Moline, Ill., expects to contribute $439 million to its worldwide pension plans in its fiscal year ending Oct. 31, 2012, up from $79 million the previous fiscal year, according to its 10-K filing Monday with the SEC.
A breakdown of its expected U.S. pension contribution wasn't available.
Its U.S. pension fund's annual investment return averaged 7.6% for the past 10 years and 9.6% for the past 20 years, both periods ended Oct. 31, according to the filing.
Deere's assumed expected annual long-term return on pension fund assets was 8.1% for 2011, down from 8.3% for 2009, the filing said.
The worldwide plans were in aggregate 87.4% funded as of Oct. 31, the measurement date the company uses, according to the filing. Worldwide pension assets total $9.552 billion, while pension obligations totaled $10.925 billion.
Susan Karlix, manager of investor communications, said in a Nov. 23 conference call that the projected benefit obligation of Deere's U.S. core pension plans “was over 90% funded, despite a historically low discount rate,” according to a transcript.
Deere's pension plan asset allocation as of Oct. 31 was 23.4% U.S. equity, 22% fixed income, 15.5% international equity, 12.4% private equity and venture capital, 11.8% cash, 8.2% other investments and 6.7% hedge funds, according to the filing.
Its target allocation is 39% fixed income, 37% equities, 19% other investments and 5% real estate, the filing said.
Ms. Karlix and Ken Golden, director-global public relations, couldn't be reached for comment.