Boeing Co., Chicago, is sticking with its proposal to contribute $1.5 billion to its defined benefit pension plans this year, according to a quarterly financial report released Wednesday.
In January, the company first reported its intention to make the $1.5 billion contribution on 2013, made in financial reports and a conference call.
The company made no contribution in the first three months of the year, an indication it plans to make the contributions over the rest of the year, according to Wednesday's report.
Boeing contributed $1.55 billion in 2012.
Boeing's pension plans' aggregate funding level declined to 74%, with $56.1 billion in pension assets and $75.8 billion in pension liabilities as of last Dec. 31, according to its 10-K report. A year earlier, the plans were 75% funded, with $51 billion in pension assets and $67.6 billion in pension liabilities.
The actual asset allocation of its pension funds at year-end was 49% fixed income, 29% global equity, 8% real estate and real assets combined, 5% each hedge funds and private equity, and 4% global strategies. Target allocation was 47% fixed income, 26% global equity, 11% real estate and real assets combined, 6% each hedge funds and private equity, and 4% global strategies. Hedge fund strategies include event driven, relative value, long/short and market neutral, according to the 10-K. Global strategies “seek to capitalize on inefficiencies identified across different asset classes or markets, primarily using long/short positions in derivatives and physical securities,” the 10-K states.
Boeing contributed $708 million to its 401(k) plans in 2012, up from $658 million the previous year.
