Updated with correction
Chevron Corp. estimates it will contribute about $700 million to its global pension funds in 2014, according to its 10-K filed Friday.
The San Ramon, Calif.-based energy company contributed a total of $1.19 billion to its defined benefit plans in 2013 — $819 million to its U.S. plans and $375 million to its international plans.
The fair value of Chevron's plan assets was $15.75 billion as on Dec. 31, up 12% from the previous year, according to the 10-K.
For 2013, the company used a discount rate of 4.3% for its U.S. pension funds, up from 3.6% a year earlier.
For the 10 years ended Dec. 31, actual asset returns averaged 6.4% a year for the plan. The actual return for 2013 was more than 7.5% and was associated with a continuing recovery in the financial markets during the year.
As of Dec. 31, the asset allocation for Chevron's U.S. DB plans was 60.5% equities; 24.2% fixed income; 11.3% real estate; 3.4% cash and 0.6% other. The allocation of Chevron's international DB plans was 44.2% equities; 42.3% fixed income; 6.5% real estate; 3.8% cash; 2.6% mixed funds and 0.6% other.
