FedEx Corp., Memphis, expects to contribute $660 million to its U.S. pension funds during its 2016 fiscal year that started June 1. The company contributed the exact same amount in each of its two previous fiscal years.
Worldwide defined benefit assets totaled $23.5 billion as of May 31, up 7.3% from a year earlier. The funding ratio of its DB plans was 85.4%, down from 89.1% a year earlier. The decrease was due to a lower discount rate of 4.38% and the implementation of new U.S. mortality tables.
U.S. DB assets totaled $23 billion, also up 7.3% from 2014. The company said its rate of return on U.S. pension assets was 13.3% for its 2015 fiscal year, exceeding its expected return of 7.75%.
The asset allocation for its DB plans as of May 31 was 49.2% fixed income, 22.9% U.S. equity, 13.3% international equity, 11.2% global equity, 1% private equity, and 2.4% cash and other.