Xerox Corp., Norwalk, Conn., expects to contribute $350 million to its defined benefit plans in 2017 — $169 million to its U.S. plans and $181 million to its non-U.S. plans — according to the company's recently released 10-K filing with the Securities and Exchange Commission.
The 2017 expected pension plan contributions include $145 for the company's U.S. tax-qualified DB plans, composed of $15 million to meet the minimum funding requirements and $130 million of additional voluntary contributions.
In 2016, Xerox contributed $24 million to its U.S. plans and $154 million to its non-U.S. plans. It did not include any contributions for the company's domestic tax-qualified defined benefit plans because none were required to meet the minimum funding requirements.
The firm's U.S. plan had $2.77 billion in assets as of Dec. 31, with $4.16 billion in benefit obligations, giving it a funded status of 66.6%, down from 68% the year before. Meanwhile, its non-U.S. plans had $5.38 billion during the same period, with $6.16 billion in benefit obligations, giving it a funded status of 87.3%, up from 84.9% a year earlier.
The discount rate for Xerox's U.S. plans was 4% at the end of 2016 vs. 4.3% a year earlier. It's non-U.S. plans' discount rate was 2.5% in 2016 vs. 3.3% in 2015.
The target asset allocations for Xerox's U.S. DB plans in 2016 were 48% fixed income, 30% equities, 8% each private equity and other investments, and 6% real estate. The non-U.S. DB plans' target allocation during the same period was 45% fixed income, 28% equities, 13% other, 9% private equity and 5% real estate.