Honeywell International Inc., Morris Plains, N.J., plans to contribute $142 million to its non-U.S. defined benefit plans, the company disclosed in its 10-K filing with the Securities and Exchange Commission on Wednesday.
The company said in the filing the contribution will satisfy "regulatory funding requirements." Honeywell contributed $161 million to the non-U.S. DB plans in 2017. For the U.S. defined benefit plans, Honeywell said it is not required nor plans to make any contributions in 2018. Honeywell contributed $139 million to the U.S. plans in 2017.
For the U.S. DB plans, the discount rate in 2017 was 3.68%, down from 4.2% in 2016, and 2.36% for the non-U.S. plans, down from 2.51%.
As of Dec. 31, U.S defined benefit plan assets totaled $18.99 billion, while projected benefit obligations totaled $18.15 billion, for a funding ratio of 104.6%. Non-U.S. plan assets as of that same date totaled $7.15 billion, while projected benefit obligations totaled $7.02 billion, for a funding ratio of 101.9%. The U.S. and non-U.S. plans' funding ratios as of Dec. 31, 2016, were 96.6% and 94.4%, respectively.
As of Dec. 31, the actual allocation of the U.S. DB plans was 37.7% fixed income, 33.7% domestic equities, 13.9% international equities, 8.7% private investments, 3.6% real estate, 1.4% real estate investment trusts, 1% other and 0.1% hedge funds. As of that same date, the non-U.S. DB plans' actual allocation was 48.8% fixed income, 39.2% international equities, 8% domestic equities, 2.9% real estate and 1.1% private investments.