Motorola Solutions Inc., Chicago, expects to make a $500 million contribution to its U.S. defined benefit plans in 2018, according to its 10-K filed with the Securities and Exchange Commission Friday.
The expected contribution is "taking advantage of the recently enacted tax reform," the 10-K said.
The company made $3 million in contributions to its U.S. DB plans during 2017, while contributing $7 million to its non-U.S. DB plans.
Motorola's U.S. DB plans had $3.61 billion in assets as of Dec. 31 and $5.24 billion in benefit obligations for a funding ratio of 69%, unchanged from the previous year.
Meanwhile, its non-U.S. DB plans had $1.6 billion in assets with $1.84 billion in benefit obligations for a funding ratio of 87%, vs. 87.4% at the end of 2016.
The discount rate used to determine benefit obligations for Motorola's U.S. DB plans in 2017 was 3.79%, down from 4.42% in 2016. Meanwhile, the discount rate for the company's non-U.S. DB plans was 2.34%, down from 2.54% in 2016.
Motorola's target asset allocation for all its DB plans as of Dec. 31 was 49% fixed income, 31% equities, and 20% cash and other investments.