Caterpillar Inc., Peoria, Ill., plans to contribute $190 million to its defined benefit plans in 2018, said the company's recent 10-K filing with the Securities and Exchange Commission.
The company expects to contribute $40 million to its U.S. pension funds and $150 million to its non-U.S. plans.
In 2017, Caterpillar contributed $1.35 billion to its U.S. plans and $107 million to its non-U.S. plans.
U.S. defined benefit assets totaled $13.42 billion and liabilities, $17.33 billion, for a funding ratio of 77.4% as of Dec. 31, up from 70% at the end of 2016.
Non-U.S. DB assets totaled $4.31 billion and liabilities, $4.61 billion, for a funding ratio of 93.5% as of Dec. 31, up from 87% the previous year.
As of Dec. 31, the U.S. pension plans had a target allocation of 70% fixed income and 30% equities, while the non-U.S. plans had an asset allocation of 54% fixed income, 38% equities, 5% real estate and 3% other.
The discount rate used to measure benefit obligations was 3.5% for the U.S. plans in 2017, down from 4% the previous year. The discount rate for the non-U.S. plans was 2.4%, down from 2.5% in 2016.
