International Business Machines Corp., Armonk, N.Y., plans to contribute about $400 million to its non-U.S. pension plans in 2018, the company disclosed in a 10-K filing on Tuesday.
Most of the contributions will go to pension plans in Japan, Spain and the U.K., according to the filing. The company contributed $638 million to the non-U.S. plans in 2016.
IBM does not plan to make any contributions to the U.S. plans because it's not legally required. No contributions to those plans were made in 2017.
IBM's U.S. pension plan assets totaled $52.69 billion as of Dec. 31, while projected benefit obligations totaled $52.44 billion, for a funding ratio of 100.5% , up from 98.4% the previous year. The discount rate dropped to 3.4% at the end of 2017, down from 3.8% at the end of 2016.
Non-U.S. plan assets as of Dec. 31 totaled $40.8 billion, while projected benefit obligations totaled $49.11 billion, for a funding ratio of 83.1%, up from 80.1% the previous year. The discount rate dropped to 1.76% in 2017 from 1.8% in 2016.
The target allocation for IBM's U.S. plans as of Dec. 31 was 79% fixed income, 12% equities, 5% other investments and 4% real estate. The weighted-average target allocation for the non-U.S. plans is 62% fixed income, 23% equities, 12% other investments and 3% real estate.
