PepsiCo Inc., Purchase, N.Y., plans to contribute $355 million to its global pension plans in 2019, the company disclosed in a 10-K filing with the SEC.
The company said in the Feb. 15 filing it has already made $150 million in discretionary contributions to one of its U.S. plans in January and plans to make an additional $205 million in non-discretionary contributions during the rest of the year to its global plans. PepsiCo did not break the latter number out by region. In 2018, the food and beverage maker contributed $1.5 billion to its U.S. plans and $120 million to its non-U.S. plans.
As of Dec. 31, U.S. pension plan assets totaled $12.26 billion, while projected benefit obligations totaled $13.81 billion, for a funding ratio of 88.8%, up from 85.1% the year before. As of that same date, non-U.S. pension plan assets totaled $3.09 billion and projected benefit obligations totaled $3.1 billion, for a funding ratio of 99.7%, up from 99.1% the year before. The discount rate for U.S. plans in 2018 was 4.4%, up from 3.7% the previous year, and the non-U.S. plans' discount rate was 3.4%, up from 3% in 2017.
As of Dec. 31, the actual allocation of the U.S. pension plans was: 44.7% equities, 33% corporate fixed income, 13.3% government fixed income, 4.9% real estate, 1.7% each cash and cash equivalents and mortgage-backed securities and 0.7% other.
As of Dec. 31, the actual allocation of the non-U.S. pension plans was: 53.4% equities, 41% fixed income, 3.3% real estate and 2.3% other.
