Eaton Corp., Dublin, Ireland, plans to contribute $116 million to its global defined benefit plans in 2019, the company disclosed Wednesday in a 10-K filing.
The company said in the filing with the SEC that it plans to contribute $96 million to its non-U.S. DB plans and $20 million to its U.S. plans. In 2018, Eaton contributed $109 million to the non-U.S. plans and $17 million to the U.S. plans.
The discount rate for the U.S. DB plans was 4.28% in 2018, up from 3.64% in 2017, and the discount rate for the non-U.S. DB plans was 2.83% for 2018, up from 2.62% the previous year.
As of Dec. 31, U.S. DB plan assets totaled $3.07 billion, while projected benefit obligations totaled $3.63 billion, for a funding ratio of 84.4%, down from 90.5% the year before. As of that same date, non-U.S. DB plan assets totaled $1.56 billion, while projected benefit obligations totaled $2.28 billion, for a funding ratio of 68.3%, down from 72% a year earlier.
The U.S. defined benefit plans' target allocation is 37% fixed income; 25% each, domestic equities and international equities; 8% real estate and 5% other (including hedge funds, private equity and cash equivalents). The United Kingdom's target allocation is 62% equities and 38% cash, fixed income and real estate. According to the 10-K filing, of the company's global DB plan assets, 66% consists of U.S. plan assets and 27% consists of U.K. plan assets, with the rest in Canada.