Ford Motor Co., Dearborn, Mich., plans to contribute $600 million to $800 million to its non-U.S. defined benefit plans in 2020, the company disclosed Wednesday in a 10-K filing with the Securities and Exchange Commission.
Ford said it does not expect to contribute to its major U.S. pension plans in 2020.
In 2019, Ford contributed $789 million to its non-U.S. plans and $284 million to its U.S. plans, up from the 2018 contributions of $629 million and $140 million, respectively.
As of Dec. 31, U.S. plan assets totaled $44.6 billion, while projected benefit obligations totaled $45.7 billion, for a funding ratio of 97.6%. Non-U.S. plan assets as of that same date totaled $30 billion, while projected benefit obligations totaled $35.4 billion, for a funding ratio of 84.7%. The discount rate used to determine benefit obligations in the U.S. plans dropped to 3.3% in 2019 from 4.3% the previous year, while the non-U.S. plans' discount rate fell to 1.7% from 2.5%.
As of Dec. 31, the actual allocation of the U.S. defined benefit plans was 53.6% corporate fixed income, 26.7% U.S. government fixed income, 6.7% hedge funds, 4.3% private equity, 3.5% domestic equities, 3% international government fixed income, 2.7% real estate, 2.2% international equities, 1.2% mortgage and other asset-backed securities, -3.5% other, -.4% in cash and cash equivalents, and the rest in other assets.
Also as of Dec. 31, the actual allocation of the non-U.S. defined benefit plans was 60.9 % non-U.S. government fixed income, 15.9% other, 10.4% corporate fixed income, 4% hedge funds, 3.7% domestic equities, 3% international equities, 2.3% private equity, 2.1% mortgage and other asset-backed securities, 1.6% U.S. government fixed income, 1.1% real estate, -5.9% cash and cash equivalents, and the rest in various commingled funds.
