International Business Machines Corp., Armonk, N.Y., plans to contribute about $300 million to its non-U.S. defined benefit plans in 2021.
The amount represents minimum required contributions, the largest of which will go to plans in Spain and Japan, the company disclosed Tuesday in its 10-K filing with the SEC.
IBM does not expect to make any contributions to its U.S. plans this year.
In 2020, IBM contributed $182 million to its non-U.S. pension plans and did not make any contributions to its U.S. plans.
As of Dec. 31, non-U.S. pension plan assets totaled $43.83 billion, while projected benefit obligations totaled $52.99 billion, for a funding ratio of 82.7%, down from 83.4% a year earlier.
The non-U.S. plans' discount rate fell to 0.86% as of Dec. 31 from 1.19% the year before.
Also as of Dec. 31, U.S. pension plan assets totaled $54.39 billion, while PBO totaled $52.24 billion, for a funding ratio of 104.1%, up from 103.1% the year before.
The U.S. plans' discount rate fell to 2.2% from 3.1% a year earlier.
The U.S. plans' target allocation is 80% fixed income, 12% equities 5% other investments and 3% real estate. The weighted-average target allocation for non-U.S. plans is 70% fixed income, 16% equities, 11% other investments and 3% real estate.
