Goodyear plans $1.35 billion in pension contributions over 3 years

ERJ staff report (P&I)

Goodyear Tire & Rubber Co. plans to contribute $1.35 billion to its pension plans through 2013 to improve the funded status of the plans, Darren R. Wells, executive vice president and CFO of Akron, Ohio-based company, said Thursday.

Wells said the company expects to contribute an estimated $275 million, $550 million, and $525 million to its worldwide pension plans in 2011, 2012 and 2013, respectively.

He made the statements at a Deutsche Bank conference in Chicago; his materials were posted on the company's website.

According to Goodyear's 2010 annual report dated Dec. 31, Goodyear had $3.7 billion in assets and $5.6 billion in liabilities for its US defined benefit pension plans, resulting in a funded status of 66 percent. The company's non-US pension plan had assets of $2.1 billion and liabilities of $2.7 billion for a funded status of 77 percent.

The asset allocation for the company's US plans as of Dec. 31 was 66.1 percent equities, 31.6 percent fixed income, 1.7 percent cash and other, and 0.6 percent real estate. Allocation for Goodyear's non-US plans was 52.1 percent fixed income, 31.9 percent equities, 10.9 percent cash and other, and 5.1 percent real estate.

From Pensions & Investments (A Crain publication)