Unisys Dutch Pension Plan Transferred to a Multi-Employer Fund, Removing More Than $550M in Pension Liabilities from the Company's Balance Sheet
Transaction marks the company's third de-risking action since December 2020
BLUE BELL, Pa., May 19, 2021 – Unisys Corporation (NYSE: UIS) today announced the primary pension plan related to its Dutch subsidiary has been transferred to a multi-client circle within a multi-employer fund effective May 1. This transaction results in the removal of all pension liabilities related to the plan, valued at approximately $550 million, from the company's balance sheet.
Unisys anticipates that this action will result in a one-time, non-cash, pre-tax settlement charge of approximately $185 million.
The action, along with the company's recently announced lump-sum cash-out offer and a separate annuity purchase for its U.S. pension plans, has resulted in the removal of a total of approximately $1.1 billion of pension liabilities from the Unisys balance sheet.
“The transfer of our pension plan in the Netherlands represents the latest step toward our goal of reducing global pension liabilities by $1.2 billion," said Unisys Chief Financial Officer Mike Thomson. “We look forward to achieving this goal, and we continue to consider and pursue additional actions to further reduce potential volatility and costs associated with our pension obligations."
Unisys is a global IT solutions company that delivers successful outcomes for the most demanding businesses and governments. Unisys offerings include digital workplace services, cloud and infrastructure services, software operating environments for high-intensity enterprise computing, business process solutions and application development services. Unisys integrates security into all of its solutions. For more information on how Unisys delivers for its clients across the government, financial services and commercial markets, visit www.unisys.com.
Any statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Additional discussion of factors that could affect Unisys future results is contained in our periodic filings with the Securities and Exchange Commission.
RELEASE NO.: 0519/9838
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