Unisys Seeks to Defer Approximately $115 Million of 2020 U.S. Pension Cash Contributions
BLUE BELL, Pa., September 25, 2019 – Unisys Corporation (NYSE: UIS) today announced it will apply for waivers with the IRS to defer a portion of its pension contributions to its two U.S pension plans, thereby reducing total required cash contributions by approximately $115 million in calendar year 2020.
If the company's application is approved by the IRS, the company anticipates that these deferred contributions will be paid over a five-year period. Unisys will file the application for these waivers under Section 412(c) of the Internal Revenue Code.
"Our waiver application seeks to defer a portion of the 2020 contribution spike in our U.S. pension cash contributions while still fulfilling our pension obligations," said Mike Thomson, chief financial officer for Unisys. "If the waiver application is approved, the company will have better flexibility for managing through its near-term obligations while further strengthening operations to build upon our recent improvements in financial performance."
The IRS considers funding waiver applications based on the facts and circumstances applicable to the request. There is no specified time frame in which the IRS must make a decision. The IRS may choose not to grant the application, or to grant it for an amount less than the amount requested.
Unisys is a global information technology company that builds high-performance, security-centric solutions for the most demanding businesses and governments. Unisys offerings include cybersecurity software and services; digital transformation and workplace services; industry applications and services; and innovative software operating environments for high-intensity enterprise computing. For more information on how Unisys builds better outcomes securely 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. Forward-looking statements include, but are not limited to, any statements of the company's plans, strategies or objectives for future operations; any statements regarding future economic conditions, performance, uses of cash or pension plan obligations; and any statements of belief or expectation. 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. In particular, statements concerning future required pension contributions are subject to changes in interest rates, changes in pension assets and liabilities, changes in mortality rates and changes in factors that impact pension contribution requirements. The company assumes no obligation to provide periodic updates prior to a definitive ruling on the waiver application by the IRS or otherwise update any forward-looking statements.
RELEASE NO.: 0925/9710
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