Unisys Transfers its Swiss Pension Plan to a Multi-Employer Collective Foundation, Removing Additional Pension Obligations from its Balance Sheet
Company achieves goal of $1.2B in pension liability reduction
BLUE BELL, Pa., June 8, 2021 – Unisys Corporation (NYSE: UIS) today announced its Swiss subsidiary has transferred its pension plan to a multi-employer collective foundation. This agreement results in the removal of projected benefit obligations related to the retirees under the plan, valued at approximately $103 million, from the company's balance sheet.
This action, combined with the company's previously-announced lump-sum cash-out offer and separate annuity purchase for its U.S. pension plans, and transfer of its Dutch pension plan to a multi-employer fund, accomplishes the company's goal of removing a total of approximately $1.2 billion of pension obligations from its balance sheet by the end of the second quarter of 2021.
Unisys anticipates a one-time, non-cash, pre-tax settlement charge of approximately $29 million as a result of this agreement. The remainder of the Swiss plan obligations, representing active participants valued at approximately $56 million, will remain on the company's balance sheet.
“We are excited about this latest step in enhancing our balance sheet and successfully completing our plan to reduce global pension liabilities by $1.2 billion," said Unisys Chief Financial Officer Mike Thomson. “While the transfer of our pension plan in Switzerland marks the achievement of this specific goal, we will continue to consider and pursue additional steps in the future to further de-risk our pension obligations through additional reductions of potential volatility and costs."
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.
Follow Unisys on Twitter and LinkedIn.
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.
Investors: Courtney Holben, Unisys, 215-986-3379, firstname.lastname@example.org
Media: John Clendening, Unisys, 214-403-1981, email@example.com
RELEASE NO.: 0608/9840
Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.