BETHESDA, Md., June 27,
2022 /PRNewswire/ -- Lockheed Martin
Corporation (NYSE: LMT) today announced it has purchased group
annuity contracts from Athene Holding Ltd. (NYSE:
ATH), a leading retirement services company. Under the contracts,
Lockheed Martin will transfer approximately $4.3 billion of its gross pension obligations and
related plan assets for approximately 13,600 U.S. retirees and
beneficiaries to Athene. The contracts were purchased using assets
from Lockheed Martin's master retirement trust and no additional
funding contribution was required as part of this
transaction.
On Jan. 1, 2023, Athene will begin
paying and administering the retirement benefits of the affected
retirees and beneficiaries in the Lockheed Martin Corporation
Salaried Employee Retirement Program and the Lockheed Martin
Aerospace Hourly Pension Plan. The transaction will result in no
changes to the benefits received by retirees and beneficiaries.
Transferred pension benefits are subject to the protections offered
by the State Guaranty Association in the states where the retirees
and beneficiaries live. Affected retirees and beneficiaries will
receive a letter with additional details about the transfer.
In connection with this transaction, the company expects to
recognize a non-cash, non-operating settlement charge of
approximately $1.5 billion
($1.2 billion, or $4.50 per share, after tax) in the second quarter
of 2022, related to the accelerated recognition of actuarial losses
for the affected plans that were included in stockholders' equity.
The actual settlement charge will depend on finalization of the
actuarial assumptions, including discount rate and investment rate
of return, as of the measurement date. The charge was not included
in the company's prior 2022 financial outlook released on
April 19, 2022, and the company will
provide an update to its 2022 financial outlook with its second
quarter earnings release.
About Lockheed Martin
Headquartered in
Bethesda, Maryland, Lockheed
Martin Corporation is a global security and aerospace company that
employs approximately 114,000 people worldwide and is principally
engaged in the research, design, development, manufacture,
integration and sustainment of advanced technology
systems, products and services.
Please follow @LMNews on Twitter for the latest
announcements and news across the company.
Forward-Looking Statements
This news release contains statements that, to the extent they
are not recitations of historical fact, constitute forward-looking
statements within the meaning of the federal securities laws,
including the expected non-cash settlement charge, and are based on
Lockheed Martin's current expectations and assumptions. The words
"believe," "estimate," "anticipate," "project," "intend," "expect,"
"plan," "outlook," "scheduled," "forecast," and similar expressions
are intended to identify forward-looking statements. There can be
no assurance that future events will occur as anticipated, if at
all, or that actual results will be as expected. These statements
are not guarantees of future performance and are subject to risks
and uncertainties. Actual results may differ materially due to
factors such as: the amount of the expected settlement charge, the
accuracy of the Lockheed Martin's estimates and projections; timing
and estimates regarding pension funding and movements of interest
rates; and other changes that may affect pension plan assumptions,
stockholders' equity, the level of the FAS/CAS adjustment and
actual returns on pension plan assets and the impact of pension
related legislation. These are only some of the factors that may
affect the forward-looking statements contained in this news
release. For a discussion identifying additional important factors
that could cause actual results to vary materially from those
anticipated in the forward-looking statements, see Lockheed
Martin's filings with the U.S. Securities and Exchange Commission
("SEC") including, but not limited to, "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
"Risk Factors" in the company's Annual Report on Form 10-K for the
year ended December 31, 2021 and
subsequent quarterly reports on Form 10-Q. Lockheed Martin's
filings may be accessed through the Investor Relations page of its
website, www.lockheedmartin.com/investor, or through the website
maintained by the SEC at www.sec.gov. Except where required by
applicable law, Lockheed Martin expressly disclaims a duty to
provide updates to forward-looking statements after the date of
this news release to reflect subsequent events, changed
circumstances, changes in expectations, or the estimates and
assumptions associated with them. The forward-looking statements in
this news release are intended to be subject to the safe harbor
protection provided by the federal securities laws.
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SOURCE Lockheed Martin