Locklock Martin cuts pension liabilities by $4. 9 B due to actuarial losses
Aug 3 - Lockheed Martin Corp said on Tuesday it would cut its pension liabilities by about $4.9 billion and revised its forecast for the full year due to actuarial losses it expects to incur.
The U.S. nuclear weapons maker bought group annuity contracts from Athene Holding Ltd and will transfer pension obligations and related plan assets to the retirement services provider for approximately 18,000 U.S. retirees and beneficiaries.
Lockheed will take a non-cash charge related to actuarial losses of around $1.7 billion in the third quarter.
The company expects full-year earnings of $21.95 to $22.25 per share, down from its prior forecast of $26.70 to $27.00.
The contracts were purchased by investing in the Lockheed Master Retirement Trust assets and no additional funding was used, said the company.
There will be no change to the retirement plans of retirees and beneficiaries, Lockheed said.