SEATTLE, Aug. 23, 2018 /PRNewswire/ -- Weyerhaeuser
Company (NYSE: WY) today announced actions to reduce the
liabilities of its U.S. pension plan while maintaining the plan's
current funded status.
First, Weyerhaeuser will offer select U.S. pension plan
participants the opportunity to elect an immediate lump sum
distribution. Distributions to those who elect to receive a lump
sum will be paid from plan assets during the fourth quarter of
2018.
Following the lump sum distributions, Weyerhaeuser intends to
transfer a portion of its U.S. pension assets and liabilities to an
insurance company through the purchase of a group annuity contract.
As part of the purchase, the insurer will assume responsibility for
annuity administration and benefit payments to select retirees.
This transaction would also be funded with plan assets and would be
expected to close in 2019. There will be no change to retirees'
pension benefits as a result of the group annuity transaction.
The company currently expects the lump sum and group annuity
transactions will reduce the pension liabilities of its U.S. plan
by approximately 30 percent and reduce the number of plan
participants and beneficiaries by approximately 50 percent.
To maintain the plan's current funded status in connection with
these transactions, the company intends to contribute approximately
$300 million (or approximately
$186 million after-tax) to its U.S.
pension plan during the third quarter of 2018. This contribution
will be deductible at the company's combined 2017 federal and state
tax rate of 38 percent.
Additionally, Weyerhaeuser's U.S. pension plan assets will be
transitioned to an allocation that will more closely match the
plan's liability profile going forward.
"We are committed to maintaining financially secure pension
benefits for our pension plan participants," said Doyle R. Simons, president and chief executive
officer. "These actions will position us to better manage future
pension plan costs while maintaining continued benefits security.
Additionally, we will benefit from favorable tax treatment on our
pension contribution."
Weyerhaeuser expects to record one-time non-cash pension
settlement charges upon completion of the lump sum offer and
annuity purchase, with amounts to be determined following the
conclusion of each transaction.
About Weyerhaeuser
Weyerhaeuser Company, one of the
world's largest private owners of timberlands, began operations in
1900. We own or control 12.4 million acres of timberlands in the
U.S., and manage additional timberlands under long-term licenses in
Canada. We manage these
timberlands on a sustainable basis in compliance with
internationally recognized forestry standards. We are also one of
the largest manufacturers of wood products. Our company is a real
estate investment trust. In February
2016, we merged with Plum Creek Timber Company, Inc. In
2017, we generated $7.2 billion in
net sales and employed approximately 9,300 people who serve
customers worldwide. We are listed on the North American and World
Dow Jones Sustainability Indices. Our common stock trades on the
New York Stock Exchange under the symbol WY. Learn more at
www.weyerhaeuser.com.
Forward Looking Statements
This news release contains
statements relating to Weyerhaeuser Company's U.S. pension plan
that are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, including with respect to the
following: the management of plan assets and obligations
including without limitation asset contributions and asset and
liability transfers; plan funding status; expected tax benefits;
asset investment strategy; future pension liability; and pension
settlement charges. These statements generally are identified by
words such as "expects," "intends," "will," and similar words and
expressions. These statements are based on our current expectations
and assumptions and are not guarantees of future results or
developments. The accuracy of our expectations and assumptions is
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties
include without limitation: participation by plan participants in,
and successful execution of, the lump sum distribution; negotiation
and execution of one or more annuity purchase contracts; successful
transition of plan assets to a new investment allocation;
realization of expected tax benefits relating to plan contribution;
and other matters described under "Risk Factors" in our 2017 Annual
Report on Form 10-K as well as those set forth from time to time in
our other public statements and reports and filings with the
Securities and Exchange Commission. Forward-looking
statements speak only as of the date they are made, and we
undertake no obligation to publicly update or revise any
forward-looking statements, whether because of new information,
future events, or otherwise.
For more information contact:
Analysts –
Beth Baum, 206-539-3907
Media – Nancy Thompson,
919-760-3484
Financial Media – Andrew
Siegel, 212-355-4449
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SOURCE Weyerhaeuser Company