United States Steel Corporation Further Strengthens Balance Sheet by Permanently De-Risking a Portion of its Pension Plan
United States Steel Corporation (NYSE: X) (“U. S. Steel”) today
announced it has purchased group annuity contracts from Banner Life
Insurance Company and William Penn Life Insurance Company of New
York (both subsidiaries of Legal & General America, Inc. and,
together, referred to as “Legal & General”) to transfer
approximately $284 million of the Company’s pension plan
obligations to Legal & General. The purchase of the group
annuity contracts will be funded directly by the assets of the
“Legal & General was carefully selected by an independent
fiduciary as a highly rated and experienced retirement benefits
provider to ensure our retirees’ benefits are secured and
maintained, a continued priority of our Best for All℠ strategy,”
said U. S. Steel President and Chief Executive Officer David B.
Burritt. “This transaction is yet another meaningful step in
strengthening the Company’s balance sheet and further de-risking
our pension plan, a plan that remains more than 100% funded and is
an important source of differentiation versus some peers in the
The purchase results in the transfer of administrative and
benefit-paying responsibilities for approximately 17,800 U.S.
retirees and beneficiaries to Legal & General. Legal &
General will begin paying benefits for certain retirees and
beneficiaries in the United States Steel Corporation Plan for
Employee Pension Benefits (Revision of 2003) on January 1, 2022.
There will be no change to the pension benefits for any retirees
and beneficiaries as a result of the transaction. Details will be
provided to retirees and beneficiaries whose continuing payments
will be fulfilled by Legal & General.
As a result of the transaction, the Company expects to recognize
a non-cash pension settlement charge of approximately $110 million,
subject to finalization of actuarial assumptions and other
applicable adjustments in the fourth quarter of 2021.
This release contains information that may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “target,” “forecast,” “aim,” "should,"
“will,” "may" and similar expressions or by using future dates.
However, the absence of these words or similar expressions does not
mean that a statement is not forward-looking. Forward-looking
statements are not historical facts, but instead represent only the
Company’s beliefs regarding future events, many of which, by their
nature, are inherently uncertain and outside of the Company’s
control. It is possible that the Company’s actual results and
financial condition may differ, possibly materially, from the
anticipated results and financial condition indicated in these
forward-looking statements. Management believes that these
forward-looking statements are reasonable as of the time made.
However, caution should be taken not to place undue reliance on any
such forward-looking statements because such statements speak only
as of the date when made. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from the Company's historical
experience and our present expectations or projections. These risks
and uncertainties include, but are not limited to the risks and
uncertainties described in “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2020, and those
described from time to time in our future reports filed with the
Securities and Exchange Commission. References to "we," "us,"
"our," the "Company," and "U. S. Steel," refer to United States
Steel Corporation and its consolidated subsidiaries.
Founded in 1901, United States Steel Corporation is a leading
steel producer. With an unwavering focus on safety, the company’s
customer-centric Best for All℠ strategy is advancing a more secure,
sustainable future for U. S. Steel and its stakeholders. With a
renewed emphasis on innovation, U. S. Steel serves the automotive,
construction, appliance, energy, containers, and packaging
industries with high value-added steel products such as U. S.
Steel’s proprietary XG3™ advanced high-strength steel. The company
also maintains competitively advantaged iron ore production and has
an annual raw steelmaking capability of 26.2 million net tons. U.
S. Steel is headquartered in Pittsburgh, Pennsylvania, with
world-class operations across the United States and in Central
Europe. For more information, please visit www.ussteel.com.
version on businesswire.com: https://www.businesswire.com/news/home/20211111006066/en/
John O. Ambler Vice President Corporate Communications T – (412)
433-2407 E – firstname.lastname@example.org
Kevin Lewis Vice President Investor Relations T – (412) 433-6935
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