LMT - Lockheed to transfer $4.3B of pension obligations to Athene

Lockheed Martin (NYSE:LMT) said on Monday it has bought annuity contracts that will enable the transfer of ~$4.3B in gross pension obligations and related plan assets for ~13,600 U.S. retirees and beneficiaries to Athene Holding (ATH). Lockheed (LMT) said the contracts were purchased using assets from its master retirement trust, and no additional funding contribution was required as part of the transaction. As a result of the transaction, Lockheed (LMT) expects to record a ~$1.5B non-cash settlement charge in Q2 related to the accelerated recognition of actuarial losses for the affected plans that were included in stockholders' equity. The company said it will provide an update to its FY 2022 financial outlook with its Q2 earnings release. Lockheed Martin (LMT) is a solid dividend stock and has a history of raising its dividend annually, Jim Sloan writes in a bullish analysis published recently on Seeking Alpha.

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Lockheed to transfer $4.3B of pension obligations to Athene