Donnelley Financial completes pension plan termination, estimates ~$83M charge in Q3

Donnelley Financial (NYSE:DFIN [https://seekingalpha.com/symbol/DFIN]) announced [https://seekingalpha.com/pr/20276880-dfin-successfully-completes-pension-plan-termination] on Thursday the completion of the termination of its primary defined benefit pension plan, and ~$83M charge in the third quarter related to the settlement.

The plan had been frozen since 2011.

The termination process had begun in 2024.

The company had settled the plan obligations through a combination of lump sum payments and the purchase of a non-participating irrevocable group annuity contract from a third-party insurer. Donnelley said it had made a cash contribution of $12.5M to fully fund the plan during the third quarter.

As a result, the company estimates a pre-tax non-cash settlement charge of ~$83M in its Q3 results.

The settlement results in the removal of a net liability of ~$10M from the company's balance sheet.

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