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Sept. 13, 2022, 5:32 p.m. EDT

IBM transfers $16 billion in pension obligation to Prudential, MetLife

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By Wallace Witkowski

International Business Machines Corp. /zigman2/quotes/203856914/composite IBM -0.13% said late Tuesday it will book a charge of about $5.9 billion in the third quarter to offload pension risk. The Armonk, NY-based tech company said in a Securities and Exchange Commission filing it is transferring about $16 billion of pension obligations, for benefits that began to be paid before 2016, through group annuity contracts to Prudential Financial Inc. /zigman2/quotes/203750923/composite PRU -0.24% and MetLife Inc. /zigman2/quotes/206319319/composite MET -1.30% The contracts cover 100,000 IBM participants and beneficiaries. Net of tax, the charge for the transfer will be $4.4 billion, IBM said, and will not affect the company's adjusted profit or free cash flow. Shares of IBM were little changed after hours, following a 2.6% decline in the regular session to close at $127.25.

/zigman2/quotes/203856914/composite
US : U.S.: NYSE
$ 147.59
-0.19 -0.13%
Volume: 1.31M
Dec. 9, 2022 2:22p
P/E Ratio
107.63
Dividend Yield
4.47%
Market Cap
$133.61 billion
Rev. per Employee
$196,791
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/zigman2/quotes/203750923/composite
US : U.S.: NYSE
$ 101.36
-0.24 -0.24%
Volume: 617,252
Dec. 9, 2022 2:22p
P/E Ratio
140.83
Dividend Yield
4.74%
Market Cap
$37.39 billion
Rev. per Employee
$1.50M
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/zigman2/quotes/206319319/composite
US : U.S.: NYSE
$ 72.65
-0.96 -1.30%
Volume: 2.18M
Dec. 9, 2022 2:23p
P/E Ratio
27.29
Dividend Yield
2.75%
Market Cap
$57.75 billion
Rev. per Employee
$1.71M
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