Company: UIS
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000746838-25-000020
Chunk: 19

Company: UNISYS CORP
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 19
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 estimates its future cash contributions to its global defined benefit pension plans based on year-end pension data, assumptions and agreements.

For the six months ended June 30, 2025, the company made cash contributions totaling $287.2 million, which included a discretionary contribution of $250 million to its U.S. defined benefit pension plans. The discretionary contribution was funded approximately through $200 million from the net proceeds of issuance of the 2031 Notes and $50 million from cash on hand. As a result, the company’s pension and postretirement liabilities and projected future required cash contributions were reduced. The company also made strategic changes to its underlying investments in its U.S. qualified defined benefit pension plans, 

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leading to a future expected decrease in the return on plan assets to 5.0% compared to an expected return of 7.0% as of December 31, 2024. 

For the remainder of 2025, the company expects to make cash contributions of approximately $55 million primarily to its U.S. defined benefit pension plans, resulting in total 2025 expected cash contributions of approximately $342 million to its global defined benefit pension plans, which are comprised of approximately $314 million for the company’s U.S. defined benefit pension plans and approximately $28 million for the company’s international defined benefit pension plans.

Based on current legislation, global regulations, recent interest rates and expected returns, the company estimates future total cash contributions to its global defined benefit pension plans of approximately $82 million in 2026, compared with previous estimate of $122 million.

For the six months ended June 30, 2024, the company made cash contributions of $10.3 million primarily to its international defined benefit pension plans. In 2024, the company made cash contributions of $21.9 million primarily to its international defined benefit pension plans.

If the company is not able to generate sufficient cash flows from operations, it may need to obtain additional funding in order to make these contributions. Any material deterioration in the value of the company’s global defined benefit pension plan assets, as well as changes in pension legislation, volatility in the capital markets, discount rate changes, asset return changes, or changes in economic or demographic trends, could require the company to make cash contributions in different amounts and on a different schedule than previously estimated.

The company will continue to evaluate opportunities for additional reduction of its global defined benefit pension obligations in future periods depending on overall market conditions. As a result of the company’s significant accumulated other comprehensive losses associated with