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Alcoa Corporation Takes Additional Actions on U.S. Pension and Other Postemployment Benefit Obligations

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Actions align with Alcoa Corporation's strategic priority to
strengthen balance sheet

Alcoa Corporation (NYSE:AA), a global leader in bauxite, alumina, and
aluminum products, announced today the signing of a group annuity
contract to transfer assets and related obligations of defined benefit
pension plans for certain U.S. retirees and beneficiaries.

The Company also has made a discretionary contribution of $100 million
to further fund its U.S. defined benefit pension plans.

Both the annuitization and the discretionary payment reduce the risk to
the Company associated with the volatility of its pension obligations
and align with Alcoa's strategic priority to strengthen the balance
sheet.

As part of the annuity contract, approximately $290 million in
obligations and related assets will be transferred later this month to
Athene Annuity and Life Company, a subsidiary of Athene Holding, Ltd.
(NYSE:ATH).

Athene, through its subsidiaries, has more than 800,000 policyholders
and is rated "A" from A.M. Best and "A-" from both Standard and Poor's
Global Ratings and Fitch Ratings with $114.8 billion in assets as of
June 30, 2018. It will assume benefit payments for approximately 10,500
participants. Those payments will begin in October of 2018; participants
will not see any change in the amount of their benefits.

Separately, Alcoa is notifying certain U.S. salaried retirees that the
Company will no longer provide retiree life insurance, effective
September 1, 2018. As part of this change, Alcoa will make a one-time
transition payment to the affected retirees totaling approximately $25
million.

In connection with both the annuity transaction and the elimination of
retiree life insurance, Alcoa will record an estimated non-cash net
settlement charge of $184 million (pre- and after-tax), or $0.98 per
share, in the third quarter of 2018.

On July 18, 2018, Alcoa reported that its net liability for pension and
other postemployment benefits (OPEB) was $2.7 billion as of June 30,
2018, down from $3.5 billion at year end 2017. Today's announced actions
will further reduce the net pension and OPEB liability by approximately
$175 million, before remeasurements for affected plans, and will be
reflected in the Company's third quarter 2018 financial results.

The year-to-date reduction in the referenced net liability reflects
several other actions taken in 2018, including the $500
million in debt proceeds
used to make discretionary contributions to
U.S. defined benefit pension plans, the $105 million for additional Canadian
pension contributions
, and other actions related to pension and
other postemployment benefits.

Dissemination of Company Information

Alcoa Corporation intends to make future announcements regarding company
developments and financial performance through its website at www.alcoa.com.

About Alcoa Corporation

Alcoa is a global industry leader in bauxite, alumina, and aluminum
products, built on a foundation of strong values and operating
excellence dating back nearly 130 years to the world-changing discovery
that made aluminum an affordable and vital part of modern life. Since
developing the aluminum industry, and throughout our history, our
talented Alcoans have followed on with breakthrough innovations and best
practices that have led to efficiency, safety, sustainability, and
stronger communities wherever we operate.

Forward-Looking Statements

This press release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
"anticipates," "believes," "could," "estimates," "expects," "forecasts,"
"intends," "may," "outlook," "plans," "projects," "seeks," "sees,"
"should," "targets," "will," "would," or other words of similar meaning.
All statements that reflect the Company's expectations, assumptions or
projections about the future, other than statements of historical fact,
are forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to known and unknown
risks, uncertainties, and changes in circumstances that are difficult to
predict. Although the Company believes that the expectations reflected
in any forward-looking statements are based on reasonable assumptions,
it can give no assurance that these expectations will be attained and it
is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of risks
and uncertainties. Additional information concerning factors that could
cause actual results to differ materially from those projected in the
forward-looking statements is contained in the Company's filings with
the U.S. Securities and Exchange Commission. The Company disclaims any
obligation to update publicly any forward-looking statements, whether in
response to new information, future events or otherwise, except as
required by applicable law.

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