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Donnelley Financial Solutions Completes Pension Plan Termination

Donnelley Financial Solutions, Inc. (NYSE: DFIN), a prominent provider of compliance and regulatory software, has successfully concluded a significant phase in its financial strategy: the termination of its defined benefit pension plan. This development was officially communicated by the company on October 23, 2025, confirming that the termination process has reached its successful conclusion after being initiated in 2024. This pension plan, which had been frozen since 2011, has now been formally exited, showcasing the company’s commitment to sound financial practices.

Overview of the Termination Process

The termination of the pension plan was not merely administrative; it involved a meticulous process of ensuring that all obligations were adequately settled. The company undertook this endeavor by issuing lump-sum payments to eligible plan participants and acquiring a non-participating irrevocable group annuity contract from an established third-party insurer. This contract is fortified by state guarantees, ensuring the security of future payouts to the plan participants.

In connection with the settlement of the plan obligations, DFIN contributed a substantial amount of $12.5 million in cash during the third quarter of 2025, aimed at fully funding the plan. Post-settlement, the company evaluated its assets and obligations related to the plan, resulting in a significant pre-tax non-cash settlement charge of approximately $83 million that will be recorded in its third quarter results. This acknowledgment reflects unrealized accumulated losses associated with the pension plan that were previously recorded as part of the company's comprehensive loss.

Financial Impact

An important aspect of this plan settlement is the removal of a net liability from DFIN’s balance sheet. With the conclusion of the settlement, DFIN successfully cleared roughly $10 million in net liability, which consisted of about $200 million in plan obligations against approximately $190 million in plan assets. This major recalibration demonstrates a strategic enhancement in the company's financial flexibility and positions it favorably for future business endeavors.

Dave Gardella, DFIN’s Chief Financial Officer, emphasized the benefit of this transaction, stating, "This transaction reflects our continued commitment to prudent financial management and delivering long-term value to our shareholders. By fully funding the plan and partnering with a trusted insurer, we've secured future benefits for plan participants while reducing risk and further enhancing our financial flexibility."

DFIN's Commitment to Stakeholders

The successful termination of the pension plan signifies DFIN's dedication not only to its financial health but also to the welfare of its employees and stakeholders. As a leading provider in the compliance and regulatory software realm, the company continuously seeks to enhance its service offerings while managing risks effectively. By undertaking this proactive measure, DFIN is paving the way for a more streamlined operational approach and ensuring the long-term benefits of its workforce, thereby fostering trust and reliability within its corporate structure.

In conclusion, Donnelley Financial Solutions showcases a robust example of strategic financial management through the termination of its pension plan. As they move forward, the company is expected to leverage this enhanced financial positioning to explore new growth avenues while maintaining its commitment to compliance and transparency in the financial reporting space. For ongoing updates regarding DFIN and its services, stakeholders and interested parties are encouraged to visit DFINsolutions.com or follow their updates on LinkedIn.