For the 9 months ending 9/30/00, net income decreased 4% ($200M) to $5.41B over that for the same period in 99. For the same 9 months, returns generated from its pension plan assets grew 50% ($300M) to $.9B. So.... the returns on the pension plan represents almost 17% of net income for the first 9 months of 2000. Taken another way, if it wasn't for the increased returns of the pension plan, net income in the first 9 months of 2000 would have decreased 9% over that for the same period in 99.
sec.gov
For the twelve months ended December 31, 1999, the company realized cost
and expense reductions of $762 million (as noted in Footnote W on pages 86-88 of
the 1999 IBM Annual Report) due to the funded status of its pension plans. Of
the total 1999 annual savings, the conversion to the amended U.S. pension plan,
the Personal Pension Account (PPA) which was announced in the second quarter of
1999, contributed an estimated $167 million. In 2000, the company continues to
benefit from the returns generated by its pension plan assets. For the third
quarter and the first nine months of 2000, the benefit was approximately $ 291
million and $897 million, respectively, which represented an increase of $44
million and $305 million, respectively, over the same period in 1999. These cost
and expense reductions were offset by other salary and benefit increases. Future
effects of pension plans on the operating results of the company depend on
economic conditions and investment performance. |
