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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Earlie who wrote (72984)6/18/2002 9:28:39 PM
From: Alias Shrugged  Read Replies (3) of 436258
 
Earlie

I have updated my summary and analysis of IBM Pension
Expense. There is quite a bit here, and I have played
around with some "what if" scenarios. I will present the
analysis using several different posts.

I have no position in any IBM securities or derivatives
(long or short).

Mike

===============================================

IBM Pension Expense

Most figures for 2001 and prior are taken directly from IBM
Annual Reports. Some figures had to be estimated or backed
into (such as the asset values used to calculate expected
return). IMHO, little accuracy has been sacrificed as a
result of the estimates.

IBM has incurred the following pension expense.
Parantheses indicates pension income. All figures
are millions of $.

1994 11
1995 (252)
1996 (285)
1997 (420)
1998 (454)
1999 (638)
2000 (896)
2001 (1025)

IBM incurred over $1 billion of income from the pension
plan in 2001. Since 2000, IBM has been assuming pension
assets will appreciate 10% per year. Prior to 2000, IBM
assumed either 9.25% or 9.5%.
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