Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (6988)	11/18/2000 5:30:22 PM
From: THE WATSONYOUTH	Respond to of 8218

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.