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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (55804)	10/5/2001 11:45:42 AM
From: Wyätt Gwyön	Respond to of 77400

i believe IBM and some of the other old tech names like MOT have defined benefit pension plans going back many years. my understanding is these are treated as liabilities for the co. to the extent that equity gains raise the pension reserves above calculated liabilities, some cos "dip into" pension reserves to prop up reported earnings. but that game can work in reverse. which is to say declining pension portfolios could force some cos to dip into current and future earnings to meet future liabilities.