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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Alias Shrugged who wrote (173717)	6/18/2002 10:28:32 PM
From: robnhood	Respond to of 436258

edit

To: Alias Shrugged who wrote (173717)	6/18/2002 10:40:05 PM
From: Alias Shrugged	Read Replies (2) \| Respond to of 436258

Post 3 +++++++++++++++++++++++++++++++++++++++++ The Projected Benefit Obligation (PBO) represents the Plan's accrued promise to pay benefits. It equals the expected future pension payments discounted for mortality, interest, etc. It represents an "expense target." To the extent that the Plan's market value exceeds the Plan's PBO, the plan has surplus assets and the expensing rules work to eventually record those surplus assets as an asset of the Company. Shown below are year-end values for MV, PBO, surplus (excess of MV over PBO), and the amount of the surplus recorded on the Company's books in the form of a prepaid pension asset. Prepaid EOY EOY Pension Year MV PBO Surplus Asset ----------------------------------------------------- 1994 26780 25783 997 1135 1995 31209 30235 974 1987 1996 34281 29279 4552 2272 1997 38475 33161 5314 2692 1998 41593 36561 5032 3146 1999 45584 34434 11150 3784 2000 44594 37539 7055 4679 2001 39565 38609 956 5705 Things were looking most excellent at 12/31/99. Assets exceeded liabilities by $11.150 billion. Of that amount, IBM had $3.784 billion recorded as a prepaid asset. As of 12/31/01, surplus is now only $956 million. Unfortunately, the Company has a prepaid asset of $5.7 billion now sitting on their books. Oooopppss.