logo
Share SHARE
FONT-SIZE Plus   Neg

Kaman Changes Pension Accounting

Kaman Corp. (KAMN), which conducts business in the aerospace and industrial distribution markets, said Monday that it is changing its policy for recognizing pension expense.

Previously, for its non-contributory qualified defined benefit pension plan, the company used a market-related value of plan assets reflecting changes in the fair value of plan assets amortized over a four-year period. Under the new accounting method, the market-related value of plan assets reflects the actual change in the fair value of the plan assets for the year.

While the historical policy of recognizing pension expense is acceptable, the company said it believes that the new policy is preferable as it eliminates the delay in recognition of the change in fair value of plan assets for the calculation of the market-related value of plan assets.

The company said the new accounting policy has reduced net income previously reported for 2010 by about $2.7 million, or $0.11 per share, and reported net income in 2009 by about $7.7 million, or $0.30 per share. The impact on the three quarters already reported in 2011 has been an increase to net income of $1.8 million, or $0.07 per share.

As a result of the accounting change, full year 2011 pension expense is now expected to be $3.9 million lower, on a pre-tax basis, than previous expectations, which will result in an anticipated increase to full year 2011 net earnings of $2.4 million, or $0.09 per share, Kaman said.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Shares of Apple Inc. (AAPL) gained 5 percent in extended trading session after the tech giant reported a third-quarter profit and revenues that trumped Wall Street expectations driven by higher-than-expected iPhone sales. Although, Apple reported its second year-over-year decline in iPhone sales,... Micro-blogging site Twitter Inc. (TWTR), Tuesday reported a smaller loss for the second quarter, as revenues climbed 20 percent reflecting growth in its advertising business despite a continued poor growth in number of users. Adjusted earnings for the quarter trumped Wall Street expectations, while revenues... BlackBerry has launched its second Android smartphone DTEK50, which the struggling company touts as the most secure Android smartphone ever. DTEK50 is BlackBerry's second smartphone powered by Android, following the PRIV. The device actually shares its design and hardware specifications with the recently...
comments powered by Disqus
RELATED NEWS
Trade KAMN now with 
Follow RTT