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
Saudi Arabia's oil major Aramco is reportedly planning to list its much hyped initial public offering on the Saudi stock market, Tadawu only. Earlier, the Dhahran-based Saudi Arabian national petroleum company was planning for a wider international listing. Following a disastrous week of public-relations fiascoes involving transportation of pets, United Airlines said Tuesday it is suspending its Petsafe program with immediate effect. PetSafe is United Airlines' specially designed program for transporting animals that are not eligible to travel in the aircraft cabin. The program offers airport-to-airport travel for animals to nearly 300 destinations. Chipotle Mexican Grill, the Mexican food-chain that continues to struggle from its food-borne illness scandal, on Tuesday said it has appointed Chris Brandt as its new Chief Marketing Officer to replace Mark Crumpacker, who resigned last week. Most recently, Brandt worked at Bloomin' Brands, where...
comments powered by Disqus
Follow RTT