Funding Fun House

Detractors say current accounting lets companies distort the picture they present of pension plan performance.

Joseph McCafferty is news editor at CFO.

The Reality Gap

Pension plan unexpected losses of more than $5 billion in 2001 (in $ millions).
Sources: Company data, CSFB estimates

Company Expected Returns Actual Returns Unexpected Gain/(Loss)
General Motors $8,126 ($4,835) ($12,961)
Boeing 3,452 (7,150) (10,602)
IBM 6,264 (3,964) (10,228)
Lucent Technologies 3,373 (6,830) (10,203)
Verizon 4,811 (3,063) (7,874)
Ford Motor 4,881 (2,489) (7,370)
General Electric 4,327 (2,876) (7,203)
SBC Communications 3,515 (2,798) (6,313)

Pension Shortfallers

Companies with defined benefit pension plans underfunded by at least $1 billion in 2001 (in $ millions).
Sources: Company data, CSFB estimates

Company
2001 Funding
% Funded
2000 Funding
% Funded
General Motors
($12,671)
85%
($779)
99%
Exxon Mobil
(7,249)
63
(4,139)
78
Ford Motor
(2,460)
95
4,344
109
Delphi
(2,367)
72
(302)
96
Delta Air Lines
(2,353)
78
1,135
112
United Technologies
(2,329)
81
887
107
AMR
(1,940)
74
(703)
89
Pfizer
(1,308)
81
(211)
97
Procter & Gamble
(1,135)
56
(936)
64
ChevronTexaco
(1,081)
85
389
110
Pharmacia
(1,063)
73
(566)
86
Goodyear Tire & Rubber
(1,039)
80
(302)
94
Raytheon
(1,007)
91
3,352
132

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