Actuarial Gains and Losses

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Actuarial Gains and Losses

The actual amount a company pays on its pensions compared to previous estimates. An actuarial gain occurs if the company pays less than it thought it would, while an actuarial loss happens if it pays more than expected. Actuarial gains and losses may result in a change to a company's actuarial assumptions. See also: Actuarial adjustment.
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If the actual return on pension plan assets is greater than the expected return, there is an actuarial gain. If the actual return on the plan assets is less than the expected return, there is an actuarial loss.
Adjusting for the $0.22 non-cash actuarial gain on benefit plans from the annual remeasurement process and $0.20 of costs primarily for merger- and integration- related items, earnings per share was $0.63 compared to an adjusted $0.56 in the year-ago quarter, an increase of 12.5%.
Adjusting for the $0.22 non-cash actuarial gain on benefit plans from the annual remeasurement process and $0.20 of costs primarily for merger- and integration-related items, earnings per share was $0.63 compared to an adjusted $0.56 in the year-ago quarter, an increase of 12.5%.
Records the $800 increase in the liability for the actuary's adjustment while the corresponding debit is added to the deferred actuarial gain or loss component of other comprehensive income.
If the actual experience of the plan differs from that which was assumed to occur by the choice of actuarial assumptions, an actuarial gain or loss occurs.
The difference between the actual and expected return on plan assets is an actuarial gain or loss (see below).
Note 1: The effect on the Actuarial Accrued Liability and/or the Normal Cost resulting from changes in the Actuarial Assumptions, the Actuarial Cost Method or pension plan provisions should be described as such, not as an Actuarial Gain (Loss).
Adjusting for the $0.22 non-cash actuarial gain on benefit plans from the annual remeasurement process and $0.20 of costs primarily for merger--and integration-related items, earnings per share was $0.63 compared to an adjusted $0.56 in the year-ago quarter, an increase of 12.5%.
* For each period a statement of income is presented, the net actuarial gain or loss and the prior service cost or credit must be recognized in other comprehensive income, separated into amounts initially recognized in other comprehensive income and amounts subsequently recognized as adjustments to other comprehensive income, as those amounts are included as components of net periodic benefit cost.
($ in thousands) 2003 2002 2001 Components of net periodic benefit costs: Service costs $5,897 $5,135 $4,716 Interest costs 15,211 14,877 14,498 Expected return on assets (20,730) (21,110) (20,672) Amortization of prior service costs 1,156 1,148 1,247 Recognized net actuarial gain (417) (1,855) (2,687) Settlement (gain) loss -- -- (884) Amortization of net transition (950) (947) (965) obligations (assets) Net periodic benefit costs (income) 167 (2,752) (4,747) Less amount capitalized 14 (352) (391) Net periodic benefit costs (income) $153 ($2,400) ($4,356) 1.
When adjusting for a non-cash actuarial gain on benefit plans, amortization, merger- and integration-related expenses and other items, operating income was $7.5 billion, or $6.9 billion on a comparative basis, versus $7.6 billion in the year-ago quarter and operating income margin was 19.7%, or 17.7% on a comparative basis, versus 19.4% in the year-ago quarter.