This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kaman Announces Change In Pension Accounting

Stocks in this article: KAMN

Kaman Corporation (NYSE: KAMN) today announced that it is changing its policy for recognizing pension expense.

Previously, for its non-contributory qualified defined benefit pension plan (“Qualified 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 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 new method, adopted in the fourth quarter of 2011, will provide greater transparency to the Company’s underlying operating results,” commented William Denninger, Senior Vice President and CFO. “This change will have no impact on the Company’s cash flow or pension benefits for employees and retirees.”

The change in accounting has been applied retrospectively to prior periods. The new accounting policy has reduced net income previously reported for 2010 by approximately $2.7 million (or $0.11 per diluted share) and reported net income in 2009 by approximately $7.7 million (or $0.30 per diluted 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 diluted share). The table below illustrates the quarterly effect on previously reported earnings per share for 2010 and 2011.

  2010   2011
Q1   Q2   Q3   Q4   Full Yr. Q1   Q2   Q3
Diluted EPS Impact
Diluted EPS -Previously Reported $ 0.07 $ 0.23 $ 0.61 $ 0.56 $ 1.47 $ 0.52 $ 0.50 $ 0.47
Pension Change Adjustment   -0.03   -0.02   -0.03   -0.03   -0.11   0.02   0.03   0.02
Diluted EPS - Revised $ 0.04 $ 0.21 $ 0.58 $ 0.53 $ 1.36 $ 0.54 $ 0.53 $ 0.49

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

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs