Page 57 - Demo samer flip book

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two "unrecognized" lines on the footnote above boost the negative into a positive: the losses for the current year--and prior years, for that matter--are not recognized in full; they are amortized or deferred into the future. Although the current position is negative almost one billion, smoothing captures only part of the loss in the current year--it's not hard to see why smoothing is controversial.
Cash Contributed to the Pension Is Not Pension Cost
Now we have enough understanding to take a look at why cash contributed to the pension plan bears little--if any--resemblance to the pension expense (also known as "pension cost") that is reported on the income statement and reduces reported earnings. We can find actual cash contributed in the statement of cash flows:
Now compare these cash contributions to the pension expense. In each of the three years reported, cash spent was significantly higher than pension expense:
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