[NV 375]

I see IBM just covered the pension plan with cash and 24 million+ shares of stock. Probable a wise thing to do before the stock price dips lower. Guess that will put a dent in the cash on hand...but with IBM accounting gimmicks one never knows.

So, with IBM having lowered there pension plan return for '03 to a paltry 8.5% , how long will we have to wait again before IBM has to consider getting the plan funded. Oh well, it's the earnings pick me upper that counts.

Would anyone care to comment on the threefold increase in Receivables for IBM in Q3? Can't help but recall the press release (which of course sent the stock upwards $3+ that day) 6-8 weeks ago, where IBM announced improved vendor financing terms including an additional grace (for lack of a better word) period of 90 days to pay. Can't help but think that a few customers are deliquent on payments and dare I say IBM is close to having to charge them off.

Call me a cynic. but I somehow get the impression that press releases as such are when IBM goes into there buyback buying mode. Well, then and when some guy named Lou or Sam decide they want to unload a few shares perhaps.

Guess it all just means IBM will have to come up with some of the usual end of the quarter non recurring asset sales which are included as normal operating revenues/earnings. Wonder what asset sales occured on Dec 30 or 31 that aren't being disclosed. For a company whose press machines run 24x7 it's amazing how they fail to mention some of the more important stuff.

Lastly can'y help but notice at what time the press release occured. Guess they want to make sure everybody gets copied.

IBM Makes Year-End Contribution to U.S. Pension Fund
TUESDAY, DECEMBER 31, 2002 9:37 PM
- BusinessWire



IBM Contributes $3.95 Billion to Pension
Wed Jan 1,10:03 AM ET

ARMONK, N.Y. (Reuters) - International Business Machines Corp. (NYSE:IBM - news) said on Tuesday that it had contributed $3.95 billion in cash and stock to its U.S. pension plan, which declined in value after the stock market bubble popped in 2001


IBM said that it contributed $2.09 billion in cash, or 52.9 percent of the total amount. It also contributed 24.03 million shares, worth $1.86 billion.


The computer services, hardware and software company said on Dec. 4 that the fund had a shortfall of $3 billion and that it planned to fully fund it in 2002 with contributes of IBM stock, which the fund could later sell if it chose, and cash.


IBM said the gap in the fund had shrunk from a $4.5 billion shortfall it had first identified in October due to subsequent stock market gains.


IBM Chief Financial Officer John Joyce has said that the company isn't required by regulators to fill the shortfall in the plan, but that it was in the best interest of shareholders and employees for IBM to do so.


Yeah right John, as I recall a few years back IBM pensioners were alienated big time by the usual IBM tactics trying to screw them over. Nowadays the pensioners follow very closely what's going on with the pension plan, just looking for a reason to rip of your testicles and step on them.

[mjkst27]

"The computer services, hardware and software company said on Dec. 4 that the fund had a shortfall of $3 billion and that it planned to fully fund it in 2002 with contributes of IBM stock, which the fund could later sell if it chose, and cash. "

Wouldn't it be funny if the first thing the pension fund manager did was dump those IBM shares like a sack of shite?

[Jorma]

They should have done it in late Nov when it was getting near 90. On second thought they had to wait till end of year so they knew the exact value. Any depreciation in the stock in Dec would have meant more cash to be infused, I would guess.

Those are not freshly minted stocks are they? I used to think I wasn't a total rube about corporate finance but it took me the longest time to realize that most stocks granted with insider stock option plans were newly issued ones. Many companies minted nearly as many new stocks or more than they retired with stock repurchases.

It should be noted that the stock option expensing issue died a quiet death. Even Easy Al's support didn't mean squat.