International Business Machines Corp. Armonk, N.Y., will see its stockholders' equity reduced by between $10 billion and $11 billion by Dec. 31 as a result of FASB's new pension accounting standard, according to a 10-Q filing. The standard requires companies to put the funded status of their pension and other postretirement benefit plans on the balance sheet. The company's total stockholders' equity was $34.2 billion as of Sept. 30.
The company contributed $1.68 billion to its non-U.S. plans for the first nine months of this year and plans to contribute $1.7 billion to $2 billion total for 2006.
The plan had roughly $48.5 billion in pension assets and $46.4 billion in liabilities as of Dec. 31, 2005, according to an SEC filing.