Cytec Offers Change in Pension Accounting
Cytec Industries Inc. (NYSE: CYT) announced it has changed its method of accounting for its continuing pension and other postemployment benefit (OPEB) plans to a more preferable method as permitted under generally accepted accounting principles in the United States (GAAP). The new accounting method, referred to as mark-to-market (MTM), was adopted in the second quarter of 2013, and will be retrospectively applied to the Company's financial results for all periods. See the adjusted statements of income on pages 4, 6-10, and 13-17 in the accompanying Schedules providing for the effect of the accounting change on the statements of income for the first quarter of 2013, and for the full year and each quarter of 2012 and 2011, respectively.
Under the newly adopted method of accounting for actuarial gains and losses for its pension and OPEB plans, the Company expects its 2013 pension and OPEB costs to be lower than previously anticipated by approximately $30 million, pre-tax, excluding any potential MTM adjustment.
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