Potlatch to Take Q4 Non-Cash Charge to Reflect Pension Fund Performance
Press release from the issuing company
SPOKANE, Wash.---Dec. 27, 2002--Potlatch Corporation today announced that it expects to record an estimated pre-tax, non-cash charge of $40 to $60 million in the fourth quarter, related to its defined benefit pension plans.
The charge will require an adjustment to retained earnings, but will not affect operating income and is the result of the sharp decline in the stock market during the year and the lower current interest rate environment, which will require a reduction in the discount rate from 7.25% to 6.75%.
These changes will not materially impact pension contributions or pension expense in 2003.
Potlatch Corporation is an integrated forest products company with 1.5 million acres of timberland in Idaho, Minnesota and Arkansas. Its products include lumber, panels, bleached pulp and paperboard and consumer tissue products.
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