For the first time, companies would be required to reveal in their financial statements a breakdown of plan assets by category, such as equity, debt and, real estate. Companies will also have to include expected rates of return and target allocation percentages, or target ranges, for these asset categories.

Cash flows would include projections of future benefit payments and an estimate of contributions to be made in the next year to fund the pension and other postretirement benefit plans.

In addition to expanded annual disclosures, companies would be required to report the various elements of pension and other benefit costs on a quarterly basis.

The proposed guidance would be effective for fiscal years ending after December 15, 2003, and for the first fiscal quarter of the year following initial application of the annual disclosure requirements.

Jury Award Against Symbol Technologies
Symbol Technologies Inc., which is embroiled in an accounting scandal, suffered another setback on Wednesday.

The bar-code company announced in a press release that a jury awarded about $218 million in damages to Smart Media of Delaware Inc. and one of its shareholders against Telxon Corp., a wholly owned subsidiary of Symbol.

In 1999, according to Symbol, Smart Media and several principals filed claims against Telxon alleging that after discussions between the two companies, Telxon did not form a business alliance with Smart Media or provide financial support to develop the "Smart Handle" product, resulting in financial losses for Smart Media. In 2000, Telxon was acquired by Symbol through a merger of Telxon with one of Symbol's wholly owned subsidiaries.

"We are, of course, disappointed that the jury did not confirm that a business agreement did not exist between Telxon and Smart Media," said Walter Siegel, Telxon vice president, in a statement. "We believe there is a basis for overturning and, if necessary, appealing the verdict, and will be exploring our options in this matter."

Short Takes

• The board of AOL Time Warner — formed in 2001 when America Online, the leading Internet company, purchased Time Warner, owner of Time magazine, CNN, and Warner Bros., voted Thursday to drop "AOL" from its name, according to wire service reports. Within the next few weeks, its stock will once again trade under Time Warner's old "TWX" symbol on the New York Stock Exchange.
  
  

• NYSE board member H. Carl McCall — the interim leader of the exchange after the resignation under fire of Richard Grasso — said that a special committee reviewing the exchange's governance will consider splitting the roles of chairman and chief executive, according to Reuters. One other reason for the proposed split, reported the wire service, is that "a number of possible candidates said they were not interested in the job."

• Microsoft Corp., the company will add two seats to its eight-member board of directors. One of the two new members is Charles Noski, formerly a senior executive vice president and chief financial officer of AT&T. He was named vice chairman of AT&T's board in 2002 before retiring later that year. Noski will also serve on the Microsoft board's audit committee.
  
  

• EchoStar Communications Corp. said it will issue $1.5 billion of bonds and use the proceeds to repurchase existing debt. Investors reacted by bidding up its shares as much as 6 percent.
  
  

• Northrop Grumman Corp. has announce that it will terminate its shareholder rights plan on December 31.
  
  

• The Conference Board's Index of Leading Economic Indicators increased by 0.4 percent in August, the fourth straight monthly rise. The July figure was revised upward to 0.6 percent. "The economy is improving, although the road will likely remain bumpy," said Conference Board economist Ken Goldstein, in a statement.
  
  

• Only 28 percent of corporate real estate executives at large companies plan to transfer higher-level or service functions overseas in the next 12 months, according to a recent study conducted by CoreNet Global, a trade association for corporate real estate professionals.
  
  

Of those who planned overseas transfers, 53 percent reported that they would reduce their U.S.-based workforce by less than 5 percent, and 34 percent stated that the moves would have no effect on American jobs. The most frequently mentioned functions that might be moved overseas include call centers, engineering, and accounting.

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