Nortel Networks says it understated its Canadian and American pension costs by US$104 million over several years.
The Toronto-based firm identified certain errors primarily through discussions with its North American pension and post-retirement plan actuaries.
Nortel will restate its financial results for 2004, 2005 and the first nine months of 2006, and will make adjustments to periods prior to 2004.
As a result of the previously announced pension plan changes, third-party actuarial firms retained by the company performed re-measurements of the U.S. and Canadian pension and post-retirement plans in the third quarter of 2006, at which time one of these firms discovered potential errors—generally originating in the late 1990s—in the historical actuarial calculations they had originally performed on the U.S. pension plan assets.
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