DSquaredSlim

Here is what they are not saying in their explanation...or at least I didn't get it the first time. Yes, interest cost will decrease because of the lower DR, and that will reduce P.E., and yes DBO will increase, and that has nothing to do with earnings. However, the decreased DR will *increase* the current service cost in the P.E. formula, which increases P.E. and lowers NI. Oh, boy.