question about "core earnings"

[Guest peterkendall]

I am trying to discern what the new "core earnings" standard (being promoted by S&P) means with regard to market losses. An article states, "The S&P will exclude from income any gains from a company's pension plan, asset sales or hedging activity." Other similar references also refers to gains but not "gains & losses." Are losses also excluded or are they considered real costs that must be included because the company has to fund shortfalls with cash?

[MGB]

The pension cost in core earnings is the service cost plus the interest cost. Subtracted from this is the actual return on plan assets, if positive, but no more than the interest cost may be subtracted. Therefore, the cost will never be less than the service cost and never more thant the interest cost plus service cost. All other components of pension cost (including SFAS 88 numbers) from GAAP are completely ignored.

The write-ups you are referring to are talking about "gains" in the context of investment income, not actuarial gains and losses different from assumptions.