Fitzer, Inc. reported the following data in its 1999 income statement (dollars in millions):

Income before cumulative effect of accounting changes $1,093.5 Cumulative effect of change in accounting for postretirement benefits, net of income taxes (312.6)

Income taxes 30.0 Net income $810.9 Fitzer’s notes include the following explanations:

In the fourth quarter of 1999, the Company adopted the provisions of SFAS No. 106, Employer’s Accounting for Postretirement Benefits Other Than Pensions. This statement requires the accrual of the projected future cost of providing postretirement benefits during the period that employees render the services necessary to be eligible for such benefits. In prior years, the expenses were recognized when claims were paid.

The Company elected to immediately recognize the accumulated benefit obligation, measured as of January 1, 1999, and recorded a one-time pretax charge of $520.5 million ($312.6 million after taxes, or $0.93 per share) as the cumulative effect of this accounting change.