FSA: reading 24, page 254: q4 and q9: pension expense and NI adjustment

about pension expense, contribution and NI adjustment. does Q4 and Q9 in nature the same? Q4 adjust NI by the amount (difference between economic pension expense and periodic expense)*(1-tax) down for Q9, looks like this is how to get CFO from NI, so add net periodic benefit cost back and deduct contribution, why net periodic benefit cost is treated as non-expense item? Thanks.

They are asking different things but kind of similar. #4, you are just adjusting NI to better reflect economic reality because the economic pension expense is greater than the reported net periodic cost. #9 you reported 1050 (owe this), but only actually paid out the door contributions of 526, so the difference of 524 is kind of like borrowing money, so we don’t add back the whole 1050, but in fact much less than that. You always add back non-cash expenses to NI in order to get to cash flow, it’s just a matter of how much you would add back. Correct me if I’m wrong or let me know if that helps.