Pension accounting practices in the U.S. has been recently scrutinized.
In order for Tiffany and Co. to more accurately estimate pension expenses indices such as the Merrill Lynch yields reports are referenced.
Tiffany and Co. also uses what is know as the projected unit credit actuarial method for financial reporting of pension expenses.
This method involves the use of a certified actuary to estimate and attest to the estimated pension expense to be realized by a company, and is regarded to be the most accurate and reliable.