NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31  2003  2002  2001 DECEMBER 31  2003  2002  2001 The following sets forth the pension plan’s funded status  components of pension costs and amounts (in thousands) at the pension plan measurement date of December 31  2003 and September 30  2002: Weighted - Average Assumptions Used to Determine Projected Benefit Obligation as of December 31  2003 and September 30  2002 Weighted - Average Assumptions Used to Determine Net Periodic Benefit Cost as of December 31  2003 and September 30  2002 and 2001 Weighted – Average Assumptions Used to Determine Projected Benefit Obligation as of December 31  2003 and September 30  2002 The Company provides medical and dental benefits to eligible retirees. Currently  retirees are offered the same benefits as active employees after taking Medicare into consideration. The following sets forth the other post-retirement benefits’ funded status  components of net periodic benefit cost (in thousands) at the measurement date of December 31  2003 and September 30  2002:  The pension plan is currently targeting the following asset allocation for 2004: The following table outlines the asset allocation for the pension plan as of December 31: Other Post-Retirement Benefits PENSION BENEFITS 2003 2002 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 426 885)% $ $^{373 434}$)% Service cost 5 189)% $^{5 539}$)% Interest cost 28 089)% $^{27 238}$)% Actuarial loss 26 166)% $^{37 632}$)% Benefits paid (22 535)% $^{(20 518)}$)% Plan change –)% $^{3 560}$)% PROJECTED BENEFIT OBLIGATION AT END OF PERIOD 463 794)% $^{426 885}$)% Change in Plan Assets: Fair value of plan assets at beginning of year 319 113)% $^{339 838}$)% Actual return on plan assets 80 126)% $^{(20 207)}$% Contributions 48 950)% $^{20 000}$)% Benefits paid (22 535)% $^{(20 518)}$% FAIR VALUE OF PLAN ASSETS AT END OF YEAR 425 654)% $^{319 113}$)% Funded Status (38 140)% $^{(107 772)}$% Unrecognized net actuarial loss 120 995)% $^{144 328}$)% Unrecognized prior service cost 2 927)% $^{3 109}$)% PREPAID PENSION COST $ 85 782)% $ $^{39 665}$)% The amounts recognized in the Consolidated Balance Sheet consist of: Prepaid benefit costs $ 85 782)% $ $^{39 665}$)% Additional minimum liability (123 922)% $^{(147 437)}$% $ (38 140)% $ $^{(107 772)}$% 2003 2002 Discount rate 6.50%) 6.75%) Expected return on plan assets 9.00%) 9.00%) PENSION BENEFITS 2003 2002 2001 Components of Net Periodic Benefit Cost: Service cost $ 5 189)% $ $^{5 539}$)% $ $^{5 544}$)% Interest cost 28 089)% $^{27 238}$)% $^{25 758}$)% Expected return on plan assets (35 109)% $^{(34 497)}$% $^{(29 488)}$% Amortization of net loss (gain) 3 910)% $^{–}$)% $^{(847)}$% Amortization of transition obligation –)% $^{–}$)% $^{(1 158)}$% Amortization of prior service cost 317)% $^{326}$)% $^{34}$)% Net periodic pension benefit cost/(income) $ 2 396)% $ $^{(1 394)}$% $ $^{(157)}$% 2003 2002 2001 Discount rate 6.75%) 7.50%) 8.25%) Expected return on plan assets 9.00%) 9.00%) 7.750%) Rate of compensation increase N/A%) N/A%) N/A%) 2003 2002 Discount rate 6.50%) $^{6.75%}$) Expected return on plan assets 9.00%) $^{9.00%}$) 2003 2002 Equity securities 65%) 61%) Debt securities 25%) 29%) Real estate 8%) 10%) Other 2%) –%) Domestic Equity 47.5%) Non-US Equity 10.0%) Fixed Income 22.5%) Real Estate 5.0%) Private Equity 5.0%) Absolute Return 10.0%) P N M R E S O U R C E S • 2 0 0 3 A n n u a l R e p o r t t o S h a r e h o l d e r s 68 69 OTHER BENEFITS 2003 2002 Change in Benefit Obligation: Benefit obligation at beginning of year $ 117 796)% $ $^{109 408}$)% Service cost 3 086)% $^{2 694}$)% Interest cost 7 840)% $^{8 082}$)% Plan participant’s contributions 1 534)% $^{795}$)% Amendments (18 720)% $^{(31 960)}$% Unrecognized actuarial loss 10 187)% $^{32 623}$)% Expected benefit paid (6 911)% $^{(3 846)}$% BENEFIT OBLIGATION AT END OF PERIOD 114 812)% $^{117 796}$)% Change in Plan Assets: Fair value of plan assets at beginning of year 37 387)% $^{40 594}$)% Actual return on plan assets 11 055)% $^{(6 478)}$% Employer contribution 7 892)% $^{6 322}$)% Participant contribution 1 534)% $^{795}$)% Benefits paid (6 911)% $^{(3 846)}$% Fair value of plan assets at end of year 50 957)% $^{37 387}$% Funded Status (63 855)% $^{(80 409)}$% Employer contribution after measurement date –)% $^{1 538}$)% Unrecognized net transition obligation 16 354)% $^{18 171}$)% Unrecognized net actuarial loss 72 987)% $^{74 048}$)% Unrecognized prior service cost (48 087)% $^{(31 960)}$% ACCRUED POST-RETIREMENT COSTS $ (22 601)% $ $^{(18 612)}$%