The Company has various pension plans covering
substantially all employees. All major pension plans are funded,
and all but one have accumulated benefit obligations that exceed
plan assets. The following table shows the key information
for the plans with accumulated benefit obligations in excess
of plan assets.
Certain of the pension plans provide that, in the event there
is a change in control of the Company which is not approved
by the Board of Directors and the plans are terminated within
five years thereafter, the assets in the plan first will be
used to provide the level of retirement benefits required by
the Employee Retirement Income Security Act, and then any surplus
will be used to fund a trust to continue present and future
payments under the postretirement medical and life insurance
benefits in the Company’s group insurance benefit programs.
The Company has an agreement with the U.S. Government with
respect to certain of the Company pension plans. Under the
agreement, should the Company terminate any of the plans
under conditions in which the plan’s assets exceed that plan’s obligations,
the U.S. Government will be entitled to a fair allocation of
any of the plan’s assets based on plan contributions that were
reimbursed under U.S. Government contracts. Also, the Revenue
Reconciliation Act of 1990 imposes a 20% nondeductible excise
tax on the gross assets reverted if the Company establishes
a qualified replacement plan or amends the terminating plan
to provide for benefit increases; otherwise, a 50% tax is applied.
Any net amount retained by the Company is treated as taxable
income.
The Company provides certain defined contribution plans
to all eligible employees. The principal plans are the Companysponsored
401(k) plans and a funded plan for unused sick leave. The
provision for these defined contribution plans was $448, $452
and $406
in 2002, 2001, and 2000, respectively.
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