Document qdnJnr3rKYqxJpBeDEQdq84Lx

MAFCO CONSOLIDATED GROUP INC (Form- 10-K, Received: 03/28/1997 00 00:0 . Page 76 of 116 Management believes that reserves as of December 31, 1996 are adequate for all tax liabilities associated with these tax sharing agreements as well as any potential liability asserted by the IRS m accordance with Treasury Regulation 1.1502-06. 10. PENSION PLANS The Company maintains tax qualified defined benefit pension plans covering substantially all hourly and salaried employees in the U.S. and Puerto Rico In addition, certain employees of Abex's former subsidiaries are covered under various tax qualified MC Group retirement plans (the "MC Group Retirement Plan") The fair value of the assets and liabilities of the former Abex plans were recognized in the financial statements of the Company as of June 15,1995 m connection with the Merger Plans covering salaried employees generally provide pension benefits based on years of service and compensation Plans covenng hourly employees and union members generally provide stated F-21 MAFCO CONSOLIDATED GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS benefits for each year of service Plan assets consist primarily of equity and fixed income securities and mutual funds Effective December 31,1995, Consolidated Cigar's tax qualified non-contributory defined benefit pension plans (the "Cigar Plans") covenng substantially all hourly and salaned employees in the U S and Puerto Rico were merged with and into the MC Group Retirement Plan The MC Group Retirement Plan was the surviving plan with all the assets and liabilities of the Cigar Plans becoming assets and liabilities of the surviving MC Group Retirement Plan In addition, certain employees of Abex's former subsidianes are covered under a non-qualified executive defined benefit plan (the "Executive Defined Benefit Plan") and a defined contribution plan (the "Executive Defined Contribution Plan"). Assets of these plans of $27.1 million and $26 1 million at December 31,1996 and 1995, respectively, are held by a rabbi trust and are presented as other assets in the Company's balance sheet because they will be available to general creditors of the Company m the event of the Company's insolvency The liability related to the Executive Defined Contribution Plan was $2.1 million and $2.6 million at December 31,1996 and 1995, respectively, and is mcluded in other liabilities. The following table reconciles the funded status of the Company's significant pension plans as of the date indicated ASSETS EXCEED ACCUMULATED 1996 (IN THOUSANDS DECEMBER 31, ACCUMULATED BENEFITS EXCEED AC http //www.edgarpro com/EFX dll/EDGARpro.dll9FetchFihngHTMLl?ID=969943&Ses... 10/19/2003