Document ymDeYpgLeJxLvmmgzD17p79nd

MAFCO CONSOLIDATED GROUP INC (Form 10-K, Received 03/28/1997 00 00:0.. Page 77 of 116 Actuarial present value of benefit obligation: Accumulated benefit obligation includes vested benefits of $127,258 and $27,874 m 1996 and $127,847 and $28,527 in 1995 BENEFITS $ 127,834 Projected benefit obligation for service rendered to date Less: plan assets at fair value 133,095 (202,211) Projected benefit obligation in excess of (less than) plan assets Unrecognized transition asset (obligation) Unrecognized prior service benefit (cost) Unrecognized net (loss) gain Adjustment for minimum liability (69,116) 62 219 6,080 - Net pension (asset) liability $ (62,755) ASSETS $ 27,938 28,259 28,259 (541) 404 198 $ 28,320 Pension liabilities are included m accrued expenses and other liabilities. F-22 MAFCO CONSOLIDATED GROUP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The weighted-average discount rate used in determining the actuarial present value of the projected benefit obligation was 7 1/4% m 1996 and 7 l/4%-7 1/2% m 1995 The rate of increase m future compensation levels reflected m such determination was 4 1/2% in 1996 and 4%-5% m 1995. The assumed long-term rate of return on assets was 8-9% for 1996, 6 l/2%-9% for 1995 and 7%-8 1/4% for 1994 The Company's funding policy is to contribute annually an amount necessary to satisfy the Internal Revenue Service's minimum funding standards. Pension (income) expense includes the following components for the years ended December 31,1996, 1995 and 1994 respectively. Service cost-benefits earned during the period Interest cost on projected benefit obligation Actual return on plan assets Net amortization and deferrals 1996 (in thousands) 1995 1994 $ 1,047 12,525 (31,945) 14,548 $ 800 7, 416 (20, 732) 11, 594 $ 893 2,194 (827 (685 httn://www edearoro com/EFX dll/EDGARpro dlUFetchFihngHTMLl?ID=969943&Ses .. 10/19/2003