content_image/102173.jpg content_image/102162.jpg
The Company anticipates that no funding of its Pension Plan will be required in fiscal 2005. 

## COMPONENTS OF NET PERIODIC PENSION EXPENSE: 

<img src='content_image/102173.jpg'>

The following table reflects the expected benefits to be paid from the Pension Plan in each of the next five fiscal years, and in the aggregate for the five years thereafter. 

## Years Ended September 30, 

<img src='content_image/102162.jpg'>

Included in the Pension Plan is an unfunded supplemental executive retirement plan. 

The accumulated benefit obligation for the defined Pension Plan was $75.7 million, $66.1 million and $55.7 million at September 30, 2004, 2003, and 2002, r espectively . 

The Company evaluates the Pension Plan to determine whether any additional minimum liability is required. 

As a result of changes in the interest rates, an adjustment to the minimum pension liability was required. The adjustment to the liability is recorded as a charge to accumulated other comprehensive loss, net of tax, in shareholders’ equity in the consolidated balance sheets. 

## INVESTMENT STRATEGY AND ASSET ALLOCATION 

The Company’s investment policy and strategies ar established with a long-term view in mind. The investment strategy is intended to help pay the cost of the Plan while providing adequate security to meet the benefits promised under the Plan. The Company maintains a diversified asset mix to minimize the risk of a material loss to the portfolio value that might occur from devaluation of any one investment. In determining the appropriate asset mix, the Company’s financial strength and ability to fund potential shortfalls are considered. 

The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the Plans’ investment portfolio after analyzing historical experience and future expectations of the return and volatility of various asset classes. 

