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## NOTES TO FINANCIAL STATEMENTS 

The following tables summarize the pension and postretirement plans’ income and expense, funded status, and actuarial assumptions for the years indicated (thousands of dollars): 

<img src='content_image/64417.jpg'>

For measurement purposes, a 7 percent annual rate of increase in the per capita cost of covered health care benefits was assumed for 2001; the rate was assumed to remain at that level thereafter. 

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The health care cost trend assumption has a significant effect on the postretirement benefit amounts reported. A 1% change in the health care cost trend rates would have the following effects (thousands of dollars): 

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All U.S. associates of the Company may participate in a 401(k) Plan. The Company contributes a fixed percentage of up to the first 6 percent of eligible compensation that a participant contributes to the plan. The Company’s contributions totaled approximately $679,000 in 2001, $679,000 in 2000, and $635,000 in 1999. 

## SHAREHOLDERS’ EQUITY 

The Company has 12,000,000 shares of authorized common stock, par value $.01 per share, with 4,046,089 and 4,452,609 shares issued and outstanding at July 1, 2001, and July 2, 2000, respectively. Holders of Company common stock are entitled to one vote for each share on all matters voted on by shareholders. 

On February 27, 1995, one common stock purchase right (a “right”) was distributed for each share of the Company’s common stock outstanding. The rights are not currently exercisable, but would entitle shareholders to buy one-half of one share of the Company’s common stock at an exercise price of $30 per share if certain events occurred relating to the acquisition or attempted acquisition of 20 percent or more of the outstanding shares. The rights expire in the year 2005, unless redeemed or exchanged by the Company earlier. 

