content_image/117222.jpg content_image/117223.jpg content_image/117221.jpg content_image/117224.jpg
The assumptions used as of December 31, 2000, 1999 and 1998 in determining pension cost and liability shown above were as follows: 

<img src='content_image/117222.jpg'>

For measurement purposes, a 2.5% annual rate of increase in the per capita cost of covered pension benefits was assumed for 2000 and 1999. 

The components of net periodic pension benefit cost for the years ended December 31, 2000, 1999 and 1998 were as follows (in thousands): 

<img src='content_image/117223.jpg'>

EMCOR contributes to various union pension funds based upon wages paid to union employees of EMCOR. Such contributions approximated $88.9 million, $71.1 million and $57.4 million for the years ended December 31, 2000, 1999 and 1998, respectively. 

EMCOR has a defined contribution retirement plan that covers its U.S. non-union eligible employees. Contributions to this plan are based on a percentage of the employee’s base compensation. The expense recognized for the years ended December 31, 2000, 1999 and 1998, for the defined contribution plan was $2.9 million, $2.2 million and $1.9 million, respectively. 

## Note K – Commitments and Contingencies 

EMCOR and its subsidiaries lease land, buildings and equipment under various leases. The leases frequently include renewal options and require EMCOR to pay for utilities, taxes, insurance and maintenance expenses. 

Future minimum payments, by year and in the aggregate, under capital leases, non-cancelable operating leases and related sub-leases with initial or remaining terms of one or more years at December 31, 2000 were as follows (in thousands): 

<img src='content_image/117221.jpg'>

Rent expense for the years ended December 31, 2000, 1999 and 1998 was $25.4 million, $15.1 million and $12.1 million, respectively. Rent expense for the years ended December 31, 2000, 1999 and 1998 included sublease rental income of $0.6 million, $0.7 million and $0.1 million, respectively. 

EMCOR has employment agreements with certain of its executive officers and management personnel. These agreements generally continue until terminated by the executive or EMCOR and provide for severance benefits if terminated. Certain of the agreements provide the employees with certain additional rights if a change of control (as defined) of EMCOR occurs. 

EMCOR is contingently liable to sureties in respect of performance and payment bonds issued by the sureties in connection with certain contracts entered into by EMCOR’s subsidiaries in the normal course of their business. EMCOR has agreed to indemnify the sureties for any payments made by them in respect of such bonds. 

EMCOR is subject to regulation with respect to the handling of certain materials used in construction which are classified as hazardous or toxic by Federal, State and local agencies. EMCOR’s practice is to avoid participation in projects principally involving the remediation or removal of such materials. However, where remediation is a required part of contract performance, EMCOR believes it complies with all applicable regulations governing the discharge of material into the environment or otherwise relating to the protection of the environment. 

## Note L – Additional Cash Flow Information 

The following presents information about cash paid for interest and income taxes for the years ended December 31, 2000, 1999 and 1998 (in thousands): 

<img src='content_image/117224.jpg'>

