Notes to Consolidated Financial Statements
    
N O T E  1 1  -  P e n s i o n  P l a n s
The Company has qualified defined benefit plans covering substantially all of its employees. The benefits are based on years of service and the employee's compensation at the time of retirement, or years of service and a benefit multiplier. The Company funds its pension plans based on allowable federal income tax deductions. Contributions are intended to provide not only for benefits attributed to service to date but also for benefits expected to be earned in the future. The Company also has two non-qualified plans that provide benefits in addition to those provided in the qualified plans.

Pension fund assets are invested in a broadly diversified portfolio consisting primarily of publicly-traded common stocks and fixed income securities.

The following sets forth the reconciliation of the benefit obligations and plan assets and the funded status for all Company pension plans:

(Dollars in thousands)
2000
1999
Change in Benefit Obligation
   Benefit obligation at beginning of year
$
403,831 
$
435,305 
         
   Service cost
12,203 
11,778 
   Interest cost
29,469 
29,587
   Early retirement window
4,064 
- 
   Amendments
(88)
- 
   Actuarial (gain) loss
13,258 
(24,227)
   Benefits paid
(51,517)
(48,612)
   Benefit obligation at end of year
$
411,220 
$
403,831 
         
Change in Plan Assets
   Fair value of plan assets at beginning of year
$
484,946 
$
447,440 
         
   Actual return on plan assets
56,974 
78,795 
   Participants' contributions
870 
2,331 
   Employer contributions
2,912 
4,992 
   Benefits paid
(51,517)
(48,612)
   Fair value oplan assets at end of year
$
494,185 
$
484,946 
         
   Funded status
$
82,965 
$
81,115 
   Unrecognized net actuarial loss
8,682 
728 
   Unrecognized prior service cost
4,938 
7,942 
   Minimum pension liability
(2,309)
(1,674)
   Prepaid pension expense shown in balance sheet
$
94,276 
$
88,111 
         
Minimum pension liability:
   Intangible asset
$
745 
$
976 
   Deferred income tax benefit
630 
281 
   Accumulated other comprehensive losses
934 
417 
      Total
$
2,309 
$
1,674 

Net periodic benefit (income) cost includes the following components:

(Dollars in thousands)
2000
1999
1998
Service cost of benefits earned
$
12,203 
$
11,778 
$
10,291 
Interest cost on projected benefit obligation
29,469 
29,587
29,017 
Expected return on plan assets
(52,773)
(51,987)
(41,265)
Amortization of prior service costs
2,348 
2,358 
2,322 
Amortization of transition asset
- 
- 
(120)
Curtailment loss
568 
- 
- 
Amortization of net loss from prior periods
232 
160 
238 
Cost of early retirement window
4,064 
- 
237 
Net periodic benefit (income) cost
$
(3,889)
$
(8,104)
$
720 

The weighted average discount rates used in determining the actuarial present value of the projected benefit obligation were 7.5% for 2000 and 1999 and 7.0% for 1998. The rate of increase for future compensation levels used in determining the obligation was 5.0% for 2000, 1999 and 1998. The expected long-term rate of return on plan assets in 2000, 1999 and 1998 was 10.5%.

The Company's two non-qualified plans have no plan assets. The total unfunded projected benefit obligations of these two plans were $21,477, $18,406, and $22,099 at the respective 2000, 1999 and 1998 year-ends. The related accumulated benefit obligations were $17,808, $14,857, and $16,947 at the same respective year-ends.