Notes to Consolidated Financial Statements

9. EMPLOYEE BENEFIT PLANS

The Company has three defined contribution plans covering substantially all domestic employees. Contributions are based on certain percentages of an employee's eligible compensation. Expenses related to these plans were $2.8 million, $3.0 million and $2.5 million in 2001, 2000 and 1999, respectively.

The Company provides postretirement benefits to union employees at two of the Company's divisions. The Company funds these benefits on a pay-as-you-go basis.

In addition, the Company maintains three defined benefit retirement plans for certain employees. Funding policies are based upon local statutes. Each of the three defined benefit retirement plans at March 31, 2001, had benefit obligations in excess of plan assets as shown below. At March 31, 2000, one defined benefit retirement plan had a benefit obligation of $5.2 million and no plan assets. The other two defined benefit plans had a combined benefit obligation of $16.9 million and plan assets of $19.8 million.

(In thousands)

Pension Benefits Postretirement
Benefits
Year Ended March 31, Year Ended March 31,
2001 2000 1999 2001 2000 1999
Components of net
periodic benefit cost:
Service cost		 $  462 $  444 $  402 $   45 $   15 $   2
Interest cost 1,577 1,211 835 176 119 69
Expected return on
plan assets		 (108 ) (1,611 ) (573 ) - - -
Amortization of
net (gain) loss		 (1,359 ) 505 43 19 28 -
Amortization of
prior service cost		 38 - - - - -
Net periodic
benefit cost		 $  610 $  549 $  707 $  240 $  162 $  71
Weighted-average
assumptions as of
March 31 :
Discount rate		 6.58 % 6.67 % 6.00 % 7.13 % 7.88 % 7.00 %
Expected return on
plan assets		 7.87 % 7.59 % 7.00 % - - -
Rate of compensation
increase		 2.68 % 3.13 % 3.25 % - - -

Pension Benefits Postretirement
Benefits
Year Ended March 31, Year Ended March 31,
2001 2000 2001 2000
Change in benefit
obligation:
Benefit obligation at
beginning of year		 $  22,098 $  13,702 $  2,365 $  1,024
Service cost 462 444 45 15
Interest cost 1,577 1,211 175 119
Plan participants'
contributions		 114 131 - -
Effect of acquisitions - 9,108 - 1,122
Amendments 825 - - -
Actuarial gain (loss) 1,271 (341 ) 88 223
Benefits paid (2.082 ) (1,402 ) (152 ) (138)
Effect of foreign
exchange		 (1.284 ) (755 ) - -
Benefit obligation at
end of year		 $  22,981 $  22,098 $  2,521 $  2,365

Pension Benefits Postretirement
Benefits
Year Ended March 31, Year Ended March 31,
2001 2000 2001 2000
Change in plan assets:
Fair value of plan assets
at beginning of year		 $  19,752 $   7,565 $ - $ -
Effect of acquisitions - 11,725 - -
Actual return
on plan assets		 (1,298 ) 1,069 - -
Employer contribution 275 352 152 138
Plan participants'
contributions		 114 131 - -
Benefits paid (1,705 ) (978 ) (152 ) (138 )
Effect of foreign
exchange		 (915 ) (112 ) - -
Fair value of plan assets
at end of year		 $  16,223 $  19,752 $ - $ -

Pension Benefits Postretirement
Benefits
Year Ended March 31, Year Ended March 31,
2001 2000 2001 2000
Reconciliation of
funded status:
Funded status		 $(6,758 ) $(2,346 ) $(2,521 ) $(2,365 )
Unrecognized actuarial
loss (gain)		 1,868 (2,440 ) 326 258
Unrecognized prior
service cost		 1,037 516 - -
Accrued liability $(3,853 ) $(4,270 ) $(2,195 ) $(2,107 )


For measurement purposes, a 7.53% and 9.57% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2001 and 2000, respectively. The rate was assumed to decrease gradually to 4.61% by 2009 and remain at that level thereafter. Under the Plan, the actuarially determined effect of a one-percentage point change in the assumed health case cost trend would have the following effects.

One
Percentage
Point
Increase		 One
Percentage
Point
Decrease
Effect on total of service
and interest cost components		 $ 31 $ (25 )
Effect on accumulated
postretirement benefit obligation		 241 (252 )