EXHIBIT 14-16 Components of Expense (Income)

 

Yew Ended 31 December

 

2008

2007

2006

Components of expense/(income)

 

 

 

Service cost

$908

$910

$831

Interest cost

2,497

2,457

2,378

Expected return on plan assets

(3,455)

(3,515)

(3,378)

Amortization of prior service costs

188

185

180

Recognized net actuarial loss/(gain)

912

1,266

440

Net periodic benefit coat

$1,050

$I,303

$451

EXHIBIT 14-17 Funded Status of Plan

At 31 December ($ millions)

2008

2007

Change in benefit obligation

 

 

Beginning balance

$45,183

$42,781

Service cost

908

910

Interest cost

2,497

2,457

Plan participants” contributions

9

12

Amendments

156

270

Actuarial (gain)/losses

(925)

2,778

Settlement/curtailment/acquisitions/dispositions, net

85

(1,774)

Benefit paid

(2,331)

(2,251)

Ending balance

$45,582

$45,183

Change in plan assets

 

 

Beginning at fair value

$43,484

$38,977

Actual return on plan assets

4,239

5,460

Company contribution

526

2,604

Plan participants” contributions

9

12

Settlement/curtailment/acquisitions/dispositions, net

216

(1,393)

Benefit paid

(2,286)

(2,208)

Exchange rate adjustment.(

15

32

Ending balance at fair value

$46,203

$43,484

EXHIBIT 14-18 Volatility Assumptions Used to Value Stock Option Grants

Grant year

Weighted average expected volatility

2008 valuation

 

2004-2008

21.50%

2008 valuation

 

2003-2007

23.00%

Passaic Industries is based in the United States and offers its employees both a defined-benefit pension plan and stock options. Several of the disclosures related to these plans are presented in Exhibits 14-16, 14-17, and 14-18.

Because of the changes in pension plan assets and benefit obligations reported in the Funded Status of Plan reported at 31 December 2007 and 31 December 2008, the 2008 Passaic Industries balance sheet compared to the 2007 balance sheet will show a $2,320 increase in

a. assets.

b. liabilities.

c. shareholders equity.