PAGE 30 Back to Table of Contents Weighted average discount rate Long-term rate of return on plan assets  Increase in compensation 2001 7.25% 9.75% 4.50% 2000 7.75% 9.75% 4.75% 2002 6.75% 9.50% 4.50% Other assets: Prepaid benefit cost Intangible asset  Accrued liabilities Accrued retirement benefits Accumulated other non-owner changes to equity Prepaid (accrued) benefit cost 2001 $ 34,421 — (1,082) (10,280) — $ 23,059 2001 $ —  — (8,594) (52,225) — $ (60,819) 2002 $ —  — (9,042) (49,905) — $^{$}$(58,947) 2002 $  29,996 6,524 (1,082) (36,217) 25,920 $ 25,141 Other Postretirement Benefits Pensions Funded status Adjustments for unrecognized: Net (gains) losses  Prior service costs (benefits) Net asset at transition Prepaid (accrued) benefit cost  2001 $ 42,874 (24,888) 5,365 (292) $ 23,059 2001 $ (72,060) 13,486 (2,245) — $ (60,819) 2002 $ (84,040) 21,981 3,112 — $ (58,947) 2002 $^{$}$(44,532) 62,045 7,742 (114) $ 25,141 Other Postretirement Benefits Pensions Pensions Fair value of plan assets, January 1  Actual return on plan assets Company contributions Plan participants’ contributions Benefits paid  Foreign exchange rate changes  Fair value of plan assets, December 31 Assets related to plans with projected benefit  obligations in excess of plan assets Assets related to plans with accumulated benefit  obligations in excess of plan assets 2001 $^{$}$324,370 (346) 821 138 (16,612) (1,236) $^{$}$307,135 $ 7,705 $ 7,705 2002 $^{$}$307,135 (45,642) 1,836 156 (17,554) 1,368 $^{$}$247,299 $^{$}$224,392 $ 83,795 A reconciliation of the beginning fair value of plan assets to the ending fair value of plan assets follows: A reconciliation of the funded status of the plans with the amounts recognized in the accompanying balance sheets is set forth below: Amounts recognized in the accompanying balance sheets consist of: Pension deferred gains and losses that fall outside of a 10% corridor are amortized over 8.7 years or the remaining average service life of active participants, whichever is shorter. Significant assumptions used in determining pension and other postretirement expense and the funded status of the plans were: BARNES GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS