Plan assets were invested in the following classes of securities (none of which were securities of the company): The expected return on assets is developed in consideration  of the anticipated duration of investment period for assets held  by the plan, the allocation of assets in the plan, and the historical returns for plan assets. Estimated future benefit payments under the plans are as follows (dollars in thousands): In conjunction with the retirement of the former Chairman  of the Board in December 2004, the company entered into an agreement to settle obligations relating to the former Chairman’s (1) Sum of quarters may not equal the total for the year due to changes in the number of shares outstanding during the year. (2) The 2003 fourth quarter included an adjustment to the LIFO provision for inventory, which increased pretax earnings by $0.6 million and net earnings by $0.4 million, or $0.04 per share. pension. As part of this settlement, the company agreed to  make payments aggregating to $7.6 million, which will be funded in part by existing plan assets, in the first quarter of 2005 to  fully settle all pension obligations due to the former Chairman. Contributions to the directors’ plan beyond the funding of the Chairman pension settlement are based upon actual retirement benefits for directors as they retire. These funding requirements are expected to amount to $0.2 million in 2005. Contributions under the union plan are funded in accordance with provisions of The Employee Retirement Income Security  Act of 1974. Expected contributions to be made in 2005 are  $0.3 million. (B) 401K SAVINGS PLANS The company maintains a defined  contribution plan for all employees in the United States other than union employees at the Elgin, Illinois facility, which participates  in a separate plan. The discretionary profit sharing contributions approved relating to the plan years ending 2004, 2003, and 2002 for the profit sharing and 401K plan amounted to $800,000, $750,000 and $600,000, respectively. In conjunction with the freeze on future benefits under the defined benefit plan for union employees at the Elgin, Illinois facility, the company established a 401K savings plan for this group of employees. The company makes contributions to this plan in accordance with its agreement with the union. These contributions amounted to $221,400 in 2004, $157,400 in  2003 and $82,500 in 2002. 35 (14) Quarterly Data (Unaudited) 2004 2004 2003 2003 Union Director Union Director (dollars in thousands) Plan Plans Plan Plans Equity 28% 7% 20% 38% Fixed Income 59 93 56 62 Real Estate 13 — 24 — 100% 100% 100% 100% Union Director Plan Plans 2005 $ 276 $ 7,749 2006 281 — 2007 278 20 2008 273 20 2009 257 20 2010 thru 2014 1,349 300 (dollars in thousands, except per share data) 1st 2nd 3rd 4th Total year 2004 Net sales $ 62,463 $ 72,913 $ 70,620 $ 65,119 $ 271,115 Gross profit 23,176 28,793 26,394 24,265 102,628 Income from operations 10,104 14,653 12,582 920 38,259 Net earnings (loss) $ 5,591 $ 8,289 $ 10,368 $ (660) $ 23,588 Basic earnings per share (1) $ 0.61 $ 0.90 $ 1.12 $ (0.07) $ 2.56 Diluted earnings (loss) per share (1) $ 0.56 $ 0.82 $ 1.03 $ (0.07) $ 2.38 2003 Net sales $ 56,393 $ 65,408 $ 60,894 $ 59,505 $ 242,200 Gross profit (2) 19,052 22,650 22,633 21,518 85,853 Income from operations (2) 6,407 9,644 9,986 8,979 35,016 Net earnings (2) $ 2,609 $ 4,597 $ 5,651 $ 5,841 $ 18,698 Basic earnings per share (1)(2) $ 0.29 $ 0.51 $ 0.63 $ 0.64 $ 2.06 Diluted earnings per share (1)(2) $ 0.28 $ 0.49 $ 0.59 $ 0.60 $ 1.99