50 51
H O N  I N D U S T R I E S  I n c .  a n d  S U B S I D I A R I E S
  Number of Weighted-Average
  Shares Exercise Price
Outstanding at December 30, 2000  918,250   $ 21.89
Granted    266,500    23.39
Exercised   (17,500)    18.31
Forfeited   (37,000)    21.57
Outstanding at December 29, 2001  1,130,250   $ 22.32
Granted    290,000    25.77
Exercised   –    –
Forfeited   (17,000)    21.69
Outstanding at December 28, 2002  1,403,250     $ 23.03
Granted    446,500     26.78 
Exercised   (362,000)     23.10 
Forfeited   (18,500)     23.57 
Outstanding at January 3, 2004  1,469,250   $ 24.15
Options exercisable at:
 January 3, 2004  202,250   $ 25.47
 December 28, 2002  156,250    25.02
 December 29, 2001  105,000    24.86
The following table summarizes information about fixed stock options 
outstanding at January 3, 2004:
    Options 
  Options Outstanding  Exercisable
   Weighted- Weighted- Number
   Average Average Exercisable
Range of Number Remaining Exercise  at January 3,
Exercise Prices Outstanding Contractual Life Price 2004
$24.50–$28.25 31,000  2.9 years $ 25.71  31,000
 $32.22  20,000  4.1 years $ 32.22  20,000
 $23.47  101,250  5.1 years $ 23.47  101,250
$18.31–$26.69 411,000  6.6 years $ 20.42  50,000
$23.32–$25.27 223,500  7.1 years $ 23.41  –
$25.75–$25.77 261,000  8.1 years $ 25.77  –
$25.50–$42.98 421,500  9.2 years  $ 26.83  –
Retirement Benefits
The Company has defined contribution profit-sharing plans cover-
ing substantially all employees who are not participants in certain 
defined benefit plans. The Company’s annual contribution to the de -
fined contribution plans is based on employee eligible earnings and 
results of operations and amounted to $26,489,000, $23,524,000, 
and $24,826,000 in 2003, 2002, and 2001, respectively.
The Company sponsors defined benefit plans which include 
a limited number of salaried and hourly employees at certain subsidiar-
ies. The Company’s funding policy is generally to contribute annually 
the minimum actuarially computed amount. Net pension costs relating 
to these plans were $176,000; $0; and $0 for 2003, 2002, and 2001, 
respectively. The actuarial present value of obligations, less related plan 
assets at fair value, is not significant.
The Company also participates in a multiemployer plan, 
which provides defined benefits to certain of the Company’s union 
employees. Pension expense for this plan amounted to $309,000, 
$309,000, and $310,000 in 2003, 2002, and 2001, respectively.
Postretirement Health Care
In accordance with the guidelines of revised SFAS No. 132, “Employers’ 
Disclosures about Pensions and other Postretirement Benefits,” the fol-
lowing table sets forth the funded status of the plan, reconciled to the 
accrued postretirement benefits cost recognized in the Company’s bal-
ance sheet at:
(In thousands) 2003 2002 2001 
Change in benefit obligation
 Benefit obligation at beginning 
  of year $ 17,617 $ 17,351 $ 12,229
 Service cost  249  398  278
 Interest cost  1,105  1,091  941
 Benefits paid  (1,206)  (1,356)  (952)
 Actuarial (gain) or loss  566  133  3,042
 Current year prior service cost  –  –  1,813
 Benefit obligation at end of year $ 18,331 $ 17,617 $ 17,351
Change in plan assets
 Fair value at beginning of year $ – $ – $ –
 Employer contributions  11,456  1,356  952
 Benefits paid  (1,206)  (1,356)  (952)
 Fair value at end of year $ 10,250 $ – $ –
Reconciliation of funded status
 Funded status $ (8,081) $ (17,617) $ (17,351)
 Unrecognized actuarial (gain) 
  or loss  1,105  539  364
 Unrecognized transition 
  obligation or (asset)  5,361  5,942  6,523
 Unrecognized prior service cost  1,122  1,352  1,582
 Net amount recognized at 
  year-end  $ (493) $ (9,784) $ (8,882)
Amounts recognized in the 
 statement of financial position 
 consist of:
 Accrued benefit liability  $ (493) $ (9,784) $ (8,882)
 Net amount recognized at 
  year-end, included in 
  Other Liabilities $ (493) $ (9,784) $ (8,882)