The discount rate used to value the projected benefit obligation was 6.25% for fiscal year 2007. SFAS No. 87 “Employers’ Accounting for Pensions” generally requires that the discount rate used in the liability measurement reflect the economic environment in which the liability can be settled as of the measurement date. The discount rates were based on Citigroup Pension Discount Curve, which has become an industry benchmark. Higher funding levels, improved investment returns and the freezing of pension benefits helped to reduce the minimum liability compared to the prior year.

Plan assets are primarily invested in marketable equity securities, corporate and government debt securities and are administered by an investment management company. The plans’ long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the published historical returns for those types of asset categories, taking into consideration inflation rate forecasts. The compensation increase assumption is based upon historical patterns of salary increases and management’s expectation of future salary increases for plan participants. The expected Company contribution to the plan in fiscal year 2008 is $2,877.

The actual allocations as of the fiscal years ended and target allocation for plan assets are as follows:

Expected payments for the pension benefits are as follows:

Net amounts recognized as of the end of each fiscal year are as follows:

Non-Qualified Supplemental Retirement Plan for Certain Key Employees

In fiscal year 1991, the Company adopted a non-qualified supplemental retirement plan for certain key employees. Benefits provided under the plan are equal to 60% of the employee’s final average earnings, less amounts provided by the Company’s defined benefit pension plan and amounts available through Social Security. Effective January 1, 1991 the Company adopted a deferred compensation savings plan for certain key employees. Under this arrangement, selected employees contribute a portion of their annual compensation to the plan. The Company contributes an amount to each participant’s account by computing an investment return equal to Moody’s Average Seasoned Bond Rate plus 2%. Employees receive vested amounts upon death, termination or attainment of retirement age. Total benefit expense recorded under these plans for fiscal years 2007, 2006, and 2005 was $0, $0, and $9, respectively. Benefits payable related to these plans and included in other non-current liabilities in the accompanying financial statements were $3,692 and $3,929 at November 2, 2007 and November 3, 2006, respectively. In connection with this arrangement the Company is the beneficiary of life insurance policies on the lives of certain key employees. The aggregate cash surrender value of these policies, included in non-current assets, was $11,181 and $10,561 at November 2, 2007 and November 3, 2006, respectively.