<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
NOTE 12. PENSION PLANS--(CONTINUED)
Supplemental Pension Plan
Effective April 1, 1992, Zapata adopted a supplemental pension plan, which
provides supplemental retirement payments to senior executives of Zapata. The
amounts of such payments will be equal to the difference between the amounts
received under the applicable pension plan, and the amounts that would
otherwise be received if pension plan payments were not reduced as the result
of the limitations upon compensation and benefits imposed by federal law.
Effective December 1994, the supplemental pension plan was terminated.
For 1994, 1993 and 1992 the actuarial present value of the projected benefit
obligations was based on weighted-average annual increase in salary levels of
2.1%, 2.1% and 5.5%, respectively, and discount rates of 7.5%, 7.5% and 8.0%,
respectively.
Net pension expense for 1994, 1993 and 1992 included the following
components:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(IN THOUSANDS)
<S> <C> <C> <C>
Service cost--benefits earned during the year.............. $ 68 $ 86 $28
Interest cost on projected benefit obligations............. 72 53 25
Amortization of prior service cost......................... 487 87 44
---- ---- ---
Net pension expense...................................... $627 $226 $97
==== ==== ===
</TABLE>
No contributions to the plan have been required since the plan is unfunded.
The plan's funded status and amounts recognized in the Company's balance sheet
at September 30, 1994 and 1993 are presented below:
<TABLE>
<CAPTION>
1994 1993
------- -------
(IN THOUSANDS)
<S> <C> <C>
Fair value of plan assets.............................. $ $
Actuarial present value of benefit obligations:
Vested benefits........................................ 935 831
Nonvested benefits..................................... 34
------- -------
Accumulated benefit obligation....................... 935 865
Additional benefits based on projected salary
increases........................................... 90
------- -------
Projected benefit obligation......................... 935 955
------- -------
Excess of projected benefit obligations over plan
assets................................................ (935) (955)
Unrecognized net loss.................................. 154
Unrecognized prior service costs....................... 479
Additional minimum liability........................... (543)
------- -------
Unfunded accrued liability............................. $ (935) $ (865)
======= =======
</TABLE>
NOTE 13. RELATED PARTY TRANSACTIONS
During 1994, Zapata made purchases totalling $7.3 million from a company
owned by a director and shareholder of Zapata. At September 30, 1994, Zapata
owed $663,000 related to these purchases.
Zapata received $317,000, $249,000 and $187,000 in 1994, 1993 and 1992,
respectively, from a director of the Company for use of the Company's executive
aircraft under an arrangement which provided for full recovery of expenses
associated with such use.
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