4	Benefit Plans

The Company has defined benefit pension plans covering substantially all of its employees in the United States and certain foreign locations. The Company also provides certain postretire-ment healthcare and life insurance benefits to qualifying domestic retirees. Postretirement benefit plans in foreign countries are not material.

     The Company made a $100 million cash contribution to the U.S. pension plan in both 2003 and 2002. The Company made these contributions to offset the impact of the decline in the market value of pension assets during fiscal years 2002 and 2001.

     The change in benefit obligation, change in plan assets, funded status and amounts recognized in the consolidated balance sheets at September 30, 2003 and 2002 for these plans were as follows:

	Pension Plans						Other Postretirement Benefits
		2003			2002			2003			2002
Change in benefit obligation:
Benefit obligation at beginning of year	$	852,922		$	707,392		$	222,374		$	200,011
Service cost		44,798			35,702			3,159			2,609
Interest cost		54,072			49,095			14,484			14,419
Plan amendments		894			4,220			—			—
Benefits paid		(49,891	)		(41,064	)		(15,449	)		(18,497	)
Actuarial loss		129,493			84,547			30,538			23,832
Other, includes translation		26,357			13,030			—			—
Benefit obligation at end of year	$	1,058,645		$	852,922		$	255,106		$	222,374
Change in plan assets:
Fair value of plan assets at beginning of year	$	519,161		$	490,913			—		$	—
Actual return on plan assets		82,973			(50,215	)		—			—
Employer contribution		112,132			110,325			—			—
Benefits paid		(49,891	)		(41,064	)		—			—
Other, includes translation		21,210			9,202			—			—
Fair value of plan assets at end of year	$	685,585		$	519,161			—		$	—
Funded status:
Unfunded benefit obligation	$	(373,060	)	$	(333,761	)	$	(255,106	)	$	(222,374	)
Unrecognized net transition obligation		1,308			1,241			—			—
Unrecognized prior service cost		3,236			2,992			(31,619	)		(37,919	)
Unrecognized net actuarial loss		392,912			307,067			88,297			61,904
Prepaid (accrued) benefit cost	$	24,396		$	(22,461	)	$	(198,428	)	$	(198,389	)
Amounts recognized in the consolidated
balance sheets consisted of:
Prepaid benefit cost	$	13,684		$	13,258		$	—		$	—
Accrued benefit liability		(132,220	)		(168,907	)		(198,428	)		(198,389	)
Intangible asset		3,156			2,918			—			—
Accumulated other comprehensive income
before income taxes		139,776			130,270			—			—
Net amount recognized	$	24,396		$	(22,461	)	$	(198,428	)	$	(198,389	)

     Foreign pension plan assets at fair value included in the preceding table were $169,473 and $134,300 at September 30, 2003 and 2002, respectively. The foreign pension plan projected benefit obligations were $232,560 and $189,066 at September 30, 2003 and 2002, respectively.

     Net pension and postretirement expense included the following components:

	Pension Plans									Other Postretirement Benefits
		2003			2002			2001			2003			2002			2001
Components of net pension and postretirement costs:
Service cost	$	44,798		$	35,702		$	33,121		$	3,159		$	2,609		$	2,418
Interest cost		54,072			49,095			46,344			14,484			14,419			13,841
Expected return on plan assets		(47,190	)		(52,560	)		(58,203	)		—			—			—
Amortization of prior service cost		85			(136	)		(282	)		(6,233	)		(6,233	)		(6,017	)
Amortization of (gain) loss		13,121			3,064			(268	)		3,342			1,626			363
Amortization of net obligation		11			12			22			—			—			—
Net curtailment gain		(147	)		—			—			—			—			—
Net pension and postretirement costs	$	64,750		$	35,177		$	20,734		$	14,752		$	12,421		$	10,605

     Net pension expense attributable to foreign plans included in the preceding table was $13,302, $8,478, and $7,189 in 2003, 2002, and 2001, respectively.

     The assumptions used in determining benefit obligations were as follows:

	Pension Plans						Other Postretirement Benefits
		2003		2002				2003		2002
Discount rate:
U.S. plans		6.25	%		6.75	%		6.25	%		6.75	%
Foreign plans (average)		4.90	%		5.18	%		—			—
Expected return on plan assets(A):
U.S. plans		8.00	%		8.00	%		—			—
Foreign plans (average)		6.72	%		7.15	%		—			—
Rate of compensation increase:
U.S. plans		4.25	%		4.00	%		4.25	%		4.00	%
Foreign plans (average)		2.92	%		3.17	%		—			—

(A) Used in the determination of the subsequent year’s net pension expense.

     At September 30, 2003 the assumed healthcare trend rates were 9% pre and post age 65, decreasing to an ultimate rate of 5% beginning in 2008. At September 30, 2002 the corresponding assumed healthcare trend rates were 10% pre and post age 65 and an ultimate rate of 5% beginning in 2008. A one percentage point increase in assumed healthcare cost trend rates in each year would increase the accumulated postretire-ment benefit obligation as of September 30, 2003 by $11,865 and the aggregate of the service cost and interest cost components of 2003 annual expense by $782. A one percentage point decrease in the assumed healthcare cost trend rates in each year would decrease the accumulated postretirement benefit obligation as of September 30, 2003 by $10,226 and the aggregate of the 2003 service cost and interest cost by $676.

     The Company utilizes a service-based approach in applying the provisions of SFAS No. 112, “Employers’ Accounting For Postemployment Benefits,” for most of its postemployment benefits. Such an approach recognizes that actuarial gains and losses may result from experience that differs from baseline assumptions. Postemployment benefit costs were $13,974, $13,599, and $15,107 in 2003, 2002, and 2001, respectively.