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The number of preferred shares outstanding were: 

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As permitted by American Institute of Certified Public Accountants (AICPA) Statement of Position 93-6, “Employers’ Accounting for Employee Stock Ownership Plans,” the Company has elected, where applicable, to continue its practices, which are based on Statement of Position 76-3, “Accounting Practices for Certain Employee Stock Ownership Plans.” ESOP debt which is guaranteed by the Company is recorded in short- and long-term liabilities (see Note 6). Preferred shares issued to the ESOP are offset by the reserve for ESOP debt retirement in the Consolidated Balance Sheet and the Consolidated Statement of Shareholders’ Equity. Interest incurred on the ESOP debt is recorded as interest expense. Dividends on all preferred shares, net of related tax benefits, are charged to retained earnings. 

The preferred shares held by the ESOP are considered outstanding from inception for purposes of calculating diluted net earnings per common share. Diluted net earnings are calculated assuming that all preferred shares are converted to common, and therefore are adjusted to reflect the incremental ESOP funding that would be required due to the difference in dividend rate between preferred and common shares (see Note 8). 

## Note 10 Postretirement Benefits 

The Company offers various postretirement benefits to its employees. 

## Defined Contribution Retirement Plans 

The most significant employee benefit plan offered is the defined contribution plan in the United States, which is fully funded. 

Under the defined contribution profit sharing plan, annual credits to participants’ accounts are based on individual base salaries and years of service and do not exceed 15% of total participants’ annual salaries and wages. The fair value of the ESOP Series A shares serves to reduce the Company’s cash contribution required to fund the profit sharing 

plan contributions earned. Under SOP 76-3, shares of the ESOP are allocated at original cost based on debt service requirements, net of advances made by the Company to the trust. The defined contribution expense pursuant to this plan was $279, $303 and $89 in 2002, 2001 and 2000, respectively. 

## Other Retiree Benefits 

The Company also provides certain health care and life insurance benefits for substantially all U.S. employees who become eligible for these benefits when they meet minimum age and service requirements. Generally, the health care plans require contributions from retirees and pay a stated percentage of expenses, reduced by deductibles and other coverages. Retiree contributions change annually in line with health care cost trends. These benefits primarily are funded by ESOP Series B shares as well as certain other assets contributed by the Company. 

Certain other employees, primarily outside the U.S., are covered by local defined benefit pension, health care and life insurance plans. 

The following table sets forth the aggregate change in benefit obligation for the Company‘s defined benefit plans: 

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