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The following table sets forth the aggregate change in plan assets: 

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Pension plan assets are comprised of a diversified mix of assets including corporate equities, government securities and corporate debt securities. Other retiree assets are comprised of Company stock, net of Series B ESOP debt, of $2,243 and $1,335, as of June 30, 2002 and 2001, respectively. 

The accrued pension and other retiree benefit costs recognized in the accompanying Consolidated Balance Sheet are computed as follows: 

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The underfunding of pension benefits primarily is a function of the different funding incentives that exist outside of the U.S. In certain countries where the Company has major operations, there are no legal requirements or financial incentives provided to companies for pension fund contributions. In these instances, the associated pension liabilities are typically financed directly from the Company’s cash as they become due, rather than via the creation of a separate pension fund. Both the benefit and the financing costs have been reflected in net earnings. 

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $1,718, $1,385 and $276, respectively, as of June 30, 2002, and $1,414, $1,124 and $230, respectively, as of June 30, 2001. 

The Company evaluates its actuarial assumptions on an annual basis. These assumptions are revised based on an evaluation of long-term trends and market conditions that may have an impact on the cost of providing retirement benefits. 

Assumptions, which are reflected on a weighted average basis of individual country plans, for the postretirement benefit calculations are as follows: Years Ended June 30 

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$^{(1) }$Five year trend rate assumption was adjusted in 2002 to reflect market trends. Rate is assumed to decrease to 5.0% by 2009 and remain at that level thereafter. Rate is applied to current plan costs net of Medicare; estimated initial rate for “gross eligible  charges” (charges inclusive of Medicare) is 9.1% for 2002 and 8.0% for 2001. 

