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ployee groups. The Company contributes to voluntary employee benefit association (VEBA) trusts to fund certain U.S. retiree health and welfare benefit obligations. The Company uses its fiscal year- end as the measurement date for these plans. 

## Obligations and funded status 

The aggregate change in accumulated postretirement benefit obli- gation, change in plan assets, and funded status were: 

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## Expense 

Components of postretirement benefit expense were: 

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All gains and losses, other than those related to curtailment or special termination benefits, are recognized over the average re- maining service period of active plan participants. During 2002, 

the Company recognized a $16.9 million curtailment gain related to a change in certain retiree health care benefits from employer- provided defined benefit plans to multiemployer defined contribu- tion plans. Net gains from curtailment and special termination benefits recognized in 2001 were recorded as a component of re- structuring charges. Refer to Note 3 for further information. 

## Assumptions 

The weighted average actuarial assumptions used to determine benefit obligations were: 

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The weighted average actuarial assumptions used to determine annual net periodic benefit cost were: 

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The Company determines the overall expected long-term rate of return on VEBA trust assets in the same manner as that described for pension trusts in Note 9. 

The assumed health care cost trend rate is 8.5% for 2004, decreas- ing gradually to 4.5% by the year 2008 and remaining at that level thereafter. These trend rates reflect the Company’s recent historical experience and management’s expectation that future rates will continue to decline. A one-percentage point change in assumed health care cost trend rates would have the following effects: 

<img src='content_image/65851.jpg'>

In December 2003, the Medicare Prescription Drug Improvement and Modernization Act of 2003 (the Act) became law. The Act in- troduces a prescription drug benefit under Medicare Part D, as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. As permitted by FASB FSP 106-1, management has elected to defer recognition of the effects of the Act in ac- counting for and making disclosures for the Company’s postretire- ment benefit plans until authoritative guidance is issued. Refer to Note 1 for further information. 

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