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The amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan. 

## Assumptions 

Weighted average assumptions used to determine benefit obligations at October 31: 

<img src='content_image/17275.jpg'>

Weighted average assumptions used to determine net periodic benefit cost for years ended October 31: 

<img src='content_image/17276.jpg'>

Our rate of return on qualified plansGLYPH<213> assets has averaged 5.4 percent and 9.6 percent per year over the 5-year and 10-year periods ending October 31, 2003 (our measurement date). After that date, we reduced our expected long-term rate of return on plansGLYPH<213> assets to 8.0 percent per year. 

An increase in the cost of covered health care benefits of 6.0 percent was assumed for 2003 and 2004. The rate is assumed to remain at 6.0 percent in the future. The health care cost trend rate assumption may have a significant effect on the amounts reported. 

A one percent change in assumed health care cost trend rates would have the following effects: 

<img src='content_image/17274.jpg'>

## Additional Information 

Our pension plan weighted average asset allocations at October 31, 2003 and 2002 by asset category are as follows: 

<img src='content_image/17292.jpg'>

Our asset allocation strategy for 2004 targets 55 percent in equity securities, 25 percent in debt securities, 5 percent in real estate and 15 percent in other assets. Equity securities include our common stock in amounts substantially less than 0.5 percent of total plan assets at October 31, 2003 and 2002. Other assets includes private equity, mezzanine and distressed debt and timber. Our expected long-term rate of return assumptions as of October 31, 2003 are 8.5 percent, 5.5 percent, 7.0 percent and 10.0 percent for equity securities, debt securities, real estate and other assets, respectively. 

## Contributions 

Given the qualified pension plansGLYPH<213> funded position, we are not required to make any contributions in 2004. In similar situations in the past, we have chosen to make discretionary contributions for various purposes, including minimizing Pension Benefit Guaranty Corporation premium payments and maintaining the fully-funded status of the plans. In 2004, such discretionary contributions could range from $0 to $200 million. We expect to make contributions in the range of $5 million to $15 million to our other postretirement benefit plans in 2004. 

## Estimated Future Benefit Payments 

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: 

<img src='content_image/17277.jpg'>

