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The funded status of pension plans included above with accumu- lated benefit obligations in excess of plan assets at December 31 is as follows: 

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The Company expects to contribute a total of $20 million to $25 million into all of its pension plans during 2005. The Company’s net periodic pension benefit cost was $16.7 million in 2004, $23.2 million in 2003 and $6.8 million in 2002. See table below for a breakout between U.S. and non-U.S. plans. 

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The Company’s weighted-average assumptions used to determine the benefit obligations for our defined benefit pension and other post retire- ment plans as of December 31, 2004 and 2003 were as follows: 

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The Company’s weighted-average assumptions used to determine the net periodic benefit cost (income) for our defined benefit pension and other post retirement benefit plans for the three years ended December 31, 2004 were as follows: 

The weighted average asset allocations of the Company’s funded pen- sion plans at December 31, 2004 and 2003, and target allocations by asset category, are as follows: 

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The Company’s investment strategy is to maintain actual asset weight- ings within a preset range of target allocations. The Company believes these ranges represent an appropriate risk profile for the planned benefit payments of the plans based on the timing of the estimated benefit payments. Within each asset category, separate portfolios are maintained for additional diversification. Investment managers are retained within each asset category to manage each portfolio against its benchmark. Each investment manager has appropriate investment guidelines. In addition, the entire portfolio is evaluated against a rel- evant peer group. The pension plans did not hold any Company securi- ties as investments as of December 31, 2004 and 2003. 

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The return on assets assumption was developed through analysis of historical market returns, current market conditions, target allo- cations among asset classes and past experience. Overall, it was projected that the U.S. funds could achieve an 8.75% net return over time, based upon the targeted asset allocation. This assumes no benefit from manager selection strategies. 

The estimated future benefit payments for the pension and other post retirement benefits are as follows: 

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The weighted-average rate of increase in the per capita cost of cov- ered health care benefits is projected to be 8.0% in 2005 decreasing to 4.5% by the year 2009. A one-percentage point change in the assumed health care cost trend would have the following effects: 

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The following table summarizes information about stock options outstanding at December 31, 2004: 

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The weighted average fair value at date of grant for options granted during 2004, 2003, and 2002 were $16.28, $11.91, and $10.13, respectively, and were estimated using the Black-Scholes options pricing model with the following weighted average assumptions: 

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## NOTE 9 

## STOCK INCENTIVE PLANS 

Under the Company’s 1993 Stock Incentive Plan, the Company granted options to purchase shares of the Company’s common stock at the fair market value on the date of grant. The options vest over periods up to three years and have a term of ten years from date of grant. As of December 31, 2003, there were no options available for future grants under the 1993 plan. The 1993 plan expired at the end of 2003 and was replaced by the Company’s 2004 Stock Incentive Plan. Under the 2004 Stock Incentive Plan, the numbers of shares available for grant are 2,700,000. As of December 31, 2004, there are 2,990,205 outstanding options under the 1993 and 2004 Stock Incentive Plans. On July 28, 2004, the Company issued a total of 6,400 restricted shares of common stock to its non-employee directors under the 2004 Stock Incentive Plan. 

The Company accounts for stock options in accordance with APB Opinion No. 25, “Accounting for Stock Issued to Employees.” Accordingly, no compensation cost has been recognized for fixed stock options because the exercise price of the stock options exceeded or equaled the market value of the Company’s common stock at the date of grant, which is the measurement date. 

A summary of the plan’s shares under option at December 31, 2004, 2003 and 2002 follows: 

Executive Stock Performance Plan The Company has an Executive Stock Performance Plan that provides payouts to members of senior management at the end of successive three-year periods based on the Company’s performance in terms of total stockholder return relative to a peer group of automotive companies. Payouts earned are payable 40% in cash and 60% in the Company’s common stock. For the three-year measurement periods ended December 31, 2004, 2003 and 2002, the amounts expensed under the plan and the related share issuances were as follows: 

