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## Expense 

The components of pension expense were: 

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Certain of the Company’s subsidiaries sponsor 401(k) or similar savings plans for active employees. Expense related to these plans was (in millions): 2003-$26; 2002-$26; 2001-$25. Company con- tributions to these savings plans approximate annual expense. Company contributions to multiemployer and other defined contri- bution pension plans approximate the amount of annual expense presented in the table above. 

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. Net losses from special termination benefits recognized in 2003 are related prima- rily to a plant workforce reduction in Great Britain. Net gains from curtailment and special termination benefits recognized in 2001 were recorded as a component of restructuring charges. Refer to Note 3 for further information. 

## Assumptions 

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

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

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To determine the overall expected long-term rate of return on plan assets, the Company works with third party financial consultants to model expected returns over a 20-year investment horizon with respect to the specific investment mix of its major plans. The return assumptions used reflect a combination of rigorous historical per- formance analysis and forward-looking views of the financial mar- kets including consideration of current yields on long-term bonds, 

price-earnings ratios of the major stock market indices, and long- term inflation. The model currently incorporates a long-term infla- tion assumption of 2.5% and an active management premium of 1% (net of fees) validated by historical analysis. Although man- agement reviews the Company’s expected long-term rates of re- turn annually, the benefit trust investment performance for one particular year does not, by itself, significantly influence this evalu- ation. The expected rates of return are generally not revised, pro- vided these rates continue to fall within a “more likely than not” corridor of between the 25th and 75th percentile of expected long-term returns, as determined by the Company’s modeling process. The current expected rate of return of 9.3% presently equates to approximately the 50th percentile expectation. Any fu- ture variance between the expected and actual rates of return on plan assets is recognized in the calculated value of plan assets over a five-year period and once recognized, experience gains and losses are amortized using a declining-balance method over the average remaining service period of active plan participants. 

## Plan assets 

The Company’s year-end pension plan weighted-average asset al- locations by asset category were: 

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The Company’s investment strategy for its major defined benefit plans is to maintain a diversified portfolio of asset classes with the primary goal of meeting long-term cash requirements as they be- come due. Assets are invested in a prudent manner to maintain the security of funds while maximizing returns within the Company’s guidelines. The current weighted-average target asset allocation reflected by this strategy is: equity securities-78.2%; debt securities-21.1%; other-.7%. Investment in Company com- mon stock represented 1.7% and 2.0% of consolidated plan as- sets at December 27, 2003 and December 28, 2002, respectively. Plan funding strategies are influenced by tax regulations. The Company currently expects to contribute approximately $83 mil- lion to its defined benefit pension plans during 2004. 

## Note 10 Nonpension postretirement and postemployment benefits 

## Postretirement 

The Company sponsors a number of plans to provide health care and other welfare benefits to retired employees in the United States and Canada, who have met certain age and service require- ments. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a few multiemployer or other defined contribution plans for certain em- 

