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The following tables summarize information about stock options outstanding and exercisable at December 31, 2003: 

<img src='content_image/51810.jpg'>

Shares exercisable at the corresponding weighted-average exercise price at December 31, 2003, 2002, and 2001, were 30.1 million at $41.49, 24.8 million at $45.06, and 24.2 million at $47.78, respectively. 

## 333 NOTE O: PENSION AND OTHER EMPLOYEE BENEFITS 

The Company has pension plans covering the majority of its employ- ees, including certain employees in foreign countries (Pension Benefits). In addition to providing pension benefits, the Company pro- vides certain health care and life insurance benefits to retired employ- ees through other postretirement benefit plans (Other Benefits). 

Substantially all of the Company’s U.S. employees may become eligi- ble for the Other Benefits. The measurement date for the Company’s domestic Pension Benefits and Other Benefits plans is October 31. 

The strategic asset allocation of the Company’s domestic Pension Benefits and Other Benefits plans is diversified with an average and moderate level of risk consisting of investments in equity securities (including domestic and international equities and the Company’s stock), debt securities, real estate, and other areas such as private equity and cash. The Company seeks to produce an active return on investment over the long-term commensurate with levels of investment risk which are prudent and reasonable given the prevailing capital market expectations. Target allocations are 48 to 77 percent for equity securities, 20 to 40 percent for debt securi- ties, 2 to 7 percent for real estate, and 4 to 17 percent for other 

areas. The long-term return on asset assumption for the Company’s domestic Pension Benefits plans for 2004 is 8.75%. The long-term return on asset assumption for the Company’s domestic Pension Benefits plans was 8.75% in 2003 and 9.50% in 2002 and 2001. 

The long-term return on asset assumption for the Company’s domestic Other Benefits plans was 7.75% in 2003 and 8.50% in 2002 and 2001. To develop the expected long-term rate of return on asset assumption, the Company considered the current level of expected returns on risk free investments, the historical level of the risk premium associated with the other asset classes in which the Company has invested domestic Pension Benefits and Other Benefits plan assets, and the expectations for future returns of each asset class. Since the Company’s investment policy is to employ active management strategies in all asset classes, the potential exists to outperform the broader markets, therefore, the expected returns were adjusted upward. The expected return for each asset class was then weighted based on the target asset allocation to develop the long-term return on asset assumption. 

The tables below detail assets by category for the Company’s domestic Pension Benefits and Other Benefits plans. These assets consist primarily of publicly-traded equity securities (including 2,279,000 shares of the Company’s common stock with a fair value of $68 million at December 31, 2003 and 705,000 of the Company’s equity security units, with a fair value of $38 million at December 31, 2003) and publicly-traded fixed income securities. 

## Pension Asset Information 

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## Other Benefits Asset Information 

<img src='content_image/51813.jpg'>

The tables below provide a reconciliation of benefit obligations, plan assets, funded status, and related actuarial assumptions of the Company’s domestic and foreign Pension Benefits and Other Benefits plans. 

