supplemental pension plan provides for incremental pension payments from the Corporation’s funds so that total pension payments equal amounts that would have been payable from the Corporation’s principal pension plans, were it not for limitations imposed by income tax regula- tions. The plans provide defined benefits based on years of service and final average salary. The Corporation uses December 31 as the measurement date for its plans. The following table reconciles the projected benefit obliga- tion and the fair value of plan assets and shows the funded status of the pension plans: Amounts recognized in the consolidated balance sheet at December 31 consist of the following: *Amount included in other comprehensive income after income taxes was $73 million at December 31, 2003 and $72 million at December 31, 2002. The accumulated benefit obligation for the funded defined benefit pension plans was $733 million at December 31, 2003 and $639 million at December 31, 2002. The accumu- lated benefit obligation for the unfunded defined benefit pension plan was $53 million at December 31, 2003 and $44 million at December 31, 2002. All pension plans had accumulated benefit obligations in excess of plan assets at December 31, 2003 and 2002. Components of funded and unfunded pension expense consisted of the following: *The trust established by the Corporation to fund the supplemental plan held assets valued at $40 million at December 31, 2003 and $26 million at December 31, 2002. 49 Funded Unfunded Pension BeneGLYPH<222>ts Pension BeneGLYPH<222>ts Millions of dollars 2003 2002 2003 2002 Reconciliation of projected  benefit obligation Balance at January 1 $ 721 $ 623 $61 $59 Service cost 24 23 3 2 Interest cost 47 44 4 4 Amendments GLYPH<209> GLYPH<209> GLYPH<209> 4 Actuarial loss 57 60 3 1 Benefit payments (32) (29) (6) (9) Balance at  December 31 817 721 65 61 Reconciliation of fair value  of plan assets Balance at January 1 487 495 GLYPH<209> GLYPH<209> Actual return on  plan assets 104 (42) GLYPH<209> GLYPH<209> Employer contributions 67 63 6 9 Benefit payments (32) (29) (6) (9) Balance at December 31 626 487 GLYPH<209> GLYPH<209> Funded status  (plan assets less than  benefit obligations) (191) (234) (65)* (61)* Unrecognized net  actuarial loss 190 214 18 15 Unrecognized prior  service cost 3 5 3 3 Net amount  recognized $ 2 $ (15) $(44) $(43) Funded Unfunded Pension BeneGLYPH<222>ts Pension BeneGLYPH<222>ts Millions of dollars 2003 2002 2003 2002 Accrued benefit liability $(106) $(130) $(53) $(44) Intangible assets 3 5 3 1 Accumulated other  comprehensive  income* 105 110 6 GLYPH<209> Net amount recognized $ 2 $ (15) $(44) $(43) Millions of dollars 2003 2002 2001 Service cost $27 $2 5 $2 1 Interest cost 51 49 45 Expected return on plan assets (44) (44) (48) Amortization of prior service cost 2 2 3 Amortization of net loss 19 5 1 Net periodic benefit cost $55 $3 7 $2 2 Increase in minimum  liability included in other  comprehensive income $1 $110 $ GLYPH<209>