NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (thousands of dollars unless otherwise indicated) Domestic Defined Benefit Pension Plans Foreign Defined Benefit Pension Plans 2004 2003 2002 2004 2003 2002 Accumulated benefit obligation at end of year ..................................... $ 230,912 $218,804 $186,980 $ 36,437 $ 32,323 $ 23,295 Projected benefit obligation: Balance at beginning of year............... $ 224,265 $190,711 $186,174 $ 40,182 $ 30,089 $ 17,674 Service cost ......................................... 10,992 7,036 4,214 1,520 1,358 968 Interest cost......................................... 12,777 12,066 12,016 2,354 1,959 1,383 Actuarial loss (gain) ............................ (2,295) 30,276 218 5,123 (368) 8,313 Plan amendments, merger and other ... 18,026 1,206 487 4,646 235 Effect of foreign exchange................... 3,074 3,373 1,838 Benefits paid ....................................... (17,126) (15,824) (13,117) (866) (875) (322) Balance at end of year ........................ 246,639 224,265 190,711 51,874 40,182 30,089 Plan assets: Balance at beginning of year............... 533,340 464,110 515,889 23,133 15,732 22,103 Actual return on plan assets................ 67,612 88,023 (35,282) 2,179 4,765 (9,510) Plan merger and other - net ................ 12,271 (2,969) (3,380) 2,354 1,842 1,242 Effect of foreign exchange................... 1,724 1,669 2,219 Benefits paid ....................................... (17,126) (15,824) (13,117) (866) (875) (322) Balance at end of year ........................ 596,097 533,340 464,110 28,524 23,133 15,732 Excess (deficiency) of plan assets over projected benefit obligation: Balance at end of year...................... 349,458 309,075 273,399 (23,350) (17,049) (14,357) Unrecognized actuarial loss.............. 74,290 108,297 137,690 24,602 18,922 18,368 Unrecognized prior service cost........ 1,506 1,726 2,684 328 388 Excess recognized in the Consolidated Balance Sheets .............. $ 425,254 $419,098 $413,773 $ 1,580 $ 2,261 $ 4,011 Excess recognized in the Consolidated Balance Sheets consisted of: Deferred pension assets .................... $ 428,714 $419,098 $413,773 $ 1,524 $ 1,069 $ 816 Benefit liability included in Other accruals ........................... (6,235) (6,982) (7,391) Benefit liability included in Other long-term liabilities.......... (3,460) (3,507) (3,615) (1,320) Cumulative other comprehensive loss ........................ 9,798 11,789 11,906 $ 425,254 $419,098 $413,773 $ 1,580 $ 2,261 $ 4,011 Weighted-average assumptions  used to determine projected  benefit obligation: Discount rate.................................... 5.75% 6.00% 6.55% 5.49% 5.73% 5.50% Rate of compensation increase ......... 4.00% 4.00% 4.00% 3.98% 3.67% 3.50% Weighted-average assumptions used to determine net pension (credit) cost: Discount rate.................................... 5.98% 6.55% 6.75% 5.73% 5.50% 6.00% Expected long-term rate of return on assets ........................................ 7.50% 8.00% 8.50% 8.00% 8.00% 8.50% Rate of compensation increase ......... 4.00% 4.00% 4.50% 3.67% 3.50% 3.50% Net pension (credit) cost: Service cost ......................................... $ 10,992 $ 7,036 $ 4,214 $ 1,520 $ 1,358 $ 968 Interest cost......................................... 12,777 12,066 12,016 2,354 1,959 1,383 Expected return on assets.................... (39,695) (36,485) (43,349) (1,934) (1,465) (1,525) Recognition of: Unrecognized prior service cost........ 788 958 867 59 294 Unrecognized actuarial loss.............. 6,047 11,100 1,935 1,100 1,107 478 Net pension (credit) cost..................... $ (9,091) $ (5,325) $ (24,317) $ 3,099 $ 3,253 $ 1,304 57