04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 72 The Company maintains a noncontributory defined pension plan for substantially all U.S. employees who meet certain age and service requirements. In July 2003, the Company revised the Helmerich & Payne, Inc. Employee Retirement Plan (“Pension Plan”) to close the Pension Plan to new participants effective October 1, 2003, and reduce benefit accruals for current participants through September 30, 2006 at which time benefit accruals will be discontinued and the Pension Plan frozen. The following table and other information in this footnote pr ovide information at September 30 as to the Company sponsored domestic defined pension plan as required by SFAS No. 132 (Revised 2003), “Employers’ Disclosures About Pensions and Other Postretirement Benefits.” Change in benefit obligation: NOTE 10 EMPLOYEE BENEFIT PLANS Years Ended September 30, 2004 2003 (in thousands) Benefit obligation at beginning of year  $ 71,174  $ 68,134 Service cost  3,943  5,401 Interest cost  4,403  4,423 Curtailments — (8,444) Actuarial loss  5,985 6,269 Benefits paid (3,283) (4,609) Benefit obligation at end of year  $ 82,222 $ 71,174 Years Ended September 30, 2004 2003 (in thousands) Fair value of plan assets at beginning of year $ 53,635  $ 48,286 Actual gain (loss) on plan assets 6,298 9,958 Benefits paid (3,283) (4,609) Fair value of plan assets at end of year  $ 56,650 $ 53,635 Funded status of the plan $(25,572) $(17,539) Unrecognized net actuarial loss  18,211 15,052 Unrecognized prior service cost  1 20 Accumulated other comprehensive loss  (before tax) (11,807) (9,856) Accrued benefit cost $(19,167) $(12,323) Years Ended September 30, 2004 2003 2002 Discount rate  5.75%  6.25%  6.75% Expected return on plan assets 8.00%  8.00%  8.00% Rate of compensation increase  5.00%  5.00%  5.00%  73 Change in plan assets: Weighted-average assumptions: