Financial Review 2004 Notes to  Consolidated Financial Statements The accumulated benefit obligation for all pension plans was $135,950 and $119,070 at May 30, 2004, and May 25, 2003, respectively. The accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan  assets were $4,881 and $0, respectively, at February 28, 2004, and $4,515 and $0, respectively, at February 28, 2003. The projected benefit  obligation for pension plans with projected benefit obligations in excess of plan assets approximated their accumulated benefit obligation at  February 28, 2004 and February 28, 2003. The following table presents the weighted-average assumptions used to determine benefit obligations and net expense:  $^{(1)}$ Determined as of the end of fiscal year. $^{(2)}$ Determined as of the beginning of fiscal year. We set the discount rate assumption annually for each of the  plans at their valuation dates to reflect the yield of high-quality fixed- income debt instruments, with lives that approximate the maturity  of the plan benefits. The expected long-term rate of return on plan  assets and health care cost trend rates are based upon several factors,  including our historical assumptions compared with actual results, an analysis of current market conditions, asset allocations, and the views of leading financial advisers and economists. Our target asset allocation is 35 percent U.S. equities, 30 percent high-quality, long- duration fixed-income securities, 15 percent international equities, 10 percent real assets, and 10 percent private equities. We monitor  our actual asset allocation to ensure that it approximates our target  allocation and believe that our long-term asset allocation will continue  to approximate our target allocation. The defined benefit pension  plans have the following asset allocations at their measurement dates  of February 28, 2004, and 2003, respectively: Based on an analysis performed in fiscal 2003, we lowered our  defined benefit plans’ expected long-term rate of return on plan assets  for fiscal 2004 to 9.0 percent, a reduction from its previous level of  10.4 percent. Our historical ten-year rate of return on plan assets,  calculated using the geometric method average of returns, is approxi- mately 10.5 percent as of May 30, 2004. The discount rate and expected return on plan assets assump- tions have a significant effect on amounts reported for defined benefit  pension plans. A quarter percentage point change in the defined ben- efit plans’ discount rate and the expected long-term rate of return on  plan assets would increase or decrease earnings before income taxes  by $769 and $357, respectively. The assumed health care cost trend rate increase in the per- capita charges for benefits ranged from 11.0 percent to 12.0 percent  for fiscal 2005, depending on the medical service category. The rates  gradually decrease to 5.0 percent through fiscal 2010 and remain at  that level thereafter. The assumed health care cost trend rate has a significant effect  on amounts reported for retiree health care plans. A one-percent- age-point variance in the assumed health care cost trend rate would  increase or decrease the total of the service and interest cost compo- nents of net periodic postretirement benefit cost by $341 and $267,  respectively, and would increase or decrease the accumulated postre- tirement benefit obligation by $3,572 and $2,805, respectively.  Darden Restaurants  49 Defined Benefit Plans  Postretirement Benefit Plan 2004  2003  2004  2003 Weighted-average assumptions used to determine benefit obligations at May 30 and May 25, (1) Discount rate  6.00%  6.25%  6.00%  6.25% Rate of future compensation increases  3.75%  3.75%  N/A N/A  Weighted-average assumptions used to determine net expense for fiscal years ended May 30 and May 25, (2) Discount rate  6.25%  7.00%  6.25%  7.00% Expected long-term rate of return on plan assets  9.00%  10.40%  N/A  N/A Rate of future compensation increases  3.75%  3.75%  N/A  N/A 2004  2003 U.S. equities  38%  42% High-quality, long-duration fixed-income securities  26%  23% International equities  18%  17% Real assets  12%  11% Private equities  6%  7% Total  100%  100%