The following table sets forth the weighted average assumptions used in developing the benefit obligation as of February 29, 2004, and February 28, 2003: The following table sets forth the assumed health care cost trend rates as of February 29, 2004, and February 28, 2003: The following table sets forth the weighted average assumptions used in developing the net periodic non-pension postretirement expense for the years ended February 29, 2004, and February 28, 2003: Assumed health care trend rates could have a significant effect on the amount reported for health care plans. A one percent change in assumed health care cost trend rates would have the following effects: Step rent provisions, escalation clauses, capital improvement funding and other lease concessions, when present in the Company’s leases, are taken into account in computing the minimum lease payments. The minimum lease payments for the Company’s operating leases are recognized on a straight-line basis over the minimum lease term. Future payments under noncance- lable operating leases having initial or remaining terms of one year or more are as follows during the next five fiscal years and there- after: 62 Operating leases – 15. COMMITMENTS AND CONTINGENCIES: February 29, February 28,  2004 2003 Discount rate 6.00% 6.46% Rate of compensation increase 3.50% 4.00% For the Years Ended February 29, February 28, 2004 2003 Discount rate 6.46% 6.50% Rate of compensation increase 4.00% 4.00% 1% Increase 1% Decrease (in thousands) Effect on total service and interest cost components $ 56 $ (47) Effect on postretirement benefit obligation $ 623 $ (540) February 29, 2004 February 28, 2003 Non-U.S. Non-U.S. U.S. Plan Plan U.S. Plan Plan Health care cost trend rate assumed for next year 5.1% 10.5% 6.2% 10.3% Rate to which the cost trend rate is assumed to  decline to (the ultimate trend rate) 4.0% 4.7% 4.0% 4.7% Year that the rate reaches the ultimate trend rate 2005 2011 2005 2010 Net periodic benefit cost reported in the Consolidated Statements of Income includes the following components: For the Years Ended February 29, February 28, February 28, 2004 2003 2002 (in thousands) Service cost $ 147 $ 135 $ 155 Interest cost 282 260 305 Amortization of prior service cost 7 41 41 Recognized net actuarial gain (loss) 19 (20) 9 Net periodic benefit cost $ 455 $ 416 $ 510