NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (thousands of dollars unless otherwise indicated) During 2004, a formal plan was approved to close a leased distribution facility in the Automotive Finishes Segment. During 2003, a formal plan was approved to close a manufacturing facility in the Consumer Segment and the useful lives of the assets were reduced in accor- dance with SFAS No. 144. Both facilities were closed during 2004. In accordance with SFAS No. 146, non- cancelable rent, post-closure severance and other quali- fied exit costs were accrued at the time of closing. No formal shutdown plans were approved during 2002. Less than 7 percent of the ending accrual for quali- fied exit costs at December 31, 2004 related to facilities shutdown prior to 2002 that are expected to be incurred by the end of 2005. The remaining portion of the ending accrual primarily represented post-closure contractual and demolition expenses related to certain owned facilities which are closed and being held for disposal or involved in ongoing environmental-related remediation activities. The Company cannot reasonably estimate when such matters will be concluded to permit disposition. The Company provides certain health care benefits for active employees. The plans are contributory and contain cost-sharing features such as deductibles and coinsurance. There were 16,725, 16,286 and 16,301 active employees entitled to receive benefits under these plans as of December 31, 2004, 2003 and 2002, respectively. The cost of these benefits for active employees, which includes claims incurred and claims incurred but not reported, amounted to $82,980, $80,888 and $70,169 for 2004, 2003 and 2002, NOTE 7–-HEALTH CARE, PENSION AND  OTHER BENEFITS respectively. The Company has a fund, to which it no longer intends to contribute, that provides for payment of health care benefits of qualified employees. Distribu- tions from the fund were $4,273, $8,542 and $8,134 in 2004, 2003 and 2002, respectively. In connection with the acquisitions of Duron and PSB, the Company acquired certain health care benefit plans for employees who met certain eligibility requirements. The Company operated the acquired plans independently from the date of acquisition until December 31, 2004. Beginning January 1, 2005, the participants of these acquired plans became participants in the Company’s health  care benefit plan. The Company provides pension benefits to substan- tially all employees through noncontributory defined contribution or defined benefit plans. The Company’s annual contribution for its domestic defined contribution pension plan, which is based on six percent of compensation for covered employees, was $41,040, $41,531 and $41,569 for 2004, 2003 and 2002, respectively. Assets in employee accounts of the domestic defined contribution pension plan are invested in various mutual funds as directed by the participants. These mutual funds did not own a significant number  of shares of the Company’s common stock. The Company’s annual contribution for its foreign defined contribution pension plans, which is based on various percentages of compensation for covered employees up to certain limits, was $1,049, $1,236 and $1,260 for 2004, 2003 and 2002, respectively. Assets in employee accounts of the foreign defined contribution pension plans are invested in various mutual funds. These mutual funds did not own a significant number  of shares of the Company’s common stock. 55 Exit Plan Balance at December 31, 2001 Provisions in Cost of goods sold Actual expenditures charged to accrual Adjustments to prior provisions in Other expense - net Balance at December 31, 2002 Consumer manufacturing facility shutdown in 2001: Severance and related costs ............ $ 1,454 $ (1,321) $ 133 Other qualified exit costs................ 1,946 (256) $ 1,100 2,790 Paint Stores manufacturing facility shutdown in 2001: Severance and related costs ............ 710 (667) (43) Other qualified exit costs................ 290 43 333 Other qualified exit costs for  facilities shutdown prior to 2001 .. 15,479 (1,420) (838) 13,221 Totals ................................................ $ 19,879 $ (3,664) $ 262 $ 16,477