Notes to Consolidated Financial Statements (continued) The Company makes annual contributions in amounts at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974. The following table sets forth the plans’ funded status and amounts recognized in the Company’s financial statements: Year Ended August 30, August 31, (in thousands) 2003 2002 Change in benefit obligation: Benefit obligation at beginning of year $117,005 $ 91,993 Service cost 4,823 13,500 Interest cost 6,214 6,861 Actuarial losses 39,518 5,802 Plan amendments (29,813) — Benefits paid (1,670) (1,151) Benefit obligation at end of year 136,077 117,005 Change in plan assets: Fair value of plan assets at beginning of year 83,306 73,735 Loss on plan assets (603) (2,242) Company contributions 6,293 12,964 Benefits paid (1,670) (1,151) Administrative expenses (589) — Fair value of plan assets at end of year 86,737 83,306 Reconciliation of funded status: Underfunded status of the plans (49,340) (33,699) Unrecognized net actuarial losses 49,622 31,360 Unamortized prior service cost (1,811) (1,738) Accrued benefit cost $ (1,529) $ (4,077) Recognized defined benefit pension liability: Accrued benefit liability $ (49,340) $ (4,091) Intangible asset — 14 Accumulated other comprehensive income 47,811 — Net liability recognized $ (1,529) $ (4,077) Year Ended August 30, August 31, August 25, (in thousands) 2003 2002 2001 Components of net periodic benefit cost: Service cost $ 4,823 $ 13,500 $ 10,339 Interest cost 6,214 6,861 5,330 Expected return on plan assets (6,609) (6,255) (6,555) Amortization of prior service cost (575) (568) (518) Recognized net actuarial losses — 1,030 — Curtailment gain (107) — — Net periodic benefit cost $ 3,746 $ 14,568 $ 8,596 44