49 The Company and its domestic subsidiaries have a defined benefit pension plan covering substantially all U.S. employees.  Plan benefits are generally based on years of service and compensation and are generally noncontributory. Certain foreign  subsidiaries have defined benefit plans covering their employees. Certain U.S. employees not covered by the defined benefit plan are  covered by defined contribution plans. The following is a summary of the Company's defined benefit plans funded status as of the  most recent actuarial valuations; for each year presented below accumulated benefits exceed assets: Note 5—Benefit Plans and Other Postretirement Benefits  A M P H E N O L C O R P O R A T I O N 2 0 0 4 A N N U A L R E P O R T  Year Ended December 31,  2004 2003 2002 Components of net pension expense:  Service cost  $ 7,069 $5,910  $5,116  Interest cost 17,649 16,894 16,313 Expected return on plan assets  (20,152)  (19,702)  (22,281)  Net amortization of actuarial losses  5,537 3,418  1,575  Net pension expense  $10,103 $6,520  $ 723  December 31,  2004 2003 Change in benefit obligation:  Benefit obligation at beginning of year  $299,060  $268,001   Service  cost  7,069  5,910   Interest cost  17,649  16,894  Plan participants' contributions  453  342  Plan amendments  5,247  -   Actuarial loss  18,915  18,046  Foreign exchange translation  3,686  6,461   Benefits  paid  (17,034)  (16,594)  Benefit obligation at end of year  335,045  299,060  Change in plan assets:  Fair value of plan assets at beginning of year  188,209  156,079  Actual return on plan assets  20,215  32,535   Employer  contribution  22,328  11,619  Plan participants' contributions  453  342  Foreign exchange translation  2,239  3,111   Benefits  paid  (15,566)  (15,477)  Fair value of plan assets at end of year  217,878  188,209  Excess of liabilities over assets  (117,167)  (110,851)  Unrecognized net actuarial loss  124,713  111,070  Unrecognized prior service cost  11,290  7,104  Unrecognized transition obligation net  (1,079)  (1,059)  Additional minimum pension liability  (117,252)  (103,823)  Accrued benefit cost  $(99,495)  $ (97,559) 