NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For measurement purposes, a 6.5% annual rate of increase in the per capita cost of covered health care benefits was assumed. A one-percentage-point change in assumed health care cost trend rates would not have a material impact on service and interest cost and the postretirement benefit obligation.

The Company also maintains an unfunded supple-mental Executive Retirement Plan. The projected benefit obligation was $10.7 million and the accumulated benefit obligation was $6.3 million as of February 3, 2001 and $7.9 million and $4.7 million, respectively, as of January 29, 2000.

The Company’s defined contribution 401( k) plan covers salaried and certain hourly employees. Company contributions represent a partial matching of employee contributions generally up to a maximum of 3.5% of the employee’s salary. The Company’s expense for this plan was $2.6 million in 2000, $2.7 million in 1999 and $2.8 million in 1998.

[4] INCOME TAXES

The components of earnings before income taxes consisted of domestic earnings before income taxes of $28.7 million, $28.8 million and $25.2 million, in 2000, 1999 and 1998, respectively, and foreign earnings before income taxes of $23.7 million, $23.0 million, and $12.4 million in 2000, 1999 and 1998, respectively.

The components of income tax expense (benefit) were as follows (in thousands):

The Company made federal, state and foreign tax payments of $13.9 million, $15.4 million and $13.7 million in fiscal 2000, 1999 and 1998, respectively.

The differences between the tax expense reflected in the financial statements and the amounts calculated at the federal statutory income tax rate of 35% were as follows (in thousands):