Goldman Sachs 2000 Annual Report Download - page 65

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63
The components of pension (income)/expense and postretirement expense are set forth below:
Year Ended
U.S. Non-U.S. Post-
(in millions) Pension Pension retirement
November 2000
Service cost $ 4 $28 $2
Interest cost 874
Expected return on plan assets (10) (8) —
Net amortization (3) 1 —
Total $ (1) $28 $6
November 1999
Service cost $ 4 $15 $3
Interest cost 8 5 4
Expected return on plan assets (10) (5) —
Net amortization (2) 3 —
Total $ — $18 $7
November 1998
Service cost $ 3 $11 $2
Interest cost 7 4 4
Expected return on plan assets (10) (4) —
Net amortization (3) 2 —
Total $ (3) $13 $6
The weighted average assumptions used to develop net periodic pension cost and the actuarial present value of the
projected benefit obligation are set forth below. The assumptions represent a weighted average of the assumptions used for
the U.S. and international plans and are based on the economic environment of each applicable country.
Year Ended November
2000 1999 1998
Defined Benefit Pension Plans
U.S. Plans
Discount rate 7.5% 7.5% 7.0%
Rate of increase in future compensation levels 5.0 5.0 5.0
Expected long-term rate of return on plan assets 8.5 7.5 7.5
International Plans
Discount rate 4.7 4.6 5.0
Rate of increase in future compensation levels 4.3 4.3 4.7
Expected long-term rate of return on plan assets 5.8 6.0 6.0
Postretirement Plans
Discount rate 7.5 7.5 7.0
Rate of increase in future compensation levels 5.0 5.0 5.0
For measurement purposes, a 7.6% annual rate of increase
in the per capita cost of covered healthcare benefits was
assumed for the fiscal year ending November 2001. The
rate was assumed to decrease gradually to 5.0% for the
fiscal year ending November 2008 and remain at that
level thereafter.