Goldman Sachs 2001 Annual Report Download - page 63

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page 61 GOLDMAN SACHS ANNUAL REPORT 2001
NOTE 10 EMPLOYEE BENEFIT PLANS
The firm sponsors various pension plans and certain other
postretirement benefit plans, primarily healthcare and life insur-
ance, which cover most employees worldwide. The firm also
provides certain benefits to former or inactive employees prior to
retirement. A summary of these plans is set forth below:
Defined Benefit Pension Plans and Postretirement Plans
The firm maintains a defined benefit pension plan for substan-
tially all U.S. employees. Employees of certain non-U.S.
subsidiaries participate in various local defined benefit plans.
These plans generally provide benefits based on years of credited
service and a percentage of the employee’s eligible compensation.
In addition, the firm has largely-unfunded postretirement benefit
plans that provide medical and life insurance for eligible retirees,
employees and dependents in the United States.
The following table provides a summary of the changes in the plans’ benefit obligations and the fair value of assets for 2001 and 2000
and a statement of the funded status of the plans as of November 2001 and November 2000:
AS OF OR FOR YEAR ENDED NOVEMBER
2001 2000
U.S. NON-U.S. POST- U.S. NON-U.S. POST-
(IN MILLIONS) PENSION PENSION RETIREMENT(1) PENSION PENSION RETIREMENT
Benefit obligation
Balance, beginning of year $120 $163 $ 59 $108 $148 $ 61
Service cost 435 6 428 2
Interest cost 97587 4
Plan amendments ————1 —
Actuarial loss/(gain) 9 (12) 18 2 6 (9)
Benefits paid (2) (7) (4) (2) (6) (2)
Effect of foreign exchange rates — (2) — — (21) —
Balance, end of year $140 $184 $ 84 $120 $163 $ 56
Fair value of plan assets
Balance, beginning of year $148 $128 $ 15 $148 $116 $ —
Actual return on plan assets (8) (18) (3) 26 —
Firm contributions —61 4—29 2
Benefits paid (2) (7) (4) (2) (6) (2)
Effect of foreign exchange rates ———— (17) —
Balance, end of year $138 $164 $ 12 $148 $128 $ —
Prepaid/(accrued) benefit cost
Funded status $ (2) $ (20) $(72) $ 28 $ (35) $(56)
Unrecognized actuarial loss/(gain) 40 36 12 11 19 (5)
Unrecognized transition (asset)/obligation (31) 16 2 (34) 19 —
Unrecognized prior service cost — 3 (1) — 3 (2)
Prepaid/(accrued) benefit cost $ 7 $ 35 $(59) $ 5 $ 6 $(63)
(1) Includes certain plans that had previously been deemed immaterial for the fiscal year ended November 2000.
For plans in which the accumulated benefit obligation exceeded
plan assets, the aggregate projected benefit obligation and accu-
mulated benefit obligation was $63 million and $46 million,
respectively, as of November 2001, and $57 million and
$35 million, respectively, as of November 2000. The fair value of
plan assets for each of these plans was $35 million and $19 mil-
lion as of November 2001 and November 2000, respectively.