Goldman Sachs 2001 Annual Report Download - page 64

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page 62
GOLDMAN SACHS ANNUAL REPORT 2001
For measurement purposes, a 9.5% annual growth rate in the
per capita cost of covered healthcare benefits was assumed
for the fiscal year ending November 2002. The rate was
The components of pension (income)/expense and postretirement expense are set forth below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2001 2000 1999
U.S. pension
Service cost $4 $4 $4
Interest cost 988
Expected return on plan assets (12) (10) (10)
Net amortization (3) (3) (2)
Total $(2) $ (1) $ —
Non-U.S. pension
Service cost $ 35 $ 28 $ 15
Interest cost 775
Expected return on plan assets (9) (8) (5)
Net amortization 113
Total $ 34 $ 28 $ 18
Postretirement
Service cost $6 $2 $3
Interest cost 544
Expected return on plan assets (1) ——
Net amortization ———
Total $ 10 $6 $7
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
non-U.S. plans and are based on the economic environment of each applicable country.
YEAR ENDED NOVEMBER
2001 2000 1999
Defined benefit pension plans
U.S. pension
Discount rate 7.0% 7.5% 7.5%
Rate of increase in future compensation levels 5.0 5.0 5.0
Expected long-term rate of return on plan assets 8.5 8.5 7.5
Non-U.S. pension
Discount rate 4.9 4.7 4.6
Rate of increase in future compensation levels 4.1 4.3 4.3
Expected long-term rate of return on plan assets 5.7 5.8 6.0
Postretirement plans
Discount rate 7.0% 7.5% 7.5%
Rate of increase in future compensation levels 5.0 5.0 5.0
Expected long-term rate of return on plan assets 8.5 ——
assumed to decrease ratably to 5.0% for the fiscal year end-
ing November 2011 and remain at that level thereafter.