Goldman Sachs 2003 Annual Report Download - page 94

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Notes to Consolidated Financial Statements
92 GOLDMAN SACHS 2003 ANNUAL REPORT
The components of pension expense/(income) and postretirement expense are set forth below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2003 2002 2001
U.S. pension
Service cost $8 $6 $4
Interest cost 13 10 9
Expected return on plan assets (16) (12) (12)
Net amortization 5(2) (3)
Total $ 10 $ 2 $ (2)
Non-U.S. pension
Service cost $ 41 $ 37 $ 35
Interest cost 12 97
Expected return on plan assets (15) (12) (9)
Net amortization 841
Total $ 46 $ 38 $ 34
Postretirement
Service cost $8 $8 $6
Interest cost 12 95
Expected return on plan assets —(1) (1)
Net amortization 11 10 —
Total $ 31 $ 26 $ 10
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. These 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
2003 2002 2001
Defined benefit pension plans
U.S. pension—projected benefit obligation
Discount rate 6.00% 6.75% 7.00%
Rate of increase in future compensation levels 5.00 5.00 5.00
U.S. pension—net periodic benefit cost
Discount rate 6.59(1) 7.00 7.50
Rate of increase in future compensation levels 5.00 5.00 5.00
Expected long-term rate of return on plan assets 8.50 8.50 8.50
Non-U.S. pension—projected benefit obligation
Discount rate 4.76 4.78 4.93
Rate of increase in future compensation levels 4.37 4.14 4.11
Expected long-term rate of return on plan assets 6.25 5.86 5.74
Postretirement plans—projected benefit obligation
Discount rate 6.00% 6.75% 7.00%
Rate of increase in future compensation levels 5.00 5.00 5.00
Postretirement plans—net periodic benefit cost
Discount rate 6.75(1) 7.00 7.50
Rate of increase in future compensation levels 5.00 5.00 5.00
Expected long-term rate of return on plan assets —8.50 8.50
(1) Includes plan added in connection with business combination.