Goldman Sachs 2002 Annual Report Download - page 83

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The components of pension expense/(income) and postretirement expense are set forth below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2002 2001 2000
U.S. pension
Service cost $ 6 $ 4 $ 4
Interest cost 10 98
Expected return on plan assets (12) (12) (10)
Net amortization (2) (3) (3)
Total $ 2 $ (2) $ (1)
Non-U.S. pension
Service cost $ 37 $35 $28
Interest cost 977
Expected return on plan assets (12) (9) (8)
Net amortization 411
Total $ 38 $34 $28
Postretirement
Service cost $8 $ 6 $ 2
Interest cost 954
Expected return on plan assets (1) (1) —
Net amortization 10 ——
Total $ 26 $ 10 $ 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 non-U.S. plans and are based on the economic environment of each applicable country.
YEAR ENDED NOVEMBER
2002 2001 2000
Defined benefit pension plans
U.S. pension
Discount rate 6.75% 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
Discount rate 4.78 4.93 4.66
Rate of increase in future compensation levels 4.14 4.11 4.29
Expected long-term rate of return on plan assets 5.86 5.74 5.81
Postretirement plans
Discount rate 6.75% 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 —
N otes to Consolidated Financial Statem ents
80 G O L D M A N SA CH S 2002 AN N UA L R EPO RT
For measurement purposes, an annual growth rate in the
per capita cost of covered healthcare benefits of 11% was
assumed for the fiscal year ending November 2003. The
rate was assumed to decrease ratably to 5% for the fiscal
year ending November 2009 and remain at that level
thereafter.