Goldman Sachs 2002 Annual Report Download - page 84

The assumed cost of healthcare has an effect on the amounts reported for the firm’s postretirement plans. A 1%
change in the assumed healthcare cost trend rate would have the following effects:
1% INCREASE 1% DECREASE
(IN MILLIONS) 2002 2001 2002 2001
Cost $3 $2 $ (2) $(1)
Obligation 25 10 (22) (9)
Defined Contribution Plans
The firm contributes to employer-sponsored U.S. and
non-U.S. defined contribution plans. The firm’s contri-
bution to these plans was $154 million, $193 million
and $129 million for 2002, 2001 and 2000, respec-
tively. Contributions in 2002 and 2001 each reflect a
full year of contributions with respect to employees
added as a result of the firm’s combination with SLK.
The firm has also established a nonqualified defined
contribution plan (the Plan) for certain senior employ-
ees. Shares of common stock contributed to the Plan
and outstanding as of November 2002 were 8.6 mil-
lion. The shares of common stock will vest and gener-
ally be distributable to the participant on specified
future dates if the participant satisfies certain condi-
tions and the participant’s employment with the firm
has not been terminated, with certain exceptions for
terminations of employment due to death or a change
in control. Dividends on the underlying shares of com-
mon stock are paid currently to the participants.
Forfeited shares remain in the Plan and are reallocated
to other participants. Contributions to the Plan are
expensed on the date of grant. Plan expense was imma-
terial for the years ended November 2002,
November 2001 and November 2000.
N O T E 12
EMPLOYEE INCENTIVE PLANS
Stock Incentive Plan
The firm sponsors a stock incentive plan that provides
for grants of incentive stock options, nonqualified stock
options, stock appreciation rights, dividend equivalent
rights, restricted stock, restricted stock units and other
stock-based awards.
The total number of shares of common stock that may
be issued under the stock incentive plan through fiscal
2002 may not exceed 300 million shares. As of
November 2002 and November 2001, 128.6 million
shares and 135.0 million shares, respectively, were
available for grant under the stock incentive plan,
after considering stock-based compensation awards
that were issued subsequent to year end, as part of
year-end compensation.
Restricted Stock Units
The firm issued restricted stock units to employees under
the stock incentive plan, primarily in connection with its
initial public offering, acquisitions and as part of year-
end compensation. Of the total restricted stock units
outstanding as of November 2002 and November 2001,
(i) 29.9 million units and 41.7 million units, respectively,
required future service as a condition to the delivery of
the underlying shares of common stock and (ii) 18.3 mil-
lion units and 25.6 million units, respectively, did not
require future service. In all cases, delivery of the under-
lying shares of common stock is conditioned on the
grantee’s satisfying certain other requirements outlined
in the award agreements.
N otes to Consolidated Financial Statem ents
GO L D M A N SA CH S 2002 A N N UAL R EPO RT 81