Goldman Sachs 2004 Annual Report Download - page 98

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notes฀to฀consolidated฀financial฀statements
96฀฀฀G O L D M A N ฀ S A C H S ฀ 2004฀ ANNUAL฀REPO RT
96฀฀฀G O L D M A N ฀ S A C H S ฀ 2 004฀ A N N U A L ฀ R E P O RT
The components of pension expense/(income) and postretirement expense are set forth below:
฀ ฀ YEAR฀ENDED฀NOVEMBER
(IN฀MILLIONS)฀ 2004฀ 2003฀ 2002
U.S. pension
Service cost $฀฀10 $฀฀฀ 8฀ $฀฀฀ 6
Interest cost 18 13฀ 10
Expected return on plan assets (23) (16)฀ (12)
Net amortization 5 5฀ (2)
Total $฀฀10 $฀฀10฀ $฀฀฀ 2
Non-U.S. pension
Service cost $฀฀44 $฀฀41฀ $฀฀37
Interest cost 16 12฀ 9
Expected return on plan assets (20) (15)฀ (12)
Net amortization 8 8฀ 4
Total $฀฀48 $฀฀46฀ $฀฀38
Postretirement
Service cost $฀฀฀ 9 $฀฀฀ 8฀ $฀฀฀ 8
Interest cost 12 12฀ 9
Expected return on plan assets — —฀ (1)
Net amortization 11 11฀ 10
Total $฀฀32 $฀฀31฀ $฀฀26
The weighted average assumptions used to develop net periodic pension cost and the actuarial present value of the projected ben-
efit 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฀
฀ ฀ 2004฀ 2003฀ 2002
Defined benefit pension plans
U.S. pension — projected benefit obligation
Discount rate 5.50% 6.00%฀ 6.75%
Rate of increase in future compensation levels N/A 5.00฀ 5.00
U.S. pension — net periodic benefit cost
Discount rate 6.00 6.59(1)฀ 7.00
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 4.63 4.76฀ 4.78
Rate of increase in future compensation levels 4.49 4.37฀ 4.14
Non-U.S. pension — net periodic benefit cost
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 5.50% 6.00%฀ 6.75%
Rate of increase in future compensation levels N/A 5.00฀ 5.00
Postretirement plans — net periodic benefit cost
Discount rate 6.00 6.75(1)฀ 7.00
Rate of increase in future compensation levels 5.00 5.00฀ 5.00
Expected long-term rate of return on plan assets — —฀ 8.50
(1)฀Includes฀plan฀added฀in฀connection฀with฀business฀combination.
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