Goldman Sachs 2000 Annual Report Download - page 63

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The firm also had outstanding guarantees of $284 million
and $575 million relating primarily to its fund management
activities as of November 2000 and November 1999,
respectively.
Note 8/Equity Capital
On August 21, 2000, Sumitomo Bank Capital Markets, Inc.
exchanged all 7.4 million shares of its nonvoting common
stock, par value $0.01 per share, of Group Inc. for an equal
number of shares of voting common stock.
On March 20, 2000, the Board of Directors of Group Inc.
approved a common stock repurchase program authorizing
the repurchase of up to 15 million shares of the firm’s
common stock. For the year ended November 2000, the
firm repurchased approximately 6.5 million shares of its
common stock at a cost of $648 million.
On May 7, 1999, the firm converted from a partnership to a
corporation and completed its initial public offering. In that
offering, the firm sold 51 million shares of common stock. In
addition, the firm completed a number of transactions to
have Group Inc. succeed to the business of The Goldman
Sachs Group, L.P. These transactions included the
exchange of the partnership interests of the participating
limited partners, retired limited partners, Sumitomo Bank
Capital Markets, Inc. and Kamehameha Activities Associa-
tion for shares of common stock.
61
Note 9/Earnings Per Share
The computations of basic and diluted EPS are set forth below:
Year Ended November
(in millions, except per share amounts) 2000 1999
Numerator for basic and diluted EPS—earnings
available to common shareholders $3,067 $2,708
Denominator for basic EPS—weighted average number of common shares 484.6 475.9
Effect of dilutive securities
Restricted stock units 16.2 5.6
Stock options 10.7 4.3
Dilutive potential common shares 26.9 9.9
Denominator for diluted EPS—weighted average number
of common shares and dilutive potential common shares 511.5 485.8
Basic EPS $6.33 $ 5.69
Diluted EPS 6.00 5.57
Note 10/Employee Benefit Plans
The firm sponsors various pension plans and certain other
postretirement benefit plans, primarily healthcare and
life insurance, which cover most employees worldwide. The
firm also provides certain benefits to former or inactive
employees prior to retirement. A summary of these plans
is set forth below:
Defined Benefit Pension Plans and
Postretirement Plans
The firm maintains a defined benefit pension plan for sub-
stantially all U.S. employees. Employees of certain non-
U.S. subsidiaries participate in various local defined benefit
plans. These plans generally provide benefits based on
years of credited service and a percentage of the
employee’s eligible compensation. In addition, the firm has
unfunded postretirement benefit plans that provide medical
and life insurance for eligible retirees, employees and
dependents in the United States.