Goldman Sachs 2000 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2000 Goldman Sachs annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

The components of the net tax expense/(benefit) reflected on the consolidated statements of earnings are set forth below:
Year Ended November
(in millions) 2000 1999 1998
Current Taxes
U.S. federal $1,063 $16 $16
State and local 285 67 28
Non-U.S. 957 588 426
Total current tax expense 2,305 671 470
Deferred Taxes
U.S. federal (299) (688) —
State and local 49 (342) (3)
Non-U.S. (102) (357) 26
Total deferred tax (benefit)/expense (352) (1,387) 23
Net tax expense/(benefit) $1,953 $ (716) $493
67
Deferred income taxes reflect the net tax effects of tempo-
rary differences between the financial reporting and tax
bases of assets and liabilities. These temporary differences
result in taxable or deductible amounts in future years and
are measured using the tax rates and laws that will be in
Significant components of the firm’s deferred tax assets and liabilities are set forth below:
As of November
(in millions) 2000 1999
Deferred Tax Assets
Compensation and benefits $1,781 $1,397
Foreign tax credits 114 140
Depreciation and amortization —57
Other, net 219 226
2,114 1,820
Less: valuation allowance(1) (37) (83)
Total deferred tax assets 2,077 1,737
Deferred Tax Liabilities
Depreciation and amortization 35 —
Unrealized gains 158 257
Total deferred tax liabilities 193 257
Net deferred tax assets $1,884 $1,480
(1) Relates primarily to the ability to recognize tax benefits associated with non-U.S. operations.
effect when such differences are expected to reverse. In
connection with the conversion from a partnership to a
corporation, the firm recognized a deferred tax benefit
related to the revaluation of net deferred tax assets
recorded as a partnership.
The decrease of $46 million in the valuation allowance was
primarily due to increased utilization of foreign tax credits.
Foreign tax credits of $114 million will begin to expire in 2005.