Goldman Sachs 2001 Annual Report Download - page 72

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page 70
GOLDMAN SACHS ANNUAL REPORT 2001
Segment Operating Results
Management believes that the following information provides a reasonable representation of each segment’s contribution to consoli-
dated pre-tax earnings and total assets:
AS OF OR FOR YEAR ENDED NOVEMBER
(IN MILLIONS) 2001 2000 1999
Global Capital Markets Net revenues(1) $ 10,185 $ 11,998 $ 10,132
Operating expenses(2) 8,251 7,844 6,232
Pre-tax earnings $ 1,934 $ 4,154 $ 3,900
Segment assets $163,376 $149,497 $127,529
Asset Management Net revenues(1) $ 5,626 $ 4,592 $ 3,213
and Securities Services Operating expenses(2) 3,501 3,008 2,396
Pre-tax earnings $ 2,125 $ 1,584 $ 817
Segment assets $148,004 $133,827 $119,536
Total Net revenues(1) $ 15,811 $ 16,590 $ 13,345
Operating expenses(2) 12,115(4) 11,570(5) 11,353(6)
Pre-tax earnings $ 3,696 $ 5,020 $ 1,992
Total assets(3) $312,218 $284,410 $248,348
(1) Net revenues include net interest as set forth in the table below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2001 2000 1999
Global Capital Markets $254 $131 $ 15
Asset Management and Securities Services 1,039 855 689
Total net interest $1,293 $986 $704
(2) Operating expenses include depreciation and amortization as set forth in the table below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2001 2000 1999
Global Capital Markets $558 $336 $228
Asset Management and Securities Services 315 150 109
Total depreciation and amortization $873 $486 $337
(3) Includes deferred tax assets relating to the firm’s conversion to corporate form and certain assets that management believes are not allocable to a particular segment.
(4) Includes the amortization of employee initial public offering awards of $363 million that has not been allocated to the firm’s segments.
(5) Includes the following expenses that have not been allocated to the firm’s segments: (i) the amortization of employee initial public offering and acquisition awards of
$428 million and (ii) the acquisition awards of $290 million related to the firm’s combination with SLK.
(6) Includes the following expenses that have not been allocated to the firm’s segments: (i) nonrecurring employee initial public offering awards of $2.26 billion,
(ii) the amortization of employee initial public offering awards of $268 million and (iii) the charitable contribution to The Goldman Sachs Foundation of $200 million made at
the time of the firm’s initial public offering.