Goldman Sachs 2003 Annual Report Download - page 101

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Notes to Consolidated Financial Statements
GOLDMAN SACHS 2003 ANNUAL REPORT 99
Segment Operating Results
Management believes that the following information provides a reasonable representation of each segment’s contribu-
tion to consolidated pre-tax earnings and total assets:
AS OF OR FOR YEAR ENDED NOVEMBER
(IN MILLIONS) 2003 2002 2001
Investment Banking Net revenues(1) $ 2,711 $ 2,830 $ 3,836
Operating expenses(2) 2,504 2,454 3,117
Pre-tax earnings $ 207 $ 376 $ 719
Segment assets $ 4,867 $ 4,555 $ 3,938
Trading and Net revenues(1) $ 10,443 $ 8,647 $ 9,570
Principal Investments Operating expenses(2) 6,938 6,505 7,310
Pre-tax earnings $ 3,505 $ 2,142 $ 2,260
Segment assets $250,490 $246,789 $215,654
Asset Management Net revenues(1) $ 2,858 $ 2,509 $ 2,405
and Securities Services Operating expenses(2) 1,890 1,562 1,325
Pre-tax earnings $ 968 $ 947 $ 1,080
Segment assets $147,647 $103,436 $ 91,788
Total Net revenues(1) $ 16,012 $ 13,986 $ 15,811
Operating expenses(2)(3) 11,567 10,733 12,115
Pre-tax earnings $ 4,445 $ 3,253 $ 3,696
Total assets(4) $403,799 $355,574 $312,218
(1) Net revenues include net interest and cost of power generation as set forth in the table below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2003 2002 2001
Investment Banking $ 311 $ 258 $ 159
Trading and Principal Investments 1,888 1,350 274
Asset Management and Securities Services 941 793 860
Total net interest and cost of power generation $3,140 $2,401 $1,293
(2) Operating expenses include depreciation and amortization, including the amortization of goodwill and intangible assets, as set forth in the table below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2003 2002 2001
Investment Banking $180 $140 $172
Trading and Principal Investments 584 473 577
Asset Management and Securities Services 117 131 124
Total depreciation and amortization $881 $744 $873
(3) Includes the following expenses that have not been allocated to the firm’s segments: (i) the amortization of employee initial public offering awards
of $80 million, $212 million and $363 million for the years ended November 2003, November 2002 and November 2001, respectively, and (ii) pro-
visions for a number of litigation and regulatory proceedings of $155 million for the year ended November 2003.
(4) 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.