Goldman Sachs 2003 Annual Report Download - page 73

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GOLDMAN SACHS 2003 ANNUAL REPORT 71
Consolidated Statements of Cash Flows
The accompanying notes are an integral part of these consolidated financial statements.
YEAR ENDED NOVEMBER
(IN MILLIONS) 2003 2002 2001
Cash flows from operating activities
Net earnings $ 3,005 $ 2,114 $ 2,310
Noncash items included in net earnings
Depreciation and amortization 562 617 613
Amortization of goodwill and identifiable intangible assets 319 127 260
Deferred income taxes 93 230 52
Stock-based compensation 711 639 789
Changes in operating assets and liabilities
Cash and securities segregated in compliance with
U.S. federal and other regulations (9,311) 1,745 (5,002)
Net receivables from brokers, dealers and clearing organizations (1,797) (2,423) 931
Net payables to customers and counterparties 7,826 5,265 20,056
Securities borrowed, net of securities loaned (10,249) (7,039) (21,098)
Securities sold under agreements to repurchase, net of
securities purchased under agreements to resell 2,081 2,429 18,046
Financial instruments owned, at fair value (28,920) (20,977) (14,390)
Financial instruments sold, but not yet purchased, at fair value 19,227 8,756 1,809
Other, net 798 (1,560) (1,511)
Net cash (used for)/provided by operating activities (15,655) (10,077) 2,865
Cash flows from investing activities
Property, leasehold improvements and equipment (592) (1,008) (1,370)
Business combinations, net of cash acquired (697) (68) (314)
Other investments (1,372) (27) (225)
Net cash used for investing activities (2,661) (1,103) (1,909)
Cash flows from financing activities
Short-term borrowings, net 729 6,354 1,261
Issuance of long-term borrowings 28,238 12,740 6,694
Repayment of long-term borrowings, including the
current portion of long-term borrowings (7,471) (8,358) (4,208)
Derivative contracts with a financing element 231 ——
Common stock repurchased (939) (1,475) (1,438)
Dividends paid (350) (228) (231)
Proceeds from issuance of common stock 143 60 5
Net cash provided by financing activities 20,581 9,093 2,083
Net increase/(decrease) in cash and cash equivalents 2,265 (2,087) 3,039
Cash and cash equivalents, beginning of year 4,822 6,909 3,870
Cash and cash equivalents, end of year $ 7,087 $ 4,822 $ 6,909
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of capitalized interest, were $7.21 billion, $8.92 billion and $14.98 billion for the years ended November 2003,
November 2002 and November 2001, respectively.
Cash payments for income taxes, net of refunds, were $846 million, $1.22 billion and $1.30 billion for the years ended November 2003, November
2002 and November 2001, respectively.
Noncash activities:
The value of common stock issued in connection with business combinations was $165 million, $47 million and $223 million for the years ended
November 2003, November 2002 and November 2001, respectively. In addition, the firm assumed $584 million of long-term borrowings in connec-
tion with business combinations for the year ended November 2003.