Goldman Sachs 2007 Annual Report Download - page 137

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Notes to Consolidated Financial Statements
Segment Operating Results
Management believes that the following information provides a reasonable representation of each segment’s contribution to
consolidated pre-tax earnings and total assets:
As of or for the Year Ended November
(in millions) 2007 2006 2005
Investment Banking Net revenues $ 7,555 $ 5,629 $ 3,671
Operating expenses 4,985 4,062 3,258
Pre-tax earnings $ 2,570 $ 1,567 $ 413
Segment assets $ 5,526 $ 4,967 $ 4,869
Trading and Principal Investments Net revenues $ 31,226 $ 25,562 $ 16,818
Operating expenses 17,998 14,962 10,600
Pre-tax earnings $ 13,228 $ 10,600 $ 6,218
Segment assets $ 744,647 $566,499 $505,536
Asset Management and Securities Services Net revenues $ 7,206 $ 6,474 $ 4,749
Operating expenses 5,363 4,036 3,070
Pre-tax earnings $ 1,843 $ 2,438 $ 1,679
Segment assets $ 369,623 $266,735 $196,399
Total Net revenues
(1) $ 45,987 $ 37,665 $ 25,238
Operating expenses
(2) 28,383 23,105 16,965
Pre-tax earnings
(3) $ 17,604 $ 14,560 $ 8,273
Total assets $1,119,796 $838,201 $706,804
(1) Net revenues include net interest as set forth in the table below:
Year Ended November
(in millions) 2007 2006 2005
Investment Banking $ — $ 16 $ 72
Trading and Principal Investments 1,512 1,535 1,366
Asset Management and Securities Services 2,475 1,947 1,659
Total net interest $3,987 $3,498 $3,097
(2)
Operating expenses include net provisions for a number of litigation and regulatory proceedings of $37 million, $45 million and $37 million for the years ended November 2007,
November 2006 and November 2005, respectively, that have not been allocated to the firm’s segments.
(3) Pre-tax earnings include total depreciation and amortization as set forth in the table below:
Year Ended November
(in millions) 2007 2006 2005
Investment Banking $ 137 $119 $143
Trading and Principal Investments 845 725 565
Asset Management and Securities Services 185 151 146
Total depreciation and amortization $1,167 $995 $854
135Goldman Sachs 2007 Annual Report