Goldman Sachs 2012 Annual Report Download - page 47

Management’s Discussion and Analysis
3. Excluding the impact of the $465 million related to the U.K. bank payroll tax, the $550 million related to the SEC settlement and the $305 million impairment of our
NYSE DMM rights, diluted earnings per common share were $15.22 and ROE was 13.1% for 2010. We believe that presenting our results for 2010 excluding the
impact of these items is meaningful, as it increases the comparability of period-to-period results. Diluted earnings per common share and ROE excluding these
items are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. The tables below present the calculation of
net earnings applicable to common shareholders, diluted earnings per common share and average common shareholders’ equity excluding the impact of
these items.
in millions, except per share amount
Year Ended
December 2010
Net earnings applicable to common shareholders $ 7,713
Impact of the U.K. bank payroll tax 465
Pre-tax impact of the SEC settlement 550
Tax impact of the SEC settlement (6)
Pre-tax impact of the NYSE DMM rights impairment 305
Tax impact of the NYSE DMM rights impairment (118)
Net earnings applicable to common shareholders, excluding the impact of the U.K. bank payroll tax,
the SEC settlement and the NYSE DMM rights impairment 8,909
Divided by: average diluted common shares outstanding 585.3
Diluted earnings per common share, excluding the impact of the U.K. bank payroll tax, the SEC settlement
and the NYSE DMM rights impairment $ 15.22
in millions
Average for the
Year Ended
December 2010
Total shareholders’ equity $74,257
Preferred stock (6,957)
Common shareholders’ equity 67,300
Impact of the U.K. bank payroll tax 359
Impact of the SEC settlement 293
Impact of the NYSE DMM rights impairment 14
Common shareholders’ equity, excluding the impact of the U.K. bank payroll tax, the SEC settlement
and the NYSE DMM rights impairment $67,966
Goldman Sachs 2012 Annual Report 45