Goldman Sachs 2013 Annual Report Download - page 49

Management’s Discussion and Analysis
Segment Operating Results
The table below presents the net revenues, operating expenses and pre-tax earnings/(loss) of our segments.
Year Ended December
in millions 2013 2012 2011
Investment Banking Net revenues $ 6,004 $ 4,926 $ 4,355
Operating expenses 3,475 3,330 2,995
Pre-tax earnings $ 2,529 $ 1,596 $ 1,360
Institutional Client Services Net revenues $15,721 $18,124 $17,280
Operating expenses 11,782 12,480 12,837
Pre-tax earnings $ 3,939 $ 5,644 $ 4,443
Investing & Lending Net revenues $ 7,018 $ 5,891 $ 2,142
Operating expenses 2,684 2,666 2,673
Pre-tax earnings/(loss) $ 4,334 $ 3,225 $ (531)
Investment Management Net revenues $ 5,463 $ 5,222 $ 5,034
Operating expenses 4,354 4,294 4,020
Pre-tax earnings $ 1,109 $ 928 $ 1,014
Total Net revenues $34,206 $34,163 $28,811
Operating expenses 22,469 22,956 22,642
Pre-tax earnings $11,737 $11,207 $ 6,169
Total operating expenses in the table above include the
following expenses that have not been allocated to
our segments:
‰charitable contributions of $155 million for 2013,
$169 million for 2012 and $103 million for 2011; and
‰real estate-related exit costs of $19 million for 2013,
$17 million for 2012 and $14 million for 2011. Real
estate-related exit costs are included in “Depreciation and
amortization” and “Occupancy” in the consolidated
statements of earnings.
Net revenues in our segments include allocations of interest
income and interest expense to specific securities,
commodities and other positions in relation to the cash
generated by, or funding requirements of, such underlying
positions. See Note 25 to the consolidated financial
statements for further information about our
business segments.
The cost drivers of Goldman Sachs taken as a whole —
compensation, headcount and levels of business activity —
are broadly similar in each of our business segments.
Compensation and benefits expenses within our segments
reflect, among other factors, the overall performance of
Goldman Sachs as well as the performance of individual
businesses. Consequently, pre-tax margins in one segment
of our business may be significantly affected by the
performance of our other business segments. A discussion
of segment operating results follows.
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