Goldman Sachs 2013 Annual Report Download - page 76

Management’s Discussion and Analysis
Share Repurchase Program. We seek to use our share
repurchase program to help maintain the appropriate level
of common equity. The repurchase program is effected
primarily through regular open-market purchases, the
amounts and timing of which are determined primarily by
our current and projected capital positions, but which may
also be influenced by general market conditions and the
prevailing price and trading volumes of our common stock.
On April 15, 2013, the Board of Directors of Group Inc.
(Board) authorized the repurchase of an additional
75.0 million shares of common stock pursuant to the firm’s
existing share repurchase program. As of December 2013,
under the share repurchase program approved by the
Board, we can repurchase up to 57.2 million additional
shares of common stock; however, any such repurchases
are subject to the approval of the Federal Reserve Board.
See “Market for Registrant’s Common Equity, Related
Stockholder Matters and Issuer Purchases of Equity
Securities” in Part II, Item 5 of the 2013 Form 10-K and
Note 19 to the consolidated financial statements for
additional information on our repurchase program and see
above for information about the annual CCAR.
Other Capital Metrics
The table below presents information on our shareholders’
equity and book value per common share.
As of December
in millions, except per share amounts 2013 2012
Total shareholders’ equity $78,467 $75,716
Common shareholders’ equity 71,267 69,516
Tangible common shareholders’ equity 66,891 64,417
Book value per common share 152.48 144.67
Tangible book value per common share 143.11 134.06
Tangible common shareholders’ equity. Tangible
common shareholders’ equity equals total shareholders’
equity less preferred stock, goodwill and identifiable
intangible assets. We believe that tangible common
shareholders’ equity is meaningful because it is a measure
that we and investors use to assess capital adequacy.
Tangible common shareholders’ equity is a non-GAAP
measure and may not be comparable to similar non-GAAP
measures used by other companies.
The table below presents the reconciliation of total
shareholders’ equity to tangible common
shareholders’ equity.
As of December
in millions 2013 2012
Total shareholders’ equity $78,467 $75,716
Deduct: Preferred stock (7,200) (6,200)
Common shareholders’ equity 71,267 69,516
Deduct: Goodwill and identifiable
intangible assets (4,376) (5,099)
Tangible common shareholders’ equity $66,891 $64,417
Book value and tangible book value per common
share. Book value and tangible book value per common
share are based on common shares outstanding, including
restricted stock units granted to employees with no future
service requirements, of 467.4 million and 480.5 million as
of December 2013 and December 2012, respectively. We
believe that tangible book value per common share
(tangible common shareholders’ equity divided by common
shares outstanding) is meaningful because it is a measure
that we and investors use to assess capital adequacy.
Tangible book value per common share is a non-GAAP
measure and may not be comparable to similar non-GAAP
measures used by other companies.
74 Goldman Sachs 2013 Annual Report