Goldman Sachs 2002 Annual Report Download - page 80

contingent on all conditions to borrowing set forth in the
contract having been met. Since these commitments may
expire unused, the total commitment amount does not nec-
essarily reflect the actual future cash flow requirements.
The firm provides letters of credit issued by various banks
to counterparties in lieu of securities or cash to satisfy
various collateral and margin deposit requirements.
Letters of credit outstanding were $11.63 billion and
$11.50 billion as of November 2002 and November
2001, respectively.
The firm acts as an investor in merchant banking trans-
actions, which includes making long-term investments
in equity and debt securities in privately negotiated
transactions, corporate acquisitions and real estate
transactions. In connection with these activities, the
firm had commitments to invest up to $1.46 billion and
$1.63 billion in corporate and real estate merchant
banking investment funds as of November 2002 and
November 2001, respectively.
The firm had outstanding commitments and guarantees
of $136 million and $134 million relating primarily to
client and fund management activities as of November
2002 and November 2001, respectively. The firm also
had construction-related commitments of $301 million
and $199 million as of November 2002 and November
2001, respectively.
N O T E 8
EQUITY CAPITAL
Dividends declared per common share were $0.48 in each
of 2002, 2001 and 2000. On December 19, 2002, the
Board of Directors of Group Inc. (the Board) declared a div-
idend of $0.12 per share to be paid on February 27, 2003
to common shareholders of record on January 28, 2003.
On March 18, 2002 and on November 20, 2002, the
Board authorized the repurchase of an aggregate addi-
tional 30 million shares of common stock pursuant to the
firm’s existing share repurchase program. The total share
authorization under the repurchase program was 60 mil-
lion shares as of November 2002, of which approxi-
mately 40.66 million had been repurchased at a cost of
$3.45 billion. The average price paid per share for repur-
chased shares was $76.49, $88.22 and $99.90 for the
years ended November 2002, November 2001 and
November 2000, respectively.
On August 21, 2000, SMBC Capital Markets, Inc., for-
merly Sumitomo Bank Capital Markets, Inc., exchanged
all 7.4 million shares of its nonvoting common stock, par
value $0.01 per share, of Group Inc. for an equal number
of shares of voting common stock.
N otes to Consolidated Financial Statem ents
GO L D M A N SA CH S 2002 A N N UAL R EPO RT 77
N O T E 9
EARNINGS PER SHARE
The computations of basic and diluted EPS are set forth below:
YEAR ENDED NOVEMBER
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 2002 2001 2000
Numerator for basic and diluted EPS—earnings available to
common shareholders $2,114 $2,310 $3,067
Denominator for basic EPS—weighted average number of
common shares 495.6 509.7 484.6
Effect of dilutive securities
Restricted stock units 22.1 22.0 16.2
Stock options 7.4 10.1 10.7
Dilutive potential common shares 29.5 32.1 26.9
Denominator for diluted EPS—weighted average number of
common shares and dilutive potential common shares(1) 525.1 541.8 511.5
Basic EPS $ 4.27 $ 4.53 $ 6.33
Diluted EPS 4.03 4.26 6.00
(1) The diluted EPS computations do not include the antidilutive effect of the following options:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2002 2001 2000
Number of antidilutive options 28.1 0.7 —