Goldman Sachs 2002 Annual Report Download - page 81

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N O T E 10
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
Goodwill
As of November 2002, goodwill of $2.86 billion was
included in “Other assets” in the consolidated statement
of financial condition. Prior to December 1, 2001, good-
will was amortized over periods of 15 to 20 years on a
straight-line basis. The following table sets forth reported
net earnings and EPS, as adjusted to exclude goodwill
amortization expense:
YEAR ENDED NOVEMBER
(IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2001 2000
Net earnings, as reported $2,310 $3,067
Net earnings, as adjusted 2,404 3,096
EPS, as reported:
Basic $4.53 $ 6.33
Diluted 4.26 6.00
EPS, as adjusted:
Basic $4.72 $ 6.39
Diluted 4.44 6.05
Identifiable Intangible Assets
The following table sets forth the gross carrying amount,
accumulated amortization and net carrying amount of
identifiable intangible assets:
AS OF NOVEMBER
(IN MILLIONS) 2002 2001
Gross carrying amount $2,239 $2,092
Accumulated amortization (259) (132)
Net carrying amount $1,980 $1,960
N otes to Consolidated Financial Statem ents
78 G O L D M A N SA CH S 2002 AN N UA L R EPO RT
Identifiable intangible assets consist primarily of special-
ist rights and customer lists and are amortized over a
weighted average life of approximately 21 years.
Amortization expense associated with identifiable intan-
gible assets was $127 million, $115 million and $7 mil-
lion for the fiscal years ended November 2002,
November 2001 and November 2000, respectively.
Estimated amortization expense for existing identifiable
intangible assets is $129 million for each of the fiscal
years ending November 2003 through November 2007.
N O T E 11
EMPLOYEE BENEFIT PLANS
The firm sponsors various pension plans and certain
other postretirement benefit plans, primarily healthcare
and life insurance, which cover most employees world-
wide. The firm also provides certain benefits to former or
inactive employees prior to retirement. A summary of
these plans is set forth below:
Defined Benefit Pension Plans and
Postretirement Plans
The firm maintains a defined benefit pension plan for
substantially all U.S. employees. Employees of certain
non-U.S. subsidiaries participate in various local defined
benefit plans. These plans generally provide benefits
based on years of credited service and a percentage of the
employee’s eligible compensation. In addition, the firm
has unfunded postretirement benefit plans that provide
medical and life insurance for eligible retirees, employees
and dependents in the United States.