Goldman Sachs 2002 Annual Report Download - page 90

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Segment Operating Results
Management believes that the following information provides a reasonable representation of each segment's contri-
bution to consolidated pre-tax earnings and total assets:
AS OF AND FOR YEAR ENDED NOVEMBER
(IN MILLIONS) 2002 2001 2000
Investment Banking Net revenues(1) $ 2,830 $ 3,836 $ 5,371
Operating expenses(2) 2,454 3,117 3,645
Pre-tax earnings $ 376 $ 719 $ 1,726
Segment assets $ 4,555 $ 3,938 $ 2,333
Trading and Net revenues(1) $ 5,249 $ 6,349 $ 6,627
Principal Investments Operating expenses(2) 4,273 5,134 4,199
Pre-tax earnings $ 976 $ 1,215 $ 2,428
Segment assets $184,895 $164,965 $143,900
Asset Management Net revenues(1) $ 5,907 $ 5,626 $ 4,592
and Securities Services Operating expenses(2) 3,794 3,501 3,008
Pre-tax earnings $ 2,113 $ 2,125 $ 1,584
Segment assets $165,328 $142,477 $137,091
Total Net revenues(1) $ 13,986 $ 15,811 $ 16,590
Operating expenses(2)(3) 10,733 12,115 11,570
Pre-tax earnings $ 3,253 $ 3,696 $ 5,020
Total assets(4) $355,574 $312,218 $284,410
(1) Net revenues include net interest as set forth in the table below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2002 2001 2000
Investment Banking $ 258 $159 $32
Trading and Principal Investments 1,186 95 99
Asset Management and Securities Services 957 1,039 855
Total net interest $2,401 $1,293 $986
(2) Operating expenses include depreciation and amortization, including the amortization of goodwill and intangible assets, as set forth in the table
below:
YEAR ENDED NOVEMBER
(IN MILLIONS) 2002 2001 2000
Investment Banking $140 $172 $148
Trading and Principal Investments 293 386 188
Asset Management and Securities Services 311 315 150
Total depreciation and amortization $744 $873 $486
(3) Includes the following expenses that have not been allocated to the firm’s segments: (i) amortization of employee initial public offering awards
of $212 million, $363 million and $428 million for the years ended November 2002, November 2001 and November 2000, respectively, and
(ii) nonrecurring acquisition awards of $290 million related to the firm’s combination with SLK for the year ended November 2000.
(4) Includes deferred tax assets relating to the firm’s conversion to corporate form and certain assets that management believes are not allocable to
a particular segment.
N otes to Consolidated Financial Statem ents
GO L D M A N SA CH S 2002 A N N UAL R EPO RT 87