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GOLDMAN฀SAC H S ฀ 2 0 0 4 ฀ANNUAL฀ R E P O RT฀฀฀105
management’s฀discussion฀and฀analysis
notes฀to฀consolidated฀financial฀statements
GOLDMAN฀SAC H S ฀ 2 0 0 4 ฀ANNUAL฀ R E P O RT฀฀฀105
GEOGRAPHIC฀INFORMATION
Due to the highly integrated nature of international financial
markets, the firm manages its businesses based on the profit-
ability of the enterprise as a whole. Accordingly, management
believes that profitability by geographic region is not necessarily
meaningful.
The following table sets forth the total net revenues, pre-tax earnings and identifiable assets of the firm and its consolidated
subsidiaries by geographic region allocated on the basis described above:
฀ ฀ AS฀OF฀OR฀FOR฀THE฀YEAR฀ENDED฀NOVEMBER
(IN฀MILLIONS)฀ 2004฀ 2003฀ 2002
Net revenues
United States $฀ ฀12,932 $฀ ฀10,040฀ $฀ ฀ ฀8,633
Other Americas 28 231฀ 352
United Kingdom 4,335 3,610฀ 2,991
Other Europe 887 427฀ 479
Asia 2,368 1,704฀ 1,531
Total net revenues $฀ ฀20,550 $฀ ฀16,012฀ $฀ ฀13,986
Pre-tax earnings
United States $฀฀฀฀฀฀4,761 $฀ ฀ ฀3,105฀ $฀ ฀ ฀1,850
Other Americas (6) 217฀ 293
United Kingdom 497 610฀ 525
Other Europe 487 90฀ 173
Asia 1,121 658฀ 624
Other(1)฀฀ (184) (235)฀ (212)
Total pre-tax earnings $฀฀฀6,676 $฀ ฀ ฀4,445฀ $฀ ฀ ฀3,253
Identifiable assets
United States $฀528,077 $฀400,996฀ $฀393,333
Other Americas 1,626 1,241฀ 3,284
United Kingdom 240,748 184,476฀ 144,608
Other Europe 12,468 8,022฀ 8,573
Asia 37,293 26,650฀ 25,422
Eliminations and other(2) (288,833) (217,586)฀ (219,646)
Total identifiable assets $฀531,379 $฀403,799฀ $฀355,574
(1)฀฀Includes฀the฀following฀expenses฀that฀have฀not฀been฀allocated฀to฀the฀firm’s฀segments:฀(i)฀the฀amortization฀of฀employee฀initial฀public฀offering฀awards,฀net฀of฀for-
feitures,฀of฀$19฀million,฀$80฀million฀and฀$212฀million฀for฀the฀years฀ended฀November฀2004,฀November฀2003฀and฀November฀2002,฀respectively,฀(ii)฀net฀provisions฀
for฀a฀number฀of฀litigation฀and฀regulatory฀proceedings฀of฀$103฀million฀and฀$155฀million฀for฀the฀years฀ended฀November฀2004฀and฀November฀2003,฀respectively,฀
and฀(iii)฀$62฀million฀in฀connection฀with฀the฀establishment฀of฀Goldman฀Sachs฀Gao฀Hua฀Securities฀Company฀Limited,฀an฀investment฀banking฀and฀securities฀venture฀
in฀China,฀for฀the฀year฀ended฀November฀2004.
(2)฀฀Reflects฀eliminations฀and฀certain฀assets฀that฀are฀not฀allocable฀to฀a฀particular฀geographic฀region.
The firm’s revenues, expenses and identifiable assets are gener-
ally allocated based on the country of domicile of the legal
entity providing the service.
BES฀•฀Phone฀(201)฀635-5240฀฀•฀FAX฀(201)฀635-5199
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