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GOLDMAN฀SAC H S ฀ 2004฀ A N N U A L ฀ R E P ORT ฀ ฀ ฀ 9 3
notes฀to฀consolidated฀financial฀statements
GOLDMAN฀SAC H S ฀ 2004฀ A N N U A L ฀ R E P ORT ฀ ฀ ฀ 9 3
Identifiable intangible assets are amortized over their estimated
useful lives. The weighted average remaining life of the firm’s
identifiable intangibles is approximately 17 years. There were
no identifiable intangible assets that were considered to be
indefinite-lived and, therefore, not subject to amortization.
Amortization expense associated with identifiable intan-
gible assets was $125 million, $319 million (including
$188 million of impairment charges) and $127 million for
the fiscal years ended November 2004, November 2003 and
November 2002, respectively.
Estimated future amortization expense for existing identifiable
intangible assets is set forth below:
(IN฀MILLIONS)
2005 $123
2006 123
2007 118
2008 91
2009 90
NOTE฀9
Goodwill and Identifiable Intangible Assets
GOODWILL
As of November 2004 and November 2003, goodwill of $3.18 billion and $3.16 billion, respectively, was included in “Other
assets” in the consolidated statements of financial condition.
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)฀ 2004฀ 2003
Customer lists(1) Gross carrying amount $1,021 $1,021
Accumulated amortization (193) (141)
Net carrying amount $฀฀฀828 $ ฀฀880
New York Stock Gross carrying amount $฀฀฀714 $ ฀฀฀714
Exchange (NYSE) Accumulated amortization (107) (78)
specialist rights Net carrying amount $฀฀฀฀607 $฀฀฀636
Exchange-traded Gross carrying amount $฀฀฀145฀฀(3) $฀฀฀312
fund (ETF) and option Accumulated amortization (24)(3) (182)
specialist rights Net carrying amount $฀฀฀121 $฀฀฀130
Other(2) Gross carrying amount $฀฀฀298฀฀(3) $฀฀฀351
Accumulated amortization (165)(3) (177)
Net carrying amount $฀฀฀133 $฀฀฀174
Total Gross carrying amount $2,178 $2,398
Accumulated amortization (489) (578)(4)
Net carrying amount $1,689 $1,820
(1)฀฀Primarily฀includes฀the฀firm’s฀clearance฀and฀execution฀and฀Nasdaq฀customer฀lists฀acquired฀in฀the฀firm’s฀combination฀with฀SLK฀LLC฀(SLK)฀and฀financial฀counseling฀
customer฀lists฀acquired฀in฀the฀firm’s฀combination฀with฀The฀Ayco฀Company,฀L.P.
(2)฀฀Primarily฀includes฀technology-related฀assets฀acquired฀in฀the฀firm’s฀combination฀with฀SLK.
(3)฀฀Gross฀carrying฀amount฀and฀accumulated฀amortization฀exclude฀amounts฀related฀to฀assets฀that฀were฀no฀longer฀in฀service฀at฀the฀beginning฀of฀the฀period.
(4)฀฀Accumulated฀amortization฀includes฀$188฀million฀of฀impairment฀charges฀primarily฀related฀to฀option฀specialist฀rights.
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