Goldman Sachs 2007 Annual Report Download - page 121

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Notes to Consolidated Financial Statements
NOTE 8
Earnings Per Common Share
The computations of basic and diluted earnings per common share are set forth below:
Year Ended November
(in millions, except per share amounts) 2007 2006 2005
Numerator for basic and diluted EPS
—
net earnings
applicable to common shareholders $11,407 $9,398 $5,609
Denominator for basic EPS
—
weighted average
number of common shares 433.0 449.0 478.1
Effect of dilutive securities
Restricted stock units 13.6 13.6 9.9
Stock options 14.6 14.8 12.2
Dilutive potential common shares 28.2 28.4 22.1
Denominator for diluted EPS
—
weighted average number of
common shares and dilutive potential common shares
(1) 461.2 477.4 500.2
Basic EPS $ 26.34 $20.93 $11.73
Diluted EPS 24.73 19.69 11.21
(1) The diluted EPS computations do not include the anti-dilutive effect of the following options:
Year Ended November
(in millions) 2007 2006 2005
Number of anti-dilutive options, end of period — — 1
NOTE 9
Goodwill and Identifiable Intangible Assets
Goodwill
The following table sets forth the carrying value of the firm’s goodwill by operating segment, which is included in “Other assets”
in the consolidated statements of financial condition:
As of November
(in millions) 2007 2006
Investment Banking
Financial Advisory $ — $ —
Underwriting 125 125
Trading and Principal Investments
FICC 123 136
Equities
(1)
2,381 2,381
Principal Investments 11 4
Asset Management and Securities Services
Asset Management
(2)
564 421
Securities Services 117 117
Total $3,321 $3,184
(1) Primarily related to SLK LLC (SLK).
(2) Primarily related to The Ayco Company, L.P. (Ayco). The increase in goodwill from November 2006 relates to the firm’s acquisition of Macquarie
—
I M M
Investment Management.
119Goldman Sachs 2007 Annual Report