Goldman Sachs 2007 Annual Report Download - page 91

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Consolidated Statements of Cash Flows
Year Ended November
(in millions) 2007 2006 2005
Cash flows from operating activities
Net earnings $ 11,599 $ 9,537 $ 5,626
Non-cash items included in net earnings
Depreciation and amortization 916 749 689
Amortization of identifiable intangible assets 251 246 165
Deferred income taxes 129 (1,505) (450)
Share-based compensation 4,465 3,654 1,756
Changes in operating assets and liabilities
Cash and securities segregated for regulatory and other purposes (39,079) (21,044) (3,226)
Net receivables from brokers, dealers and clearing organizations (3,811) (1,794) 1,322
Net payables to customers and counterparties 53,857 9,823 2,953
Securities borrowed, net of securities loaned (51,655) (28,666) (32,777)
Financial instruments sold under agreements to repurchase,
net of financial instruments purchased under agreements to resell 8,095 (42) 62,269
Financial instruments owned, at fair value (118,864) (48,479) (66,899)
Financial instruments sold, but not yet purchased, at fair value 57,938 6,384 16,974
Other, net 7,962 12,823 (815)
Net cash used for operating activities (68,197) (58,314) (12,413)
Cash flows from investing activities
Purchase of property, leasehold improvements and equipment (2,130) (1,744) (1,421)
Proceeds from sales of property, leasehold improvements and equipment 93 69 639
Business acquisitions, net of cash acquired (1,900) (1,661) (556)
Proceeds from sales of investments 4,294 2,114 274
Purchase of available-for-sale securities (872) (12,922) —
Proceeds from sales of available-for-sale securities 911 4,396 —
Net cash provided by/(used for) investing activities 396 (9,748) (1,064)
Cash flows from financing activities
Unsecured short-term borrowings, net 12,262 (4,031) (5)
Other secured financings (short-term), net 2,780 16,856 2,238
Proceeds from issuance of other secured financings (long-term) 21,703 14,451 7,279
Repayment of other secured financings (long-term), including the current portion (7,355) (7,420) (5,941)
Proceeds from issuance of unsecured long-term borrowings 57,516 48,839 35,898
Repayment of unsecured long-term borrowings, including the current portion (14,823) (13,510) (16,399)
Derivative contracts with a financing element, net 4,814 3,494 1,060
Bank deposits, net 4,673 10,697 —
Common stock repurchased (8,956) (7,817) (7,108)
Dividends and dividend equivalents paid on common stock,
preferred stock and restricted stock units (831) (754) (511)
Proceeds from issuance of common stock 791 1,613 1,143
Proceeds from issuance of preferred stock, net of issuance costs — 1,349 1,719
Excess tax benefit related to share-based compensation 817 464 —
Cash settlement of share-based compensation (1) (137) —
Net cash provided by financing activities 73,390 64,094 19,373
Net increase/(decrease) in cash and cash equivalents 5,589 (3,968) 5,896
Cash and cash equivalents, beginning of year 6,293 10,261 4,365
Cash and cash equivalents, end of year $ 11,882 $ 6,293 $ 10,261
Supplemental Disclosures:
Cash payments for interest, net of capitalized interest, were $40.74 billion, $30.98 billion and $17.49 billion for the years ended November 2007, November 2006 and
November 2005, respectively.
Cash payments for income taxes, net of refunds, were $5.78 billion, $4.56 billion and $2.47 billion for the years ended November 2007, November 2006 and
November 2005, respectively.
Non-cash activities:
The firm assumed $409 million, $498 million and $1.15 billion of debt in connection with business acquisitions for the years ended November 2007, November 2006 and
November 2005, respectively. For the year ended November 2007, the firm issued $17 million of common stock in connection with business acquisitions.
The accompanying notes are an integral part of these consolidated financial statements.
89Goldman Sachs 2007 Annual Report