Goldman Sachs 2009 Annual Report Download - page 150

The  rm is subject to examination by the U.S. Internal Revenue Service (IRS) and other taxing authorities in jurisdictions where
the  rm has signi cant business operations, such as the United Kingdom, Japan, Hong Kong, Korea and various states, such as
NewYork. The tax years under examination vary by jurisdiction.
Below is a table of the earliest tax years that remain subject to examination by major jurisdiction:
Jurisdiction As of December2009
U.S. Federal 2005 (1)
NewYork State and City 2004 (2)
United Kingdom 2005
Japan 2005
Hong Kong 2003
Korea 2003
(1) IRS examination of  scal 2005, 2006 and 2007 began during 2008. IRS examination of  scal 2003 and 2004 has been completed but the liabilities for those
years are not yet  nal.
(2) NewYork State and City examination of  scal 2004, 2005 and 2006 began in 2008.
All years subsequent to the above years remain open to examination by the taxing authorities. The  rm believes that the liability
for unrecognized tax bene ts it has established is adequate in relation to the potential for additional assessments. The resolution
of tax matters is not expected to have a material effect on the  rm’s  nancial condition but may be material to the  rm’s operating
results for a particular period, depending, in part, upon the operating results for that period.
A reconciliation of the U.S. federal statutory income tax rate to the  rm’s effective income tax rate is set forth below:
Year Ended One Month Ended
December November November December
2009 2008 2007 2008
U.S. federal statutory income tax rate 35.0% 35.0% 35.0% 35.0%
Increase related to state and local taxes,
net of U.S. income tax effects 1.5 – 1.8 0.8
Tax credits (0.3) (4.3) (0.5) 0.8
Foreign operations (3.5) (29.8) (1.6) 4.3
Tax-exempt income, including dividends (0.4) (5.9) (0.4) 1.0
Other 0.2 5.6 (1) (0.2) (2) (3.9)
Effective income tax rate 32.5% 0.6% 34.1% 38.0%
(1) Primarily includes the effect of the liability increase as a result of adopting amended principles related to accounting for uncertainty in income taxes.
(2) Primarily includes the effect of audit settlements.
Tax bene ts/(provision) of approximately $(793)million, $645million, $908million and $0 for the years ended December2009,
November2008 and November 2007 and one month ended December 2008, respectively, related to the delivery of common stock
underlying RSUs and the exercise of options, were recorded in “Additional paid-in capital” in the consolidated statements of
 nancial condition and changes in shareholders’ equity.
Goldman Sachs 2009 Annual Report
148
Notes to Consolidated Financial Statements