Goldman Sachs 2009 Annual Report Download - page 89

Goldman Sachs 2009 Annual Report
87
Consolidated Statements of Changes in Shareholders’ Equity
Year Ended
(inmillions)
December
2009 (1)
November
2008
November
2007
Preferred stock
Balance, beginning of year $ 16,483 $ 3,100 $ 3,100
Issued –13,367 –
Accretion 48 4–
Repurchased (9,574) ––
Balance, end of year 6,957 16,471 3,100
Common stock
Balance, beginning of year 766
Issued 11–
Balance, end of year 876
Restricted stock units and employee stock options
Balance, beginning of year 9,463 9,302 6,290
Issuance and amortization of restricted stock units and employee stock options 2,064 2,254 4,684
Delivery of common stock underlying restricted stock units (5,206) (1,995) (1,548)
Forfeiture of restricted stock units and employee stock options (73) (274) (113)
Exercise of employee stock options (3) (3) (11)
Balance, end of year 6,245 9,284 9,302
Additional paid-in capital
Balance, beginning of year 31,070 22,027 19,731
Issuance of common stock 5,750 5,750 –
Issuance of common stock warrants –1,633 –
Repurchase of common stock warrants (1,100) ––
Delivery of common stock underlying restricted stock units and proceeds from the
exercise of employee stock options 5,708 2,331 2,338
Cancellation of restricted stock units in satisfaction of withholding tax requirements (863) (1,314) (929)
Stock purchase contract fee related to automatic preferred enhanced capital securities –– (20)
Preferred and common stock issuance costs –(1) –
Excess net tax bene t/(provision) related to share-based compensation (793) 645 908
Cash settlement of share-based compensation (2) – (1)
Balance, end of year 39,770 31,071 22,027
Retained earnings
Balance, beginning of year, as previously reported 38,579 38,642 27,868
Cumulative effect from adoption of amended principles related to accounting for
uncertainty in income taxes –(201) –
Cumulative effect of adjustment from adoption of amended accounting principles
related to fair value measurements, net of tax ––51
Cumulative effect of adjustment from adoption of amended accounting principles
related to the fair value option, net of tax –– (45)
Balance, beginning of year, after cumulative effect of adjustments 38,579 38,441 27,874
Net earnings 13,385 2,322 11,599
Dividends and dividend equivalents declared on common stock and restricted stock units (588) (642) (639)
Dividends declared on preferred stock (1,076) (204) (192)
Preferred stock accretion (48) (4) –
Balance, end of year 50,252 39,913 38,642
Accumulated other comprehensive income/(loss)
Balance, beginning of year (372) (118) 21
Adjustment from adoption of amended accounting principles related to employers’
accounting for de ned bene t pension and other postretirement plans, net of tax –– (194)
Currency translation adjustment, net of tax (70) (98) 39
Pension and postretirement liability adjustments, net of tax (17) 69 38
Net gains/(losses) on cash  ow hedges, net of tax –– (2)
Net unrealized gains/(losses) on available-for-sale securities, net of tax 97 (55) (12)
Reclassi cation to retained earnings from adoption of amended accounting principles
related to the fair value option, net of tax –– (8)
Balance, end of year (362) (202) (118)
Common stock held in treasury, at cost
Balance, beginning of year (32,176) (30,159) (21,230)
Repurchased (2)
(2) (2,037) (8,956)
Reissued 22 21 27
Balance, end of year (32,156) (32,175) (30,159)
Total shareholders’ equity $ 70,714 $ 64,369 $ 42,800
(1) In connection with becoming a bank holding company, the  rm was required to change its  scal year-end from Novemberto December. The beginning of the
year ended December2009 is December 27, 2008.
(2) Relates primarily to repurchases of common stock by a broker-dealer subsidiary to facilitate customer transactions in the ordinary course of business and shares
withheld to satisfy withholding tax requirements.
The accompanying notes are an integral part of these consolidated  nancial statements.