Goldman Sachs 2003 Annual Report Download - page 87

Notes to Consolidated Financial Statements
GOLDMAN SACHS 2003 ANNUAL REPORT 85
Long-term borrowings by fiscal maturity date are set forth below:
AS OF NOVEMBER
2003(1)(2)(3) 2002(2)
U.S. NON-U.S. U.S. NON-U.S.
(IN MILLIONS) DOLLAR DOLLAR TOTAL DOLLAR DOLLAR TOTAL
2004 $— $— $— $ 6,846 $ 184 $ 7,030
2005 7,854 4,598 12,452 5,804 3,075 8,879
2006 6,133 1,576 7,709 1,575 1,020 2,595
2007 1,274 564 1,838 1,094 953 2,047
2008 3,105 2,546 5,651 239 593 832
2009-thereafter 23,145 6,687 29,832 14,167 3,161 17,328
Total $41,511 $15,971 $57,482 $29,725 $8,986 $38,711
(1) Long-term borrowings maturing within one year and certain long-term borrowings that may be redeemable within one year at the option of the
holder are included as short-term borrowings in the consolidated statements of financial condition.
(2) Long-term borrowings repayable at the option of the firm are reflected at their contractual maturity dates. Certain long-term borrowings
redeemable prior to maturity at the option of the holder are reflected at the date such options first become exercisable.
(3) Long-term borrowings have maturities that range from one to 30 years from the date of issue.
The firm enters into derivative contracts, such as interest
rate futures contracts, interest rate swap agreements, cur-
rency swap agreements and equity-linked contracts, to
effectively convert a substantial portion of its long-term
borrowings into U.S. dollar-based floating rate obliga-
tions. Accordingly, the aggregate carrying value of these
long-term borrowings and related hedges approximates
fair value.
The effective weighted average interest rates for long-term borrowings, after hedging activities, are set forth below:
AS OF NOVEMBER
2003 2002
($ IN MILLIONS) AMOUNT RATE AMOUNT RATE
Fixed rate obligations $ 1,517 7.43% $ 1,057 8.35%
Floating rate obligations 55,965 1.79 37,654 2.24
Total $57,482 1.94 $38,711 2.40
note 6
COMMITMENTS, CONTINGENCIES AND
GUARANTEES
Commitments
The firm had commitments to enter into forward secured
financing transactions, including certain repurchase and
resale agreements and secured borrowing and lending
arrangements, of $35.25 billion and $40.04 billion as of
November 2003 and November 2002, respectively.
In connection with its lending activities, the firm had out-
standing commitments of $15.83 billion and $9.41 billion
as of November 2003 and November 2002, respectively.
The firm’s commitments to extend credit are agreements
to lend to counterparties that have fixed termination
dates and are contingent on all conditions to borrowing
set forth in the contract having been met. Since these
commitments may expire unused, the total commitment
amount does not necessarily reflect the actual future
cash flow requirements. As of November 2003, $4.32
billion of the firm’s outstanding commitments have been
issued through the William Street credit extension pro-
gram.(1) Substantially all of the credit risk associated
(1) These commitments were primarily issued through William Street Commitment Corporation (Commitment Corp), a consolidated wholly owned
subsidiary of Group Inc. Another consolidated wholly owned subsidiary, Funding Corp, was formed to raise funding to support the William Street
credit extension program. Commitment Corp and Funding Corp are each separate corporate entities, with assets and liabilities that are legally sep-
arated from the other assets and liabilities of the firm. Accordingly, the assets of Commitment Corp and of Funding Corp will not be available to
their respective shareholders until the claims of their respective creditors have been paid. In addition, no affiliate of either Commitment Corp or
Funding Corp, except in limited cases as expressly agreed in writing, is responsible for any obligation of either entity.