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Notes to Consolidated Financial Statements
NOTE 5
Unsecured Long-Term Borrowings
The firm’s unsecured long-term borrowings extend through 2043 and consist principally of senior borrowings. As of November 2007
and November 2006, these borrowings were $164.17 billion and $122.84 billion, respectively.
Unsecured long-term borrowings are set forth below:
As of November
(in millions) 2007 2006
Fixed rate obligations
(1)
U.S. dollar $ 55,281 $ 41,719
Non-U.S. dollar 29,139 22,854
Floating rate obligations
(2)
U.S. dollar 47,308 38,342
Non-U.S. dollar 32,446 19,927
Total $164,174 $122,842
(1) As of November 2007 and November 2006, interest rates on U.S. dollar fixed rate obligations ranged from 3.88% to 10.04% and from 3.88% to 12.00%, respectively.
As of November 2007 and November 2006, interest rates on non-U.S. dollar fixed rate obligations ranged from 0.67% to 8.88% and from 0.31% to 8.88%, respectively.
(2) Floating interest rates generally are based on LIBOR or the federal funds target rate. Equity-linked and indexed instruments are included in floating rate obligations.
Unsecured long-term borrowings by maturity date are set forth below:
As of November
2007
(1) (2) 2006(1) (2)
U.S. Non-U.S. U.S. Non-U.S.
(in millions) Dollar Dollar Total Dollar Dollar Total
2008 $ — $ — $ — $14,848 $ 3,038 $ 17,886
2009 20,204 2,978 23,182 12,398 2,978 15,376
2010 7,989 5,714 13,703 5,034 4,945 9,979
2011 5,848 4,839 10,687 5,675 4,389 10,064
2012 14,913 3,695 18,608 4,500 2,098 6,598
2013-thereafter 53,635 44,359 97,994 37,606 25,333 62,939
Total $102,589 $61,585 $164,174 $80,061 $42,781 $122,842
(1) Unsecured long-term borrowings maturing within one year of the financial statement date and certain unsecured long-term borrowings that are redeemable within one
year of the financial statement date at the option of the holder are included as unsecured short-term borrowings in the consolidated statements of financial condition.
(2) Unsecured long-term borrowings that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates. Unsecured long-term
borrowings that are redeemable prior to maturity at the option of the holder are reflected at the dates such options become exercisable.
The firm enters into derivative contracts, such as interest rate
futures contracts, interest rate swap agreements, currency swap
agreements, commodity contracts and equity-linked and
indexed contracts, to effectively convert a substantial portion
of its unsecured long-term borrowings into U.S. dollar-based
floating rate obligations. Accordingly, the carrying value of
unsecured long-term borrowings approximated fair value as of
November 2007 and November 2006.
111Goldman Sachs 2007 Annual Report