Goldman Sachs 2007 Annual Report Download - page 123

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Notes to Consolidated Financial Statements
Other Liabilities
The following table sets forth the firm’s other liabilities and
accrued expenses by type:
As of November
(in millions) 2007 2006
Compensation and benefits $11,816 $ 9,165
Insurance-related liabilities
(1) 10,344 11,471
Minority interest
(2) 7,265 2,069
Income tax-related liabilities 2,546 2,639
Employee interests in
consolidated funds 2,187 2,690
Accrued expenses and
other payables 4,749 3,832
Total $38,907 $31,866
(1) Insurance-related liabilities are set forth in the table below:
As of November
(in millions) 2007 2006
Separate account liabilities $ 7,039 $ 7,957
Liabilities for future benefits
and unpaid claims 2,142 2,123
Contract holder account balances 937 1,134
Reserves for guaranteed minimum
death and income benefits 226 257
Total insurance-related liabilities $10,344 $11,471
Separate account liabilities are offset by separate account assets, representing
segregated contract holder funds under variable annuity and life insurance contracts.
Separate account assets are included in “Cash and securities segregated for
regulatory and other purposes” in the consolidated statements of financial condition.
Liabilities for future benefits and unpaid claims include liabilities arising from
reinsurance provided by the firm to other insurers. The firm had a receivable for
$1.30 billion and $1.33 billion as of November 2007 and November 2006, respectively,
related to such reinsurance contracts, which is reported in “Receivables from
customers and counterparties” in the consolidated statements of financial condition.
In addition, the firm has ceded risks to reinsurers related to certain of its liabilities
for future benefits and unpaid claims and had a receivable of $785 million and
$786 million as of November 2007 and November 2006, respectively, related to
such reinsurance contracts, which is reported in “Receivables from customers
and counterparties” in the consolidated statements of financial condition.
Contracts to cede risks to reinsurers do not relieve the firm from its obligations
to contract holders.
Reserves for guaranteed minimum death and income benefits represent a liability
for the expected value of guaranteed benefits in excess of projected annuity
account balances. These reserves are computed in accordance with AICPA SOP 03-1
and are based on total payments expected to be made less total fees expected
to be assessed over the life of the contract.
(2) Includes $5.95 billion and $619 million related to consolidated investment funds
as of November 2007 and November 2006, respectively.
NOTE 10
Other Assets and Other Liabilities
Other Assets
Other assets are generally less liquid, nonfinancial assets. The
following table sets forth the firm’s other assets by type:
As of November
(in millions) 2007 2006
Property, leasehold improvements
and equipment
(1) $ 8,975 $ 6,990
Goodwill and identifiable
intangible assets
(2) 5,092 5,686
Income tax-related assets 4,177 3,427
Equity-method investments
(3) 2,014 2,764
Miscellaneous receivables
and other 3,809 3,009
Total $24,067 $21,876
(1)
Net of accumulated depreciation and amortization of $5.88 billion and $5.06 billion
as of November 2007 and November 2006, respectively.
(2)
See Note 9 for further information regarding the firm’s goodwill and identifiable
intangible assets.
(3)
Excludes investments of $2.25 billion accounted for at fair value under SFAS
No. 159 as of November 2007, which are included in “Financial instruments
owned, at fair value” in the consolidated statements of financial condition.
121Goldman Sachs 2007 Annual Report