Goldman Sachs 2012 Annual Report Download - page 113

Consolidated Statements of Cash Flows
Year Ended December
in millions 2012 2011 2010
Cash flows from operating activities
Net earnings $ 7,475 $ 4,442 $ 8,354
Adjustments to reconcile net earnings to net cash provided by/(used for) operating activities
Depreciation and amortization 1,738 1,869 1,904
Deferred income taxes (356) 726 1,339
Share-based compensation 1,319 2,849 4,035
Gain on sale of hedge fund administration business (494) ——
Changes in operating assets and liabilities
Cash and securities segregated for regulatory and other purposes 10,817 (10,532) (17,094)
Net receivables from brokers, dealers and clearing organizations (2,838) (3,780) 201
Net payables to customers and counterparties (17,661) 13,883 (4,637)
Securities borrowed, net of securities loaned 23,031 8,940 19,638
Securities sold under agreements to repurchase, net of securities purchased under agreements to resell
and federal funds sold 53,527 122 (10,092)
Financial instruments owned, at fair value (48,783) 5,085 (9,231)
Financial instruments sold, but not yet purchased, at fair value (18,867) 4,243 11,602
Other, net 3,971 (5,346) (11,376)
Net cash provided by/(used for) operating activities 12,879 22,501 (5,357)
Cash flows from investing activities
Purchase of property, leasehold improvements and equipment (961) (1,184) (1,227)
Proceeds from sales of property, leasehold improvements and equipment 49 78 72
Business acquisitions, net of cash acquired (593) (431) (804)
Proceeds from sales of investments 1,195 2,645 1,371
Purchase of available-for-sale securities (5,220) (2,752) (1,885)
Proceeds from sales of available-for-sale securities 4,537 3,129 2,288
Loans held for investment, net (2,741) (856) (800)
Net cash provided by/(used for) investing activities (3,734) 629 (985)
Cash flows from financing activities
Unsecured short-term borrowings, net (1,952) (3,780) 1,196
Other secured financings (short-term), net 1,540 (1,195) 12,689
Proceeds from issuance of other secured financings (long-term) 4,687 9,809 5,500
Repayment of other secured financings (long-term), including the current portion (11,576) (8,878) (4,849)
Proceeds from issuance of unsecured long-term borrowings 27,734 29,169 20,231
Repayment of unsecured long-term borrowings, including the current portion (36,435) (29,187) (22,607)
Derivative contracts with a financing element, net 1,696 1,602 1,222
Deposits, net 24,015 7,540 (849)
Preferred stock repurchased —(3,857) —
Common stock repurchased (4,640) (6,048) (4,183)
Dividends and dividend equivalents paid on common stock, preferred stock and restricted stock units (1,086) (2,771) (1,443)
Proceeds from issuance of preferred stock, net of issuance costs 3,087 ——
Proceeds from issuance of common stock, including stock option exercises 317 368 581
Excess tax benefit related to share-based compensation 130 358 352
Cash settlement of share-based compensation (1) (40) (1)
Net cash provided by/(used for) financing activities 7,516 (6,910) 7,839
Net increase in cash and cash equivalents 16,661 16,220 1,497
Cash and cash equivalents, beginning of year 56,008 39,788 38,291
Cash and cash equivalents, end of year $ 72,669 $ 56,008 $ 39,788
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of capitalized interest, were $9.25 billion, $8.05 billion and $6.74 billion for the years ended December 2012, December 2011 and
December 2010, respectively.
Cash payments for income taxes, net of refunds, were $1.88 billion, $1.78 billion and $4.48 billion for the years ended December 2012, December 2011 and
December 2010, respectively.
Non-cash activities:
During the year ended December 2012, the firm assumed $77 million of debt in connection with business acquisitions. During the year ended December 2011, the
firm assumed $2.09 billion of debt and issued $103 million of common stock in connection with the acquisition of Goldman Sachs Australia Pty Ltd (GS Australia),
formerly Goldman Sachs & Partners Australia Group Holdings Pty Ltd. During the year ended December 2010, the firm assumed $90 million of debt in connection
with business acquisitions. In addition, in the first quarter of 2010, the firm recorded an increase of approximately $3 billion in both assets (primarily financial
instruments owned, at fair value) and liabilities (primarily unsecured short-term borrowings and other liabilities) upon adoption of Accounting Standards Update (ASU)
No. 2009-17, “Consolidations (Topic 810) — Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities.”
The accompanying notes are an integral part of these consolidated financial statements.
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