Goldman Sachs 2012 Annual Report Download - page 165

Notes to Consolidated Financial Statements
Note 12.
Other Assets
Other assets are generally less liquid, non-financial assets.
The table below presents other assets by type.
As of December
in millions 2012 2011
Property, leasehold improvements and
equipment 1$ 8,217 $ 8,697
Goodwill and identifiable intangible assets 25,099 5,468
Income tax-related assets 35,620 5,017
Equity-method investments 4453 664
Miscellaneous receivables and other 520,234 3,306
Total $39,623 $23,152
1. Net of accumulated depreciation and amortization of $9.05 billion and
$8.46 billion as of December 2012 and December 2011, respectively.
2. Includes $149 million of intangible assets classified as held for sale. See
Note 13 for further information about goodwill and identifiable
intangible assets.
3. See Note 24 for further information about income taxes.
4. Excludes investments accounted for at fair value under the fair value option
where the firm would otherwise apply the equity method of accounting of
$5.54 billion and $4.17 billion as of December 2012 and December 2011,
respectively, which are included in “Financial instruments owned, at fair
value.” The firm has generally elected the fair value option for such
investments acquired after the fair value option became available.
5. Includes $16.77 billion of assets related to the firm’s reinsurance business
which were classified as held for sale as of December 2012.
Assets Held for Sale
In the fourth quarter of 2012, the firm classified its
reinsurance business within its Institutional Client Services
segment as held for sale. Assets related to this business of
$16.92 billion, consisting primarily of available-for-sale
securities and separate account assets at fair value, are
included in “Other assets.” Liabilities related to the
business of $14.62 billion are included in “Other liabilities
and accrued expenses.” See Note 8 for further information
about insurance-related assets and liabilities held for sale at
fair value.
The firm expects to complete the sale of a majority stake in
its reinsurance business in 2013 and does not expect to
recognize a material gain or loss upon the sale. Upon
completion of the sale, the firm will no longer consolidate
this business.
Property, Leasehold Improvements and Equipment
Property, leasehold improvements and equipment included
$6.20 billion and $6.48 billion as of December 2012 and
December 2011, respectively, related to property, leasehold
improvements and equipment that the firm uses in
connection with its operations. The remainder is held by
investment entities, including VIEs, consolidated by
the firm.
Substantially all property and equipment are depreciated on
a straight-line basis over the useful life of the asset.
Leasehold improvements are amortized on a straight-line
basis over the useful life of the improvement or the term of
the lease, whichever is shorter. Certain costs of software
developed or obtained for internal use are capitalized and
amortized on a straight-line basis over the useful life of
the software.
Property, leasehold improvements and equipment are tested
for impairment whenever events or changes in
circumstances suggest that an asset’s or asset group’s
carrying value may not be fully recoverable. The firm’s
policy for impairment testing of property, leasehold
improvements and equipment is the same as is used for
identifiable intangible assets with finite lives. See Note 13
for further information.
Goldman Sachs 2012 Annual Report 163