Goldman Sachs 2012 Annual Report Download - page 175

Notes to Consolidated Financial Statements
Note 17.
Other Liabilities and Accrued Expenses
The table below presents other liabilities and accrued
expenses by type.
As of December
in millions 2012 2011
Compensation and benefits $ 8,292 $ 5,701
Insurance-related liabilities 110,274 18,614
Noncontrolling interests 2508 1,450
Income tax-related liabilities 32,724 533
Employee interests in consolidated funds 246 305
Subordinated liabilities issued
by consolidated VIEs 1,360 1,090
Accrued expenses and other 418,991 4,108
Total $42,395 $31,801
1. As of December 2012, certain insurance-related liabilities were classified as
held for sale and included within “Accrued expenses and other.” See
Note 12 for further information.
2. Includes $419 million and $1.17 billion related to consolidated investment
funds as of December 2012 and December 2011, respectively.
3. See Note 24 for further information about income taxes.
4. Includes $14.62 billion of liabilities related to the firm’s reinsurance business
which were classified as held for sale as of December 2012. See Note 12 for
further information.
The table below presents insurance-related liabilities by type.
As of December
in millions 2012 2011
Separate account liabilities $—$ 3,296
Liabilities for future benefits
and unpaid claims 10,274 14,213
Contract holder account balances —835
Reserves for guaranteed minimum death
and income benefits —270
Total 1$10,274 $18,614
1. As of December 2012, certain insurance-related liabilities were classified as
held for sale and included within “Accrued expenses and other.” See
Note 12 for further information.
Separate account liabilities are supported by separate
account assets, representing segregated contract holder
funds under variable annuity and life insurance contracts.
As of December 2011, separate account assets were
included in “Cash and securities segregated for regulatory
and other purposes.”
Liabilities for future benefits and unpaid claims include
liabilities arising from reinsurance provided by the firm to
other insurers. The firm had a receivable of $1.30 billion as
of December 2011 related to such reinsurance contracts,
which was reported in “Receivables from customers and
counterparties.” 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
$648 million as of December 2011 related to such
reinsurance contracts, which was reported in “Receivables
from customers and counterparties.” Contracts to cede
risks to reinsurers do not relieve the firm of its obligations
to contract holders. Liabilities for future benefits and
unpaid claims include $10.27 billion and $8.75 billion
carried at fair value under the fair value option as of
December 2012 and December 2011, respectively.
Contract holder account balances primarily include fixed
annuities under reinsurance contracts.
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 based on total payments
expected to be made less total fees expected to be assessed
over the life of the contract. As of December 2011, such
reserves were related to $5.52 billion of contract holder
account balances. The net amount at risk, representing
guaranteed minimum death and income benefits in excess
of contract holder account balances, was $1.51 billion as of
December 2011. The weighted average attained age of these
contract holders was 69 years as of December 2011.
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