Goldman Sachs 2012 Annual Report Download - page 185

Notes to Consolidated Financial Statements
In March 2011, the firm provided notice to Berkshire
Hathaway Inc. and certain of its subsidiaries (collectively,
Berkshire Hathaway) that it would redeem in full the
50,000 shares of the firm’s 10% Cumulative Perpetual
Preferred Stock, Series G (Series G Preferred Stock) held by
Berkshire Hathaway for the stated redemption price of
$5.50 billion ($110,000 per share), plus accrued and
unpaid dividends. In connection with this notice, the firm
recognized a preferred dividend of $1.64 billion (calculated
as the difference between the carrying value and the
redemption value of the preferred stock), which was
recorded as a reduction to earnings applicable to common
shareholders for the first quarter of 2011. The redemption
also resulted in the acceleration of $24 million of preferred
dividends related to the period from April 1, 2011 to the
redemption date, which was included in the firm’s results
during the three months ended March 2011. The Series G
Preferred Stock was redeemed on April 18, 2011. Berkshire
Hathaway continues to hold a five-year warrant, issued in
October 2008, to purchase up to 43.5 million shares of
common stock at an exercise price of $115.00 per share.
On January 9, 2013, Group Inc. declared dividends of
$234.38, $387.50, $250.00, $250.00 and $437.99 per
share of Series A Preferred Stock, Series B Preferred Stock,
Series C Preferred Stock, Series D Preferred Stock and
Series I Preferred Stock, respectively, to be paid on
February 11, 2013 to preferred shareholders of record on
January 27, 2013. In addition, the firm declared dividends
of $977.78 per each share of Series E Preferred Stock and
Series F Preferred Stock, to be paid on March 1, 2013 to
preferred shareholders of record on February 14, 2013.
The table below presents preferred dividends declared on
preferred stock.
Year Ended December
2012 2011 2010
per share in millions per share in millions per share in millions
Series A $ 960.94 $ 29 $ 950.51 $ 28 $ 950.51 $ 28
Series B 1,550.00 50 1,550.00 50 1,550.00 50
Series C 1,025.01 8 1,013.90 8 1,013.90 8
Series D 1,025.01 55 1,013.90 55 1,013.90 55
Series E 2,055.56 36 —— ——
Series F 1,000.00 5 —— ——
Series G 1——2,500.00 125 10,000.00 500
Total $183 $266 $641
1. Amount for the year ended December 2011 excludes preferred dividends related to the redemption of the firm’s Series G Preferred Stock.
Accumulated Other Comprehensive Income/(Loss)
The tables below present accumulated other comprehensive income/(loss) by type.
As of December 2012
in millions
Currency
translation
adjustment,
net of tax
Pension and
postretirement
liability adjustments,
net of tax
Net unrealized
gains/(losses) on
available-for-sale
securities, net of tax
Accumulated other
comprehensive
income/(loss),
net of tax
Balance, beginning of year $(225) $(374) $ 83 $(516)
Other comprehensive income/(loss) (89) 168 244 323
Balance, end of year $(314) $(206) $327 1$(193)
As of December 2011
in millions
Currency
translation
adjustment,
net of tax
Pension and
postretirement
liability adjustments,
net of tax
Net unrealized
gains/(losses) on
available-for-sale
securities, net of tax
Accumulated other
comprehensive
income/(loss),
net of tax
Balance, beginning of year $(170) $(229) $113 $(286)
Other comprehensive loss (55) (145) (30) (230)
Balance, end of year $(225) $(374) $ 83 1$(516)
1. Substantially all consists of net unrealized gains on securities held by the firm’s insurance subsidiaries as of both December 2012 and December 2011.
Goldman Sachs 2012 Annual Report 183