Goldman Sachs 2012 Annual Report Download - page 35

Financial Information — Table of Contents
Management’s Discussion and Analysis
Introduction 34
Executive Overview 35
Business Environment 37
Critical Accounting Policies 39
Use of Estimates 43
Results of Operations 44
Regulatory Developments 58
Balance Sheet and Funding Sources 61
Equity Capital 68
Off-Balance-Sheet Arrangements and
Contractual Obligations 74
Overview and Structure of Risk Management 76
Liquidity Risk Management 81
Market Risk Management 88
Credit Risk Management 94
Operational Risk Management 101
Recent Accounting Developments 103
Certain Risk Factors That May Affect Our
Businesses 104
Management’s Report on Internal Control
over Financial Reporting 105
Report of Independent Registered
Public Accounting Firm 106
Consolidated Financial Statements
Consolidated Statements of Earnings 107
Consolidated Statements of Comprehensive Income 108
Consolidated Statements of Financial Condition 109
Consolidated Statements of Changes
in Shareholders’ Equity 110
Consolidated Statements of Cash Flows 111
Notes to Consolidated Financial Statements
Note 1 — Description of Business 112
Note 2 — Basis of Presentation 112
Note 3 — Significant Accounting Policies 113
Note 4 — Financial Instruments Owned, at Fair
Value and Financial Instruments Sold, But Not Yet
Purchased, at Fair Value 117
Note 5 — Fair Value Measurements 118
Note 6 — Cash Instruments 120
Note 7 — Derivatives and Hedging Activities 128
Note 8 — Fair Value Option 143
Note 9 — Collateralized Agreements and Financings 152
Note 10 — Securitization Activities 155
Note 11 — Variable Interest Entities 158
Note 12 — Other Assets 163
Note 13 — Goodwill and Identifiable Intangible
Assets 165
Note 14 — Deposits 167
Note 15 — Short-Term Borrowings 168
Note 16 — Long-Term Borrowings 169
Note 17 — Other Liabilities and Accrued Expenses 173
Note 18 — Commitments, Contingencies and
Guarantees 174
Note 19 — Shareholders’ Equity 181
Note 20 — Regulation and Capital Adequacy 184
Note 21 — Earnings Per Common Share 189
Note 22 — Transactions with Affiliated Funds 190
Note 23 — Interest Income and Interest Expense 191
Note 24 — Income Taxes 192
Note 25 — Business Segments 195
Note 26 — Credit Concentrations 199
Note 27 — Legal Proceedings 200
Note 28 — Employee Benefit Plans 213
Note 29 — Employee Incentive Plans 214
Note 30 — Parent Company 217
Supplemental Financial Information
Quarterly Results 218
Common Stock Price Range 219
Common Stock Performance 219
Selected Financial Data 220
Statistical Disclosures 221
Goldman Sachs 2012 Annual Report 33