Goldman Sachs 2013 Annual Report Download - page 116

Consolidated Statements of Cash Flows
Year Ended December
in millions 2013 2012 2011
Cash flows from operating activities
Net earnings $ 8,040 $ 7,475 $ 4,442
Adjustments to reconcile net earnings to net cash provided by/(used for) operating activities
Depreciation and amortization 1,322 1,738 1,869
Deferred income taxes 29 (356) 726
Share-based compensation 2,015 1,319 2,849
Gain on sale of hedge fund administration business —(494) —
Gain on sale of European insurance business (211) ——
Changes in operating assets and liabilities
Cash and securities segregated for regulatory and other purposes (143) 10,817 (10,532)
Net receivables from brokers, dealers and clearing organizations (5,313) (2,838) (3,780)
Net payables to customers and counterparties 1,631 (17,661) 13,883
Securities borrowed, net of securities loaned (22,698) 23,031 8,940
Securities sold under agreements to repurchase, net of securities purchased under agreements to resell
and federal funds sold (28,971) 53,527 122
Financial instruments owned, at fair value 51,079 (48,783) 5,085
Financial instruments sold, but not yet purchased, at fair value 933 (18,867) 4,243
Other, net (3,170) 3,971 (5,346)
Net cash provided by operating activities 4,543 12,879 22,501
Cash flows from investing activities
Purchase of property, leasehold improvements and equipment (706) (961) (1,184)
Proceeds from sales of property, leasehold improvements and equipment 62 49 78
Business acquisitions, net of cash acquired (2,274) (593) (431)
Proceeds from sales of investments 2,503 1,195 2,645
Purchase of available-for-sale securities (738) (5,220) (2,752)
Proceeds from sales of available-for-sale securities 817 4,537 3,129
Loans held for investment, net (8,392) (2,741) (856)
Net cash provided by/(used for) investing activities (8,728) (3,734) 629
Cash flows from financing activities
Unsecured short-term borrowings, net 1,336 (1,952) (3,780)
Other secured financings (short-term), net (7,272) 1,540 (1,195)
Proceeds from issuance of other secured financings (long-term) 6,604 4,687 9,809
Repayment of other secured financings (long-term), including the current portion (3,630) (11,576) (8,878)
Proceeds from issuance of unsecured long-term borrowings 30,851 27,734 29,169
Repayment of unsecured long-term borrowings, including the current portion (30,473) (36,435) (29,187)
Derivative contracts with a financing element, net 874 1,696 1,602
Deposits, net 683 24,015 7,540
Preferred stock repurchased —— (3,857)
Common stock repurchased (6,175) (4,640) (6,048)
Dividends and dividend equivalents paid on common stock, preferred stock and restricted stock units (1,302) (1,086) (2,771)
Proceeds from issuance of preferred stock, net of issuance costs 991 3,087 —
Proceeds from issuance of common stock, including stock option exercises 65 317 368
Excess tax benefit related to share-based compensation 98 130 358
Cash settlement of share-based compensation (1) (1) (40)
Net cash provided by/(used for) financing activities (7,351) 7,516 (6,910)
Net increase/(decrease) in cash and cash equivalents (11,536) 16,661 16,220
Cash and cash equivalents, beginning of year 72,669 56,008 39,788
Cash and cash equivalents, end of year $ 61,133 $ 72,669 $ 56,008
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of capitalized interest, were $5.69 billion, $9.25 billion and $8.05 billion for 2013, 2012 and 2011, respectively.
Cash payments for income taxes, net of refunds, were $4.07 billion, $1.88 billion and $1.78 billion for 2013, 2012 and 2011, respectively.
Non-cash activities:
During 2012, the firm assumed $77 million of debt in connection with business acquisitions. During 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.
The accompanying notes are an integral part of these consolidated financial statements.
114 Goldman Sachs 2013 Annual Report