Goldman Sachs 2013 Annual Report Download - page 159

Notes to Consolidated Financial Statements
Level 3 Other Financial Assets at Fair Value for the Year Ended December 2013
in millions
Balance,
beginning
of year
Net
realized
gains/
(losses)
Net unrealized
gains/(losses)
relating to
instruments
still held at
year-end Purchases Sales Issuances Settlements
Transfers
into
level 3
Transfers
out of
level 3
Balance,
end of
year
Securities purchased under
agreements to resell $ 278 $ 4 $ — $ — $ — $ — $ (16) $ — $ (203) $ 63
Receivables from customers
and counterparties 641 1 14 54 (474) — (1) — — 235
Other assets 507 — — — (507) — — — — —
Total $ 1,426 $ 5 1$ 14 1$54 $ (981) $ — $ (17) $ — $ (203) $ 298
1. The aggregate amounts include gains of approximately $14 million, $1 million and $4 million reported in “Market making,” “Other principal transactions” and
“Interest income,” respectively.
Level 3 Other Financial Liabilities at Fair Value for the Year Ended December 2013
in millions
Balance,
beginning
of year
Net
realized
(gains)/
losses
Net unrealized
(gains)/losses
relating to
instruments
still held at
year-end Purchases Sales Issuances Settlements
Transfers
into
level 3
Transfers
out of
level 3
Balance,
end of
year
Deposits $ 359 $ — $ (6) $ — $ — $ 109 $ (6) $ — $ (71) $ 385
Securities sold under
agreements to repurchase,
at fair value 1,927 — — — — — (917) — — 1,010
Other secured financings 1,412 10 2 — — 708 (894) 126 (345) 1,019
Unsecured short-term
borrowings 2,584 1 239 — — 1,624 (1,502) 714 (273) 3,387
Unsecured long-term
borrowings 1,917 22 43 (3) — 470 (558) 671 (725) 1,837
Other liabilities and
accrued expenses 11,274 (29) (2) — (10,288) — (426) — (503) 26
Total $19,473 $ 4 1$276 1$ (3) $(10,288) $2,911 $(4,303) $1,511 $(1,917) $7,664
1. The aggregate amounts include losses of approximately $184 million, $88 million and $8 million reported in “Market making,” “Other principal transactions” and
“Interest expense,” respectively.
The net unrealized loss on level 3 other financial liabilities
of $276 million for 2013 primarily reflected losses on
certain hybrid financial instruments included in unsecured
short-term borrowings, principally due to an increase in
global equity prices.
Sales of other liabilities and accrued expenses during 2013
primarily reflected the sale of a majority stake in the firm’s
European insurance business.
Transfers out of level 3 of other financial assets during 2013
primarily reflected transfers of certain resale agreements to
level 2, principally due to increased price transparency as a
result of market transactions in similar instruments.
Transfers into level 3 of other financial liabilities during
2013 primarily reflected transfers of certain hybrid
financial instruments included in unsecured short-term and
long-term borrowings from level 2, principally due to
decreased transparency of certain correlation and volatility
inputs used to value these instruments.
Transfers out of level 3 of other financial liabilities during
2013 primarily reflected transfers of certain hybrid
financial instruments included in unsecured short-term and
long-term borrowings to level 2, principally due to
increased transparency of certain correlation and volatility
inputs used to value these instruments, and transfers of
subordinated liabilities included in other liabilities and
accrued expenses to level 2, principally due to increased
price transparency as a result of market transactions in the
related underlying investments.
Goldman Sachs 2013 Annual Report 157