Goldman Sachs 2013 Annual Report Download - page 165

Notes to Consolidated Financial Statements
Other Secured Financings
In addition to repurchase agreements and securities lending
transactions, the firm funds certain assets through the use of
other secured financings and pledges financial instruments
and other assets as collateral in these transactions. These
other secured financings consist of:
‰liabilities of consolidated VIEs;
‰transfers of assets accounted for as financings rather than
sales (primarily collateralized central bank financings,
pledged commodities, bank loans and mortgage whole
loans); and
‰other structured financing arrangements.
Other secured financings include arrangements that are
nonrecourse. As of December 2013 and December 2012,
nonrecourse other secured financings were $1.54 billion
and $1.76 billion, respectively.
The firm has elected to apply the fair value option to
substantially all other secured financings because the use of
fair value eliminates non-economic volatility in earnings
that would arise from using different measurement
attributes. See Note 8 for further information about other
secured financings that are accounted for at fair value.
Other secured financings that are not recorded at fair value
are recorded based on the amount of cash received plus
accrued interest, which generally approximates fair value.
While these financings are carried at amounts that
approximate fair value, they are not accounted for at fair
value under the fair value option or at fair value in
accordance with other U.S. GAAP and therefore are not
included in the firm’s fair value hierarchy in Notes 6, 7 and
8. Had these financings been included in the firm’s fair
value hierarchy, they would have primarily been classified
in level 2 and level 3 as of December 2013 and
December 2012, respectively.
The table below presents information about other secured
financings. In the table below:
‰short-term secured financings include financings
maturing within one year of the financial statement date
and financings that are redeemable within one year of the
financial statement date at the option of the holder;
‰long-term secured financings that are repayable prior to
maturity at the option of the firm are reflected at their
contractual maturity dates;
‰long-term secured financings that are redeemable prior to
maturity at the option of the holders are reflected at the
dates such options become exercisable; and
‰weighted average interest rates exclude secured financings
at fair value and include the effect of hedging activities. See
Note 7 for further information about hedging activities.
As of December 2013
$ in millions
U.S.
Dollar
Non-U.S.
Dollar Total
Other secured financings (short-term):
At fair value $ 9,374 $ 7,828 $17,202
At amortized cost 88 — 88
Weighted average interest rates 2.86% —%
Other secured financings (long-term):
At fair value 3,711 2,678 6,389
At amortized cost 372 763 1,135
Weighted average interest rates 3.78% 1.53%
Total 1$13,545 $11,269 $24,814
Amount of other secured financings
collateralized by:
Financial instruments 2$13,366 $10,880 $24,246
Other assets 179 389 568
As of December 2012
$ in millions
U.S.
Dollar Non-U.S. Dollar Total
Other secured financings (short-term):
At fair value $16,504 $ 6,181 $22,685
At amortized cost 34 326 360
Weighted average interest rates 6.18% 0.10%
Other secured financings (long-term):
At fair value 6,134 1,518 7,652
At amortized cost 577 736 1,313
Weighted average interest rates 3.38% 2.55%
Total 1$23,249 $ 8,761 $32,010
Amount of other secured financings
collateralized by:
Financial instruments 2$22,323 $ 8,442 $30,765
Other assets 926 319 1,245
1. Includes $1.54 billion and $8.68 billion related to transfers of financial assets
accounted for as financings rather than sales as of December 2013 and
December 2012, respectively. Such financings were collateralized by
financial assets included in “Financial instruments owned, at fair value” of
$1.58 billion and $8.92 billion as of December 2013 and
December 2012, respectively.
2. Includes $14.75 billion and $17.24 billion of other secured financings
collateralized by financial instruments owned, at fair value as of
December 2013 and December 2012, respectively, and includes $9.50 billion
and $13.53 billion of other secured financings collateralized by financial
instruments received as collateral and repledged as of December 2013 and
December 2012, respectively.
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