Goldman Sachs 2013 Annual Report Download - page 174

Notes to Consolidated Financial Statements
Note 12.
Other Assets
Other assets are generally less liquid, non-financial assets.
The table below presents other assets by type.
As of December
in millions 2013 2012
Property, leasehold improvements and equipment $ 9,196 $ 8,217
Goodwill and identifiable intangible assets 4,376 5,099
Income tax-related assets 15,241 5,620
Equity-method investments 2417 453
Miscellaneous receivables and other 3,279 20,234
Total $22,509 $39,623
1. See Note 24 for further information about income taxes.
2. Excludes investments accounted for at fair value under the fair value option
where the firm would otherwise apply the equity method of accounting of
$6.07 billion and $5.54 billion as of December 2013 and December 2012,
respectively, which are included in “Financial instruments owned, at fair
value.” The firm has generally elected the fair value option for such
investments acquired after the fair value option became available.
Assets Held for Sale
In the fourth quarter of 2012, the firm classified its
Americas reinsurance business within its Institutional
Client Services segment as held for sale. As of
December 2012, assets related to this business were
$16.92 billion. In the table above, $16.77 billion of such
assets were included in “Miscellaneous receivables and
other” (primarily available-for-sale securities and separate
account assets) and $149 million were included in
“Goodwill and identifiable intangible assets.” Liabilities
related to this business of $14.62 billion as of
December 2012 were included in “Other liabilities and
accrued expenses.”
The firm completed the sale of a majority stake in its
Americas reinsurance business in April 2013. See Note 3 for
further information.
Property, Leasehold Improvements and Equipment
Property, leasehold improvements and equipment in the
table above is presented net of accumulated depreciation
and amortization of $9.04 billion and $9.05 billion as of
December 2013 and December 2012, respectively.
Property, leasehold improvements and equipment included
$6.02 billion and $6.20 billion as of December 2013 and
December 2012, respectively, related to property, leasehold
improvements and equipment that the firm uses in
connection with its operations. The remainder is held by
investment entities, including VIEs, consolidated by
the firm.
Substantially all property and equipment are depreciated on
a straight-line basis over the useful life of the asset.
Leasehold improvements are amortized on a straight-line
basis over the useful life of the improvement or the term of
the lease, whichever is shorter. Certain costs of software
developed or obtained for internal use are capitalized and
amortized on a straight-line basis over the useful life of
the software.
Impairments
The firm tests property, leasehold improvements and
equipment, identifiable intangible assets and other assets
for impairment whenever events or changes in
circumstances suggest that an asset’s or asset group’s
carrying value may not be fully recoverable. To the extent
the carrying value of an asset exceeds the projected
undiscounted cash flows expected to result from the use
and eventual disposal of the asset or asset group, the firm
determines the asset is impaired and records an impairment
loss equal to the difference between the estimated fair value
and the carrying value of the asset or asset group. In
addition, the firm will recognize an impairment loss prior to
the sale of an asset if the carrying value of the asset exceeds
its estimated fair value.
Primarily as a result of a decline in the market conditions in
which certain of the firm’s consolidated investments
operate, during 2013 and 2012, the firm determined certain
assets were impaired and recorded impairment losses of
$216 million ($160 million related to property, leasehold
improvements and equipment and $56 million related to
identifiable intangible assets) for 2013 and $404 million
($253 million related to property, leasehold improvements
and equipment and $151 million related to identifiable
intangible and other assets) for 2012.
These impairment losses, substantially all of which were
included in “Depreciation and amortization” within the
firm’s Investing & Lending segment, represented the excess
of the carrying values of these assets over their estimated
fair values, which are primarily level 3 measurements, using
a combination of discounted cash flow analyses and relative
value analyses, including the estimated cash flows expected
to result from the use and eventual disposition of
these assets.
172 Goldman Sachs 2013 Annual Report