Goldman Sachs 2013 Annual Report Download - page 180

Notes to Consolidated Financial Statements
The table below presents unsecured long-term borrowings
by maturity date and reflects the following:
‰unsecured long-term borrowings maturing within one
year of the financial statement date and unsecured long-
term borrowings that are redeemable within one year of
the financial statement date at the option of the holders
are excluded from the table as they are included as
unsecured short-term borrowings;
‰unsecured long-term borrowings that are repayable prior
to maturity at the option of the firm are reflected at their
contractual maturity dates; and
‰unsecured long-term borrowings that are redeemable
prior to maturity at the option of the holders are reflected
at the dates such options become exercisable.
As of December 2013
in millions Group Inc. Subsidiaries Total
2015 $ 23,170 $ 682 $ 23,852
2016 21,634 220 21,854
2017 20,044 489 20,533
2018 21,843 1,263 23,106
2019 - thereafter 66,822 4,798 71,620
Total 1$153,513 $7,452 $160,965
1. Includes $7.48 billion of adjustments to the carrying value of certain
unsecured long-term borrowings resulting from the application of hedge
accounting by year of maturity as follows: $301 million in 2015, $775 million
in 2016, $999 million in 2017, $970 million in 2018 and $4.43 billion in 2019
and thereafter.
The firm designates certain derivatives as fair value hedges to
effectively convert a substantial portion of its fixed-rate
unsecured long-term borrowings which are not accounted
for at fair value into floating-rate obligations. Accordingly,
excluding the cumulative impact of changes in the firm’s
credit spreads, the carrying value of unsecured long-term
borrowings approximated fair value as of December 2013
and December 2012. See Note 7 for further information
about hedging activities. For unsecured long-term
borrowings for which the firm did not elect the fair value
option, the cumulative impact due to changes in the firm’s
own credit spreads would be an increase of approximately
3% and 1% in the carrying value of total unsecured long-
term borrowings as of December 2013 and December 2012,
respectively. As these borrowings are not accounted for at
fair value under the fair value option or at fair value in
accordance with other U.S. GAAP, their fair value is not
included in the firm’s fair value hierarchy in Notes 6, 7 and 8.
Had these borrowings been included in the firm’s fair value
hierarchy, substantially all would have been classified in
level 2 as of December 2013 and December 2012.
The table below presents unsecured long-term borrowings,
after giving effect to hedging activities that converted a
substantial portion of fixed-rate obligations to floating-
rate obligations.
As of December 2013
in millions Group Inc. Subsidiaries Total
Fixed-rate obligations
At fair value $ — $ 471 $ 471
At amortized cost 131,741 1,959 33,700
Floating-rate obligations
At fair value 8,671 2,549 11,220
At amortized cost 1113,101 2,473 115,574
Total $153,513 $7,452 $160,965
As of December 2012
in millions Group Inc. Subsidiaries Total
Fixed-rate obligations
At fair value $ 28 $ 94 $ 122
At amortized cost 122,500 2,047 24,547
Floating-rate obligations
At fair value 8,166 4,305 12,471
At amortized cost 1127,985 2,180 130,165
Total $158,679 $8,626 $167,305
1. The weighted average interest rates on the aggregate amounts were 2.73%
(5.23% related to fixed-rate obligations and 2.04% related to floating-rate
obligations) and 2.47% (5.26% related to fixed-rate obligations and 1.98%
related to floating-rate obligations) as of December 2013 and
December 2012, respectively. These rates exclude financial instruments
accounted for at fair value under the fair value option.
178 Goldman Sachs 2013 Annual Report