Goldman Sachs 2013 Annual Report Download - page 182

Notes to Consolidated Financial Statements
Junior Subordinated Debt Issued in Connection with
Trust Preferred Securities. Group Inc. issued
$2.84 billion of junior subordinated debentures in 2004 to
Goldman Sachs Capital I (Trust), a Delaware statutory
trust. The Trust issued $2.75 billion of guaranteed
preferred beneficial interests to third parties and
$85 million of common beneficial interests to Group Inc.
and used the proceeds from the issuances to purchase the
junior subordinated debentures from Group Inc. The Trust
is a wholly-owned finance subsidiary of the firm for
regulatory and legal purposes but is not consolidated for
accounting purposes.
The firm pays interest semi-annually on the debentures at
an annual rate of 6.345% and the debentures mature on
February 15, 2034. The coupon rate and the payment dates
applicable to the beneficial interests are the same as the
interest rate and payment dates for the debentures. The firm
has the right, from time to time, to defer payment of interest
on the debentures, and therefore cause payment on the
Trust’s preferred beneficial interests to be deferred, in each
case up to ten consecutive semi-annual periods. During any
such deferral period, the firm will not be permitted to,
among other things, pay dividends on or make certain
repurchases of its common stock. The Trust is not
permitted to pay any distributions on the common
beneficial interests held by Group Inc. unless all dividends
payable on the preferred beneficial interests have been paid
in full.
Note 17.
Other Liabilities and Accrued Expenses
The table below presents other liabilities and accrued
expenses by type.
As of December
in millions 2013 2012
Compensation and benefits $ 7,874 $ 8,292
Insurance-related liabilities 1—10,274
Noncontrolling interests 2326 508
Income tax-related liabilities 31,974 2,724
Employee interests in consolidated funds 210 246
Subordinated liabilities issued by
consolidated VIEs 477 1,360
Accrued expenses and other 5,183 18,9914
Total $16,044 $42,395
1. Represents liabilities for future benefits and unpaid claims carried at fair
value under the fair value option related to the firm’s European insurance
business, in which a majority stake was sold in December 2013. See Note 3
for further information.
2. Primarily relates to consolidated investment funds.
3. See Note 24 for further information about income taxes.
4. Includes $14.62 billion of liabilities classified as held for sale as of
December 2012 related to the firm’s Americas reinsurance business, in
which a majority stake was sold in April 2013. See Note 12 for
further information.
180 Goldman Sachs 2013 Annual Report