Goldman Sachs 2013 Annual Report Download - page 217

Notes to Consolidated Financial Statements
Note 30.
Parent Company
Group Inc. — Condensed Statements of Earnings
Year Ended December
in millions 2013 2012 2011
Revenues
Dividends from bank subsidiaries $2,000 $ — $ 1,000
Dividends from nonbank subsidiaries 4,176 3,622 4,967
Undistributed earnings of subsidiaries 1,086 3,682 481
Other revenues 2,209 1,567 (3,381)
Total non-interest revenues 9,471 8,871 3,067
Interest income 4,048 4,751 4,547
Interest expense 4,161 4,287 3,917
Net interest income/(expense) (113) 464 630
Net revenues, including net interest
income/(expense) 9,358 9,335 3,697
Operating expenses
Compensation and benefits 403 452 300
Other expenses 424 448 252
Total operating expenses 827 900 552
Pre-tax earnings 8,531 8,435 3,145
Provision/(benefit) for taxes 491 960 (1,297)
Net earnings 8,040 7,475 4,442
Preferred stock dividends 314 183 1,932
Net earnings applicable to
common shareholders $7,726 $ 7,292 $ 2,510
Group Inc. — Condensed Statements of Financial Condition
As of December
in millions 2013 2012
Assets
Cash and cash equivalents $ 17 $ 14
Loans to and receivables from subsidiaries
Bank subsidiaries 3,453 4,103
Nonbank subsidiaries 1171,566 174,609
Investments in subsidiaries and other affiliates
Bank subsidiaries 20,041 20,671
Nonbank subsidiaries and other affiliates 53,353 52,646
Financial instruments owned, at fair value 16,065 19,132
Other assets 7,575 4,782
Total assets $272,070 $275,957
Liabilities and shareholders’ equity
Payables to subsidiaries $ 489 $ 657
Financial instruments sold, but not yet purchased,
at fair value 421 301
Unsecured short-term borrowings
With third parties 230,611 29,898
With subsidiaries 4,289 4,253
Unsecured long-term borrowings
With third parties 3153,576 158,761
With subsidiaries 41,587 3,574
Other liabilities and accrued expenses 2,630 2,797
Total liabilities 193,603 200,241
Commitments, contingencies and guarantees
Shareholders’ equity
Preferred stock 7,200 6,200
Common stock 88
Restricted stock units and employee stock options 3,839 3,298
Additional paid-in capital 48,998 48,030
Retained earnings 71,961 65,223
Accumulated other comprehensive loss (524) (193)
Stock held in treasury, at cost (53,015) (46,850)
Total shareholders’ equity 78,467 75,716
Total liabilities and shareholders’ equity $272,070 $275,957
Group Inc. — Condensed Statements of Cash Flows
Year Ended December
in millions 2013 2012 2011
Cash flows from operating activities
Net earnings $ 8,040 $ 7,475 $ 4,442
Adjustments to reconcile net earnings to net
cash provided by operating activities
Undistributed earnings of subsidiaries (1,086) (3,682) (481)
Depreciation and amortization 15 15 14
Deferred income taxes 1,398 (1,258) 809
Share-based compensation 194 81 244
Changes in operating assets and liabilities
Financial instruments owned, at fair value (3,235) 2,197 7,387
Financial instruments sold, but not yet
purchased, at fair value 183 (3) (536)
Other, net 586 1,888 (2,408)
Net cash provided by operating activities 6,095 6,713 9,471
Cash flows from investing activities
Purchase of property, leasehold improvements
and equipment (3) (12) (42)
Repayments/(issuances) of short-term loans
by/(to) subsidiaries, net (5,153) 6,584 20,319
Issuance of term loans to subsidiaries (2,174) (17,414) (42,902)
Repayments of term loans by subsidiaries 7,063 18,715 21,850
Capital distributions from/(contributions to)
subsidiaries, net 655 (298) 4,642
Net cash provided by/(used for)
investing activities 388 7,575 3,867
Cash flows from financing activities
Unsecured short-term borrowings, net 1,296 (2,647) (727)
Proceeds from issuance of
long-term borrowings 28,458 26,160 27,251
Repayment of long-term borrowings, including
the current portion (29,910) (35,608) (27,865)
Preferred stock repurchased —— (3,857)
Common stock repurchased (6,175) (4,640) (6,048)
Dividends and dividend equivalents paid on
common stock, preferred stock and
restricted stock units (1,302) (1,086) (2,771)
Proceeds from issuance of preferred stock, net
of issuance costs 991 3,087 —
Proceeds from issuance of common stock,
including stock option exercises 65 317 368
Excess tax benefit related to share-
based compensation 98 130 358
Cash settlement of share-based compensation (1) (1) (40)
Net cash used for financing activities (6,480) (14,288) (13,331)
Net increase/(decrease) in cash and
cash equivalents 3—7
Cash and cash equivalents, beginning of year 14 14 7
Cash and cash equivalents, end of year $ 17 $ 14 $ 14
SUPPLEMENTAL DISCLOSURES:
Cash payments for third-party interest, net of capitalized interest, were
$2.78 billion, $5.11 billion and $3.83 billion for 2013, 2012 and
2011, respectively.
Cash payments for income taxes, net of refunds, were $3.21 billion,
$1.59 billion and $1.39 billion for 2013, 2012 and 2011, respectively.
Non-cash activity:
During 2011, $103 million of common stock was issued in connection with the
acquisition of GS Australia.
1. Primarily includes overnight loans, the proceeds of which can be used to
satisfy the short-term obligations of Group Inc.
2. Includes $5.83 billion and $4.91 billion at fair value for 2013 and
2012, respectively.
3. Includes $8.67 billion and $8.19 billion at fair value for 2013 and
2012, respectively.
4. Unsecured long-term borrowings with subsidiaries by maturity date are
$213 million in 2015, $136 million in 2016, $150 million in 2017, $71 million
in 2018, and $1.02 billion in 2019-thereafter.
Goldman Sachs 2013 Annual Report 215