Goldman Sachs 2013 Annual Report Download - page 78

Management’s Discussion and Analysis
Contractual Obligations
We have certain contractual obligations which require us to
make future cash payments. These contractual obligations
include our unsecured long-term borrowings, secured long-
term financings, time deposits and contractual interest
payments, all of which are included in our consolidated
statements of financial condition. Our obligations to make
future cash payments also include certain off-balance-sheet
contractual obligations such as purchase obligations,
minimum rental payments under noncancelable leases and
commitments and guarantees.
The table below presents our contractual obligations,
commitments and guarantees as of December 2013.
in millions 2014 2015-2016 2017-2018
2019-
Thereafter Total
Amounts related to on-balance-sheet obligations
Time deposits $ — $ 6,554 $ 4,626 $ 4,481 $ 15,661
Secured long-term financings 1— 5,847 943 734 7,524
Unsecured long-term borrowings 2— 45,706 43,639 71,620 160,965
Contractual interest payments 36,695 12,303 5,252 36,919 61,169
Subordinated liabilities issued by consolidated VIEs 74 — — 403 477
Amounts related to off-balance-sheet arrangements
Commitments to extend credit 15,069 24,214 43,356 4,988 87,627
Contingent and forward starting resale and securities borrowing agreements 34,410 — — — 34,410
Forward starting repurchase and secured lending agreements 8,256 — — — 8,256
Letters of credit 465 21 10 5 501
Investment commitments 41,359 5,387 20 350 7,116
Other commitments 3,734 102 54 65 3,955
Minimum rental payments 387 620 493 1,195 2,695
Derivative guarantees 517,634 180,543 39,367 57,736 795,280
Securities lending indemnifications 26,384 — — — 26,384
Other financial guarantees 1,361 620 1,140 1,046 4,167
1. The aggregate contractual principal amount of secured long-term financings for which the fair value option was elected exceeded the related fair value by
$154 million.
2. Includes $7.48 billion of adjustments to the carrying value of certain unsecured long-term borrowings resulting from the application of hedge accounting. In addition,
the aggregate contractual principal amount of unsecured long-term borrowings (principal and non-principal-protected) for which the fair value option was elected
exceeded the related fair value by $92 million.
3. Represents estimated future interest payments related to unsecured long-term borrowings, secured long-term financings and time deposits based on applicable
interest rates as of December 2013. Includes stated coupons, if any, on structured notes.
4. $5.66 billion of commitments to covered funds (as defined by the Volcker Rule) are included in the 2014 and 2015-2016 columns. We expect that substantially all of
these commitments will not be called.
In the table above:
‰Obligations maturing within one year of our financial
statement date or redeemable within one year of our
financial statement date at the option of the holder are
excluded and are treated as short-term obligations.
‰Obligations that are repayable prior to maturity at our
option are reflected at their contractual maturity dates
and obligations that are redeemable prior to maturity at
the option of the holders are reflected at the dates such
options become exercisable.
‰Amounts included in the table do not necessarily reflect
the actual future cash flow requirements for these
arrangements because commitments and guarantees
represent notional amounts and may expire unused or be
reduced or cancelled at the counterparty’s request.
‰Due to the uncertainty of the timing and amounts that
will ultimately be paid, our liability for unrecognized tax
benefits has been excluded. See Note 24 to the
consolidated financial statements for further information
about our unrecognized tax benefits.
76 Goldman Sachs 2013 Annual Report