Goldman Sachs 2015 Annual Report Download - page 132

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Year Ended December
$ in millions 2015 2014 2013
Cash flows from operating activities
Net earnings $ 6,083 $ 8,477 $ 8,040
Adjustments to reconcile net earnings to net cash provided by/(used for) operating activities
Depreciation and amortization 991 1,337 1,322
Deferred income taxes 425 495 29
Share-based compensation 2,272 2,085 2,015
Gain on sale of European insurance business —— (211)
Gain related to extinguishment of junior subordinated debt (34) (289) —
Changes in operating assets and liabilities
Cash and securities segregated for regulatory and other purposes (5,123) (2,046) (143)
Receivables and payables (excluding loans receivable), net 19,132 12,328 (3,682)
Collateralized transactions (excluding other secured financings), net (9,005) (52,104) (51,669)
Financial instruments owned, at fair value 14,472 27,547 51,079
Financial instruments sold, but not yet purchased, at fair value (16,835) 4,642 933
Other, net (5,417) (10,095) (3,170)
Net cash provided by/(used for) operating activities 6,961 (7,623) 4,543
Cash flows from investing activities
Purchase of property, leasehold improvements and equipment (1,833) (678) (706)
Proceeds from sales of property, leasehold improvements and equipment 228 30 62
Business acquisitions, net of cash acquired (1,808) (1,732) (2,274)
Proceeds from sales of investments 1,019 1,514 2,503
Purchase of available-for-sale securities —— (738)
Proceeds from sales of available-for-sale securities —— 817
Loans receivable, net (16,180) (14,043) (8,392)
Net cash used for investing activities (18,574) (14,909) (8,728)
Cash flows from financing activities
Unsecured short-term borrowings, net (369) 1,659 1,336
Other secured financings (short-term), net (867) (837) (7,272)
Proceeds from issuance of other secured financings (long-term) 10,349 6,900 6,604
Repayment of other secured financings (long-term), including the current portion (6,502) (7,636) (3,630)
Proceeds from issuance of unsecured long-term borrowings 44,595 39,857 30,851
Repayment of unsecured long-term borrowings, including the current portion (29,520) (28,138) (30,473)
Purchase of trust preferred securities (1) (1,611) —
Derivative contracts with a financing element, net (47) 643 874
Deposits, net 14,639 12,201 683
Common stock repurchased (4,135) (5,469) (6,175)
Dividends and dividend equivalents paid on common stock, preferred stock and share-based awards (1,681) (1,454) (1,302)
Proceeds from issuance of preferred stock, net of issuance costs 1,993 1,980 991
Proceeds from issuance of common stock, including exercise of share-based awards 259 123 65
Excess tax benefit related to share-based awards 407 782 98
Cash settlement of share-based awards (2) (1) (1)
Net cash provided by/(used for) financing activities 29,118 18,999 (7,351)
Net increase/(decrease) in cash and cash equivalents 17,505 (3,533) (11,536)
Cash and cash equivalents, beginning of year 57,600 61,133 72,669
Cash and cash equivalents, end of year $ 75,105 $ 57,600 $ 61,133
SUPPLEMENTAL DISCLOSURES:
Cash payments for interest, net of capitalized interest, were $4.82 billion, $6.43 billion and $5.69 billion for 2015, 2014 and 2013, respectively.
Cash payments for income taxes, net of refunds, were $2.65 billion, $3.05 billion and $4.07 billion for 2015, 2014 and 2013, respectively.
Non-cash activities:
During 2015, the firm exchanged $262 million of Trust Preferred Securities and common beneficial interests held by the firm for $296 million of the firm’s junior
subordinated debt held by the issuing trust. Following the exchange, this junior subordinated debt was extinguished.
During 2015, the firm repurchased $60 million of its common stock for which settlement occurred and cash was paid in 2016.
During 2014, the firm exchanged $1.58 billion of Trust Preferred Securities, common beneficial interests and senior guaranteed trust securities held by the firm for
$1.87 billion of the firm’s junior subordinated debt held by the issuing trusts. Following the exchange, this junior subordinated debt was extinguished.
During 2014, the firm sold certain consolidated investments and provided seller financing, which resulted in a non-cash increase to loans receivable of $115 million.
The accompanying notes are an integral part of these consolidated financial statements.
120 Goldman Sachs 2015 Form 10-K