Goldman Sachs 2015 Annual Report Download - page 165

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Level 3 Rollforward
The table below presents changes in fair value for other
financial assets and financial liabilities accounted for at fair
value categorized as level 3 as of the end of the year. In the
table below:
‰If a financial asset or financial liability was transferred to
level 3 during a reporting period, its entire gain or loss for
the period is included in level 3. For level 3 other financial
assets, increases are shown as positive amounts, while
decreases are shown as negative amounts. For level 3
other financial liabilities, increases are shown as negative
amounts, while decreases are shown as positive amounts.
‰Level 3 other financial assets and liabilities are frequently
economically hedged with cash instruments and
derivatives. Accordingly, gains or losses that are reported
in level 3 can be partially offset by gains or losses
attributable to level 1, 2 or 3 cash instruments or
derivatives. As a result, gains or losses included in the
level 3 rollforward below do not necessarily represent the
overall impact on the firm’s results of operations,
liquidity or capital resources.
‰Net unrealized gains/(losses) relate to instruments that
were still held at year-end.
‰For the year ended December 2015, the net realized and
unrealized gains on level 3 other financial liabilities of
$858 million (reflecting $75 million of realized gains and
$783 million of unrealized gains) include gains/(losses) of
approximately $841 million, $28 million and
$(11) million reported in “Market making,” “Other
principal transactions” and “Interest expense,”
respectively.
‰For the year ended December 2014, the net realized and
unrealized losses on level 3 other financial liabilities of
$716 million (reflecting $93 million of realized losses and
$623 million of unrealized losses) include gains/(losses) of
approximately $150 million, $(833) million and
$(33) million reported in “Market making,” “Other
principal transactions” and “Interest expense,”
respectively.
‰See “Level 3 Rollforward Commentary” below for an
explanation of the net unrealized gains/(losses) on level 3
other financial assets and liabilities and the activity
related to transfers into and out of level 3.
Level 3 Other Financial Assets and Liabilities at Fair Value
$ in millions
Balance,
beginning
of year
Net
realized
gains/
(losses)
Net
unrealized
gains/
(losses) Purchases Sales Issuances Settlements
Transfers
into
level 3
Transfers
out of
level 3
Balance,
end of
year
Year Ended December 2015
Receivables from customers
and counterparties $ 56 $ 2 $ 2 $ 8 $ — $ — $ (22) $ — $ (1) $ 45
Total other financial assets $ 56 $ 2 $ 2 $ 8 $ — $ — $ (22) $ — $ (1) $ 45
Deposits $(1,065) $ (9) $ 56 $ — $ — $(1,252) $ 55 $ — $ — $ (2,215)
Securities sold under agreements to
repurchase (124) — (2) — — — 55 — — (71)
Other secured financings (1,091) (10) 34 (1) — (504) 363 (85) 745 (549)
Unsecured short-term borrowings (3,712) 96 355 — — (3,377) 2,275 (641) 871 (4,133)
Unsecured long-term borrowings (2,585) (7) 352 — — (2,888) 846 (464) 522 (4,224)
Other liabilities and accrued expenses (715) 5 (12) — — (3) 10 (23) 686 (52)
Total other financial liabilities $(9,292) $ 75 $ 783 $ (1) $ — $(8,024) $3,604 $(1,213) $2,824 $(11,244)
Year Ended December 2014
Securities purchased under
agreements to resell $ 63 $ — $ — $ — $ — $ — $ (63) $ — $ — $ —
Receivables from customers
and counterparties 235 3 2 29 — — (33) — (180) 56
Total other financial assets $ 298 $ 3 $ 2 $ 29 $ — $ — $ (96) $ — $ (180) $ 56
Deposits $ (385) $ — $ (21) $ 5 $ — $ (442) $ 6 $ (280) $ 52 $ (1,065)
Securities sold under agreements to
repurchase (1,010) — — — — — 886 — — (124)
Other secured financings (1,019) (31) 27 (20) — (402) 521 (364) 197 (1,091)
Unsecured short-term borrowings (3,387) (11) (251) (5) — (2,246) 1,828 (981) 1,341 (3,712)
Unsecured long-term borrowings (1,837) (46) 56 3 — (1,221) 446 (1,344) 1,358 (2,585)
Other liabilities and accrued expenses (26) (5) (434) — (19) — 20 (301) 50 (715)
Total other financial liabilities $(7,664) $ (93) $(623) $(17) $(19) $(4,311) $3,707 $(3,270) $2,998 $ (9,292)
Goldman Sachs 2015 Form 10-K 153