Goldman Sachs 2015 Annual Report Download - page 174

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Other secured financings that are not recorded at fair value
are recorded based on the amount of cash received plus
accrued interest, which generally approximates fair value.
While these financings are carried at amounts that
approximate fair value, they are not accounted for at fair
value under the fair value option or at fair value in
accordance with other U.S. GAAP and therefore are not
included in the firm’s fair value hierarchy in Notes 6
through 8. Had these financings been included in the firm’s
fair value hierarchy, they would have been primarily
classified in level 2 as of December 2015 and
December 2014.
The tables below present information about other secured
financings.
As of December 2015
$ in millions
U.S.
Dollar
Non-U.S.
Dollar Total
Other secured financings (short-term):
At fair value $ 7,952 $ 5,448 $13,400
At amortized cost 514 319 833
Weighted average interest rates 2.93% 3.83%
Other secured financings (long-term):
At fair value 6,702 3,105 9,807
At amortized cost 370 343 713
Weighted average interest rates 2.87% 1.54%
Total 1$15,538 $ 9,215 $24,753
Amount of other secured financings
collateralized by:
Financial instruments 2$14,862 $ 8,872 $23,734
Other assets 676 343 1,019
As of December 2014
$ in millions
U.S.
Dollar
Non-U.S.
Dollar Total
Other secured financings (short-term):
At fair value $ 7,887 $ 7,668 $15,555
At amortized cost 5 — 5
Weighted average interest rates 4.33% —%
Other secured financings (long-term):
At fair value 3,290 2,605 5,895
At amortized cost 580 774 1,354
Weighted average interest rates 2.69% 2.31%
Total 1$11,762 $11,047 $22,809
Amount of other secured financings
collateralized by:
Financial instruments 2$11,460 $10,483 $21,943
Other assets 302 564 866
1. Includes $334 million and $974 million related to transfers of financial assets
accounted for as financings rather than sales as of December 2015 and
December 2014, respectively. Such financings were collateralized by financial
assets included in “Financial instruments owned, at fair value” of $336 million
and $995 million as of December 2015 and December 2014, respectively.
2. Includes $14.98 billion and $10.24 billion of other secured financings
collateralized by financial instruments owned, at fair value as of
December 2015 and December 2014, respectively, and includes $8.76 billion
and $11.70 billion of other secured financings collateralized by financial
instruments received as collateral and repledged as of December 2015 and
December 2014, respectively.
In the tables above:
‰Short-term secured financings include financings
maturing within one year of the financial statement date
and financings that are redeemable within one year of the
financial statement date at the option of the holder.
‰Weighted average interest rates exclude secured
financings at fair value and include the effect of hedging
activities. See Note 7 for further information about
hedging activities.
The table below presents other secured financings by
maturity date.
$ in millions
As of
December 2015
Other secured financings (short-term) $14,233
Other secured financings (long-term):
2017 5,651
2018 2,814
2019 482
2020 953
2021 - thereafter 620
Total other secured financings (long-term) 10,520
Total other secured financings $24,753
In the table above:
‰Long-term secured financings that are repayable prior to
maturity at the option of the firm are reflected at their
contractual maturity dates.
‰Long-term secured financings that are redeemable prior
to maturity at the option of the holders are reflected at the
earliest dates such options become exercisable.
Collateral Received and Pledged
The firm receives cash and securities (e.g., U.S. government
and federal agency, other sovereign and corporate
obligations, as well as equities and convertible debentures)
as collateral, primarily in connection with resale
agreements, securities borrowed, derivative transactions
and customer margin loans. The firm obtains cash and
securities as collateral on an upfront or contingent basis for
derivative instruments and collateralized agreements to
reduce its credit exposure to individual counterparties.
In many cases, the firm is permitted to deliver or repledge
financial instruments received as collateral when entering
into repurchase agreements and securities loaned
transactions, primarily in connection with secured client
financing activities. The firm is also permitted to deliver or
repledge these financial instruments in connection with
other secured financings, collateralized derivative
transactions and firm or customer settlement requirements.
162 Goldman Sachs 2015 Form 10-K