Goldman Sachs 2015 Annual Report Download - page 184

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note 16.
Long-Term Borrowings
The table below presents details about the firm’s long-term
borrowings.
As of December
$ in millions 2015 2014
Other secured financings (long-term) $ 10,520 $ 7,249
Unsecured long-term borrowings 175,422 167,302
Total $185,942 $174,551
See Note 10 for information about other secured
financings.
The tables below present unsecured long-term borrowings
extending through 2061 and consisting principally of senior
borrowings.
As of December 2015
$ in millions
U.S.
Dollar
Non-U.S.
Dollar Total
Fixed-rate obligations 1
Group Inc. $ 90,076 $29,808 $119,884
Subsidiaries 2,114 895 3,009
Floating-rate obligations 2
Group Inc. 27,881 16,916 44,797
Subsidiaries 5,662 2,070 7,732
Total $125,733 $49,689 $175,422
As of December 2014
$ in millions
U.S.
Dollar
Non-U.S.
Dollar Total
Fixed-rate obligations 1
Group Inc. $ 86,255 $34,070 $120,325
Subsidiaries 3,062 710 3,772
Floating-rate obligations 2
Group Inc. 23,396 14,590 37,986
Subsidiaries 4,137 1,082 5,219
Total $116,850 $50,452 $167,302
1. Interest rates on U.S. dollar-denominated debt ranged from 1.60% to
10.04% (with a weighted average rate of 4.89%) and 1.55% to 10.04% (with
a weighted average rate of 5.08%) as of December 2015 and
December 2014, respectively. Interest rates on non-U.S. dollar-denominated
debt ranged from 0.40% to 13.00% (with a weighted average rate of 3.81%)
and 0.02% to 13.00% (with a weighted average rate of 4.06%) as of
December 2015 and December 2014, respectively.
2. Floating interest rates generally are based on LIBOR or OIS. Equity-linked
and indexed instruments are included in floating-rate obligations.
The table below presents unsecured long-term borrowings
by maturity date.
As of December 2015
$ in millions Group Inc. Subsidiaries Total
2017 $ 22,744 $ 2,618 $ 25,362
2018 23,262 1,869 25,131
2019 15,010 1,025 16,035
2020 17,606 349 17,955
2021 - thereafter 86,059 4,880 90,939
Total 1$164,681 $10,741 $175,422
1. Includes $8.34 billion of adjustments to the carrying value of certain
unsecured long-term borrowings resulting from the application of hedge
accounting by year of maturity as follows: $436 million in 2017, $614 million
in 2018, $407 million in 2019, $443 million in 2020, and $6.44 billion in 2021
and thereafter.
In the table above:
‰Unsecured long-term borrowings maturing within one
year of the financial statement date and unsecured long-
term borrowings that are redeemable within one year of
the financial statement date at the option of the holders
are excluded from the table as they are included as
unsecured short-term borrowings.
‰Unsecured long-term borrowings that are repayable prior
to maturity at the option of the firm are reflected at their
contractual maturity dates.
‰Unsecured long-term borrowings that are redeemable
prior to maturity at the option of the holders are reflected
at the earliest dates such options become exercisable.
The firm designates certain derivatives as fair value hedges to
convert a majority of the amount of its fixed-rate unsecured
long-term borrowings not accounted for at fair value into
floating-rate obligations. Accordingly, excluding the
cumulative impact of changes in the firm’s credit spreads, the
carrying value of unsecured long-term borrowings
approximated fair value as of December 2015 and
December 2014. See Note 7 for further information about
hedging activities. For unsecured long-term borrowings for
which the firm did not elect the fair value option, the
cumulative impact due to changes in the firm’s own credit
spreads would be an increase of less than 1% and an increase
of 2% in the carrying value of such borrowings as of
December 2015 and December 2014, respectively. As these
borrowings are not accounted for at fair value under the fair
value option or at fair value in accordance with other U.S.
GAAP, their fair value is not included in the firm’s fair value
hierarchy in Notes 6 through 8. Had these borrowings been
included in the firm’s fair value hierarchy, substantially all
would have been classified in level 2 as of December 2015
and December 2014.
172 Goldman Sachs 2015 Form 10-K