Goldman Sachs 2002 Annual Report Download - page 47

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Managem ent’s D iscussion and A nalysis
GO L D M A N SA CH S 2002 A N N UAL R EPO RT 45
The following table sets forth our contractual obligations as of November 2002:
CONTRACTUAL OBLIGATIONS
2008-
(IN MILLIONS) 2003 2004-2005 2006-2007 THEREAFTER TOTAL
Long-term borrowings by contract maturity $ — $15,909 $4,642 $18,160 $38,711
Minimum rental commitments 350 620 505 1,827 3,302
As of November 2002, our long-term borrowings were
$38.71 billion. Substantially all of our long-term bor-
rowings were unsecured and consisted principally of sen-
ior borrowings with maturities extending through 2032.
See Note 6 to the consolidated financial statements for
further information regarding our long-term borrowings.
As of November 2002, our minimum rental commit-
ments, net of minimum sublease rentals, under non-
cancelable leases were $3.30 billion. These lease
commitments, principally for office space, expire on var-
ious dates through 2029. Certain agreements are subject
to periodic escalation provisions for increases in real
estate taxes and other charges.
Our occupancy expenses include costs associated with
office space held in excess of our current requirements,
primarily due to the impact of the levels of current busi-
ness activity on our previously anticipated growth in
headcount. This excess space is being held for potential
future growth. We continually review our space require-
ments and may, from time to time, reduce capacity
through the use of sublease contracts or early termination
agreements. We may incur costs in connection with such
reductions in our global office space. Where we have
unoccupied space that we may occupy in the future, we
will continue to charge the underlying operating costs to
earnings as incurred.
The following table sets forth our contingent commitments as of November 2002:
CONTINGENT COMMITMENTS
AMOUNT OF COMMITMENT EXPIRATION BY PERIOD
2008-
(IN MILLIONS) 2003 2004-2005 2006-2007 THEREAFTER TOTAL
Commitments to extend credit $ 6,126 $1,224 $1,089 $ 975 $ 9,414
Commitments under letters of credit issued
by banks to counterparties 11,607 15 10 — 11,632
Other commercial commitments(1) 572 832 1 493 1,898
Total $18,305 $2,071 $1,100 $1,468 $22,944
(1) Includes our merchant banking commitments and guarantees related to construction-related obligations and our fund management activities.
As of November 2002, we had commitments to enter
into forward secured financing transactions, including
certain repurchase and resale agreements and secured
borrowing and lending arrangements, of $40.04 billion.
See Note 7 to the consolidated financial statements
for further information regarding our commitments and
contingencies.