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notes฀to฀consolidated฀financial฀statements
88฀฀฀G O L D M A N ฀ S A C H S ฀ 2004฀ ANNUAL฀REPO RT
88฀฀฀G O L D M A N ฀ S A C H S ฀ 2 004฀ A N N U A L ฀ R E P O RT
Nonrecourse debt is debt that Group Inc. is not directly or indirectly obligated to repay. Long-term borrowings include nonrecourse
debt issued by the following subsidiaries:
฀ ฀ AS฀OF฀NOVEMBER
(IN฀MILLIONS)฀ 2004฀ 2003
William Street Funding Corporation $฀ 5,144 $3,173
Variable interest entities 4,546 1,635
Other subsidiaries(1) 2,364 622
Total $12,054 $5,430
(1)฀฀Includes฀$978฀million฀and฀$583฀million฀of฀nonrecourse฀debt฀issued฀by฀the฀firm’s฀consolidated฀power฀plant฀operations฀as฀of฀November฀2004฀and฀November฀2003,฀
respectively.
Long-term borrowings by fiscal maturity date are set forth below:
฀ ฀ AS฀OF฀NOVEMBER
฀ 2004(1)(2)฀2003(1)(2)
฀฀฀ U.S.฀ NON-U.S.฀ ฀ U.S.฀ NON-U.S.
(IN฀MILLIONS)฀ DOLLAR฀ DOLLAR฀ TOTAL฀ DOLLAR฀ DOLLAR฀ TOTAL
2005 $฀฀฀฀฀฀฀—฀ $฀฀฀฀฀฀฀—฀ $฀฀฀฀฀฀฀— $฀ 7,854฀ $฀ 4,598฀ $12,452
2006 10,691฀ 2,616฀ 13,307฀ 6,133 1,576฀ 7,709
2007 7,116฀ 948฀ 8,064฀ 1,274 564฀ 1,838
2008 4,626฀ 3,179฀ 7,805฀ 3,105 2,546฀ 5,651
2009 9,061฀ 4,116฀ 13,177฀ 5,317 1,100฀ 6,417
2010-thereafter 26,617฀ 11,726฀ 38,343 17,828฀ 5,587฀ 23,415
Total $58,111฀ $22,585฀ $80,696 $41,511฀ $15,971฀ $57,482
(1)฀฀Long-term฀borrowings฀maturing฀within฀one฀year฀and฀certain฀long-term฀borrowings฀that฀may฀be฀redeemable฀within฀one฀year฀at฀the฀option฀of฀the฀holder฀are฀included฀
as฀short-term฀borrowings฀in฀the฀consolidated฀statements฀of฀financial฀condition.
(2)฀฀Long-term฀borrowings฀repayable฀at฀the฀option฀of฀the฀firm฀are฀reflected฀at฀their฀contractual฀maturity฀dates.฀Certain฀long-term฀borrowings฀that฀may฀be฀redeemable฀
prior฀to฀maturity฀at฀the฀option฀of฀the฀holder฀are฀reflected฀at฀the฀dates฀such฀options฀become฀exercisable.
The firm enters into derivative contracts, such as interest rate
futures contracts, interest rate swap agreements, currency swap
agreements and equity-linked contracts, to effectively convert a
substantial portion of its long-term borrowings into U.S.
dollar-based floating rate obligations. Accordingly, the aggre-
gate carrying value of these long-term borrowings and related
hedges approximates fair value.
BES฀•฀Phone฀(201)฀635-5240฀฀•฀FAX฀(201)฀635-5199
BPX/S10829฀•฀Flow฀16฀•฀Proof฀12฀•฀2/4/05฀•RUSH
The effective weighted average interest rates for long-term borrowings, after hedging activities, are set forth below:
฀ ฀ AS฀OF฀NOVEMBER
฀ ฀ 2004฀ 2003
($฀IN฀MILLIONS)฀ AMOUNT฀ RATE฀ AMOUNT฀ RATE
Fixed rate obligations $฀ 2,383฀ 6.56% $฀ 1,517฀ 7.43%
Floating rate obligations 78,313฀ 2.48 55,965฀ 1.79
Total $80,696฀ 2.60฀ $57,482฀ 1.94