Goldman Sachs 2007 Annual Report Download - page 120

Notes to Consolidated Financial Statements
declared, will be payable semiannually at a fixed annual rate of
5.79% if the stock is issued prior to June 1, 2012 and quarterly
thereafter, at a rate per annum equal to the greater of (i) three-
month LIBOR plus .77% and (ii) 4%. Dividends on Series F
preferred stock, if declared, will be payable quarterly at a rate
per annum equal to three-month LIBOR plus .77% if the stock
is issued prior to September 1, 2012 and quarterly thereafter,
at a rate per annum equal to the greater of (i) three-month
LIBOR plus .77% and (ii) 4%. The preferred stock may be
redeemed at the option of the firm on the stock purchase dates
or any day thereafter, subject to the approval of the Securities
and Exchange Commission (SEC) and certain covenant
restrictions governing the firm’s ability to redeem or purchase
the preferred stock without issuing common stock or other
instruments with equity-like characteristics.
Dividends declared per preferred share were $1,563.51,
$1,550.00, $1,563.51 and $1,543.06 for Series A, Series B,
Series C and Series D preferred stock, respectively, in 2007.
Dividends declared per preferred share were $1,434.79,
$1,593.06, $1,465.19 and $709.10 for Series A, Series B,
Series C and Series D preferred stock, respectively, in 2006.
In addition, on December 17, 2007, the Board declared
dividends per preferred share of $351.84, $387.50, $351.84
and $346.84 for Series A, Series B, Series C and Series D
preferred stock, respectively, to be paid on February 11, 2008
to preferred shareholders of record on January 27, 2008.
Each share of preferred stock issued and outstanding has a par
value of $0.01, has a liquidation preference of $25,000, is
represented by 1,000 depositary shares and is redeemable at
the firm’s option at a redemption price equal to $25,000 plus
declared and unpaid dividends. Dividends on each series of
preferred stock, if declared, are payable quarterly in arrears.
The firm’s ability to declare or pay dividends on, or purchase,
redeem or otherwise acquire, its common stock is subject
to certain restrictions in the event that the firm fails to pay or
set aside full dividends on the preferred stock for the latest
completed dividend period. All series of preferred stock are
pari passu and have a preference over the firm’s common stock
upon liquidation.
In the second quarter of 2007, the Board authorized 17,500.1
shares of perpetual Non-Cumulative Preferred Stock, Series E
and 5,000.1 shares of perpetual Non-Cumulative Preferred
Stock, Series F in connection with the APEX issuance (see Note 5
for further information on the APEX issuance). Under the stock
purchase contracts, the firm will issue on the relevant stock
purchase dates (on or before June 1, 2013 and September 1, 2013
for Series E and Series F preferred stock, respectively) one share
of Series E and Series F preferred stock to Goldman Sachs
Capital II and III, respectively, for each $100,000 principal
amount of subordinated notes held by these trusts. When
issued, each share of Series E and Series F preferred stock will
have a par value of $0.01 and a liquidation preference of
$100,000 per share. Dividends on Series E preferred stock, if
The following table sets forth the firm’s accumulated other comprehensive income/(loss) by type:
As of November
(in millions) 2007 2006
Adjustment from adoption of SFAS No. 158, net of tax $(194) $ —
Currency translation adjustment, net of tax 68 29
Minimum pension liability adjustment, net of tax — (38)
Net gains on cash flow hedges, net of tax — 2
Net unrealized gains on available-for-sale securities, net of tax 8
(1) 28
Total accumulated other comprehensive income, net of tax $(118) $ 21
(1)
Consists of net unrealized gains of $9 million on available-for-sale securities held by investees accounted for under the equity method and net unrealized losses of
$1 million on available-for-sale securities held by the firm’s insurance subsidiaries.
118 Goldman Sachs 2007 Annual Report