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Goldman Sachs 2009 Annual Report
111
Notes to Consolidated Financial Statements
The Fair Value Option
GAINS/(LOSSES)
The following table sets forth the gains/(losses) included in earnings for the years ended December2009, November2008 and
November2007 and one month ended December2008 as a result of the  rm electing to apply the fair value option to certain
nancial assets and  nancial liabilities, as described in Note2. The table excludes gains and losses related to (i)trading assets,
at fair value, and trading liabilities, at fair value, (ii)gains and losses on assets and liabilities that would have been accounted for
at fair value under other GAAP if the  rm had not elected the fair value option, and (iii)gains and losses on secured  nancings
related to transfers of  nancial assets accounted for as  nancings rather than sales, as such gains and losses are offset by gains and
losses on the related  nancial assets.
Year Ended One Month Ended
December November November December
(inmillions) 2009 2008 2007 2008
Unsecured long-term borrowings
(1) $ (884) $ 915 $ 202 $(104)
Other secured  nancings
(2) (822) 894 (293) (2)
Unsecured short-term borrowings
(3) (182) 266 6 (9)
Receivables from customers and counterparties
(4) 255 (68) – (41)
Other liabilities and accrued expenses
(5) (214) 131 – 7
Other
(6) 79 (83) 18 (60)
Total
(7) $(1,768) $2,055 $ (67) $(209)
(1) Excludes gains/(losses) of $(4.15)billion, $2.42billion, $(2.18)billion and $(623)million for the years ended December2009, November2008 and
November2007 and one month ended December2008, respectively, related to the embedded derivative component of hybrid  nancial instruments. Such
gains and losses would have been recognized even if the  rm had not elected to account for the entire hybrid instrument at fair value under the fair valueoption.
(2) Excludes gains of $48million, $1.29billion and $2.19billion for the years ended December2009, November2008 and November2007, respectively, related
to  nancings recorded as a result of transactions that were accounted for as secured nancings rather than sales. Changes in the fair value of these secured
nancings are offset by changes in the fair value of the related  nancial instruments included in “Trading assets, at fair value” in the consolidated statements of
nancial condition. Such gains/(losses) were not material for the one month ended December2008.
(3) Excludes gains/(losses) of $(3.15)billion, $6.37billion, $(1.07)billion and $92million for the years ended December2009, November2008 and November2007
and one month ended December2008, respectively, related to the embedded derivative component of hybrid  nancial instruments. Such gains and losses
would have been recognized even if the  rm had not elected to account for the entire hybrid instrument at fair value under the fair value option.
(4) Primarily consists of gains/(losses) on certain reinsurance contracts.
(5) Primarily consists of gains/(losses) on certain insurance and reinsurance contracts.
(6) Primarily consists of gains/(losses) on resale and repurchase agreements, and securities borrowed and loaned within Trading and Principal Investments.
(7) Reported in “Trading and principal investments” in the consolidated statements of earnings. The amounts exclude contractual interest, which is included in
“Interest income” and “Interest expense” in the consolidated statements of earnings, for all instruments other than hybrid  nancial instruments.