Goldman Sachs 2009 Annual Report Download - page 157

NOTE 20
Parent Company
Group Inc.— Condensed Statements of Earnings
One
Month
Year Ended Ended
December November November December
(inmillions) 2009 2008 2007 2008
Revenues
Dividends from bank subsidiary $ – $ 2,922 $ 18 $ 5
Dividends from nonbank subsidiaries 8,793 3,716 4,273 130
Undistributed earnings/(loss) of subsidiaries 5,884 (3,971) 6,708 (1,115)
Other revenues (1,018) (2,886) 2,062 (1,004)
Interest income 4,565 7,167 9,049 462
Total revenues 18,224 6,948 22,110 (1,522)
Interest expense 3,112 8,229 8,914 448
Revenues, net of interest expense 15,112 (1,281) 13,196 (1,970)
Operating expenses
Compensation and bene ts 637 122 780 (94)
Other expenses 1,034 471 281 32
Total operating expenses 1,671 593 1,061 (62)
Pre-tax earnings/(loss) 13,441 (1,874) 12,135 (1,908)
Provision/(bene t) for taxes 56 (4,196) 536 (1,128)
Net earnings/(loss) 13,385 2,322 11,599 (780)
Preferred stock dividends 1,193 281 192 248
Net earnings/(loss) applicable to
common shareholders $12,192 $ 2,041 $11,407 $(1,028)
Group Inc.— Condensed Statements of Financial Condition
As of
December November
(inmillions)
2009 2008
Assets
Cash and cash equivalents $ 1,140 $ 1,035
Loans to and receivables from subsidiaries
Bank subsidiary 5,564 19,247
Nonbank subsidiaries 177,952 157,086
Investments in subsidiaries and associates
Bank subsidiary 17,318 13,322
Nonbank subsidiaries and associates 48,421 38,375
Trading assets, at fair value 23,977 40,171
Other assets 11,254 10,414
Total assets $285,626 $279,650
Liabilities and shareholders’ equity
Unsecured short-term borrowings
(1)
With third parties $ 24,604 $ 37,941
With subsidiaries 4,208 7,462
Payables to subsidiaries 509 754
Trading liabilities, at fair value 1,907 3,530
Other liabilities 6,682 5,247
Unsecured long-term borrowings
(2)
With third parties 175,300 158,472
With subsidiaries
(3) 1,702 1,875
Total liabilities 214,912 215,281
Commitments, contingencies and guarantees
Shareholders’ equity
Preferred stock 6,957 16,471
Common stock 8 7
Restricted stock units and employee stock options 6,245 9,284
Additional paid-in capital 39,770 31,071
Retained earnings 50,252 39,913
Accumulated other comprehensive loss (362) (202)
Common stock held in treasury, at cost (32,156) (32,175)
Total shareholders’ equity 70,714 64,369
Total liabilities and shareholders’ equity $285,626 $279,650
Group Inc.— Condensed Statements of Cash Flows
One
Month
Year Ended Ended
December November November December
(inmillions) 2009 2008 2007 2008
Cash  ows from operating activities
Net earnings/(loss) $ 13,385 $ 2,322 $ 11,599 $ (780)
Non-cash items included in net earnings
Undistributed (earnings)/loss
of subsidiaries (5,884) 3,971 (6,708) 1,115
Depreciation and amortization
(4) 39 36 35 3
Deferred income taxes (3,347) (2,178) 877 (847)
Share-based compensation 100 40 459 –
Changes in operating assets and liabilities
Trading assets, at fair value 24,382 (4,661) (17,795) (8,188)
Trading liabilities, at fair value (1,032) 1,559 86 (557)
Other, net
(4) 10,081 (12,162) 12,111 4,091
Net cash provided by/(used for)
operating activities 37,724 (11,073) 664 (5,163)
Cash  ows from investing activities
Purchase of property, leasehold
improvements and equipment (5) (49) (29) –
Proceeds from sales of property, leasehold
improvements and equipment – – 11 –
Issuance of short-term loans to
subsidiaries, net of repayments (6,335) 3,701 (22,668) 1,923
Issuance of term loans to subsidiaries (13,823) (14,242) (48,299) (1,687)
Repayments of term loans by subsidiaries 9,601 24,925 41,143 714
Capital contributions to subsidiaries, net (2,781) (22,245) (4,517) (6,179)
Net cash used for investing activities (13,343) (7,910) (34,359) (5,229)
Cash  ows from  nancing activities
Unsecured short-term borrowings, net (13,266) (10,564) 3,255 4,616
Secured short-term  nancings, net – – (380) –
Proceeds from issuance of
long-term borrowings 22,814 35,645 53,041 9,171
Repayment of long-term borrowings,
including the current portion (27,374) (23,959) (13,984) (3,358)
Common stock repurchased (2) (2,034) (8,956) (1)
Preferred stock repurchased (9,574) – – –
Repurchase of common stock warrants (1,100) – – –
Dividends and dividend equivalents
paid on common stock, preferred
stock and restricted stock units (2,205) (850) (831) –
Proceeds from issuance of common
stock, including stock option exercises 6,260 6,105 791 2
Proceeds from issuance of preferred
stock, net of issuance costs – 13,366 – –
Proceeds from issuance of
common stock warrants – 1,633 – –
Excess tax bene t related to
share-based compensation 135 614 817 –
Cash settlement of
share-based compensation (2) – (1) –
Net cash provided by/(used for)
 nancing activities (24,314) 19,956 33,752 10,430
Net increase in cash and cash equivalents 67 973 57 38
Cash and cash equivalents,
beginning of year 1,073 62 5 1,035
Cash and cash equivalents, end of year $ 1,140 $ 1,035 $ 62 $ 1,073
Supplemental Disclosures:
Cash payments for third-party interest, net of capitalized interest, were $2.77billion, $7.18billion,
$7.78billion and $248million for the years ended December2009, November2008 and
November2007 and one month ended December 2008, respectively.
Cash payments for income taxes, net of refunds, were $2.77billion, $991million, $3.27billion and
$1million for the years ended December2009, November2008 and November 2007 and one month
ended December 2008, respectively.
(1)
Includes $6.57billion and $11.67billion at fair value as of December2009 and November2008, respectively.
(2)
Includes $13.67billion and $10.90billion at fair value as of December2009 and November2008, respectively.
(3) Unsecured long-term borrowings with subsidiaries by maturity date are $1.05billion in 2011,
$98million in 2012, $179million in 2013, $64million in 2014 and $309million in 2015–thereafter.
(4) Prior periods have been reclassi ed to conform to the current presentation.
Goldman Sachs 2009 Annual Report
155
Notes to Consolidated Financial Statements