Goldman Sachs 2012 Annual Report Download - page 114

Notes to Consolidated Financial Statements
Note 1.
Description of Business
The Goldman Sachs Group, Inc. (Group Inc.), a Delaware
corporation, together with its consolidated subsidiaries
(collectively, the firm), is a leading global investment
banking, securities and investment management firm that
provides a wide range of financial services to a substantial
and diversified client base that includes corporations,
financial institutions, governments and high-net-worth
individuals. Founded in 1869, the firm is headquartered in
New York and maintains offices in all major financial
centers around the world.
The firm reports its activities in the following four
business segments:
Investment Banking
The firm provides a broad range of investment banking
services to a diverse group of corporations, financial
institutions, investment funds and governments. Services
include strategic advisory assignments with respect to
mergers and acquisitions, divestitures, corporate defense
activities, risk management, restructurings and spin-offs,
and debt and equity underwriting of public offerings and
private placements, including domestic and cross-border
transactions, as well as derivative transactions directly
related to these activities.
Institutional Client Services
The firm facilitates client transactions and makes markets
in fixed income, equity, currency and commodity products,
primarily with institutional clients such as corporations,
financial institutions, investment funds and governments.
The firm also makes markets in and clears client
transactions on major stock, options and futures exchanges
worldwide and provides financing, securities lending and
other prime brokerage services to institutional clients.
Investing & Lending
The firm invests in and originates loans to provide
financing to clients. These investments and loans are
typically longer-term in nature. The firm makes
investments, directly and indirectly through funds that the
firm manages, in debt securities and loans, public and
private equity securities, real estate, consolidated
investment entities and power generation facilities.
Investment Management
The firm provides investment management services and
offers investment products (primarily through separately
managed accounts and commingled vehicles, such as
mutual funds and private investment funds) across all
major asset classes to a diverse set of institutional and
individual clients. The firm also offers wealth advisory
services, including portfolio management and financial
counseling, and brokerage and other transaction services to
high-net-worth individuals and families.
Note 2.
Basis of Presentation
These consolidated financial statements are prepared in
accordance with accounting principles generally accepted in
the United States (U.S. GAAP) and include the accounts of
Group Inc. and all other entities in which the firm has a
controlling financial interest. Intercompany transactions
and balances have been eliminated.
All references to 2012, 2011 and 2010 refer to the firm’s
years ended, or the dates, as the context requires,
December 31, 2012, December 31, 2011 and
December 31, 2010, respectively. Any reference to a future
year refers to a year ending on December 31 of that year.
Certain reclassifications have been made to previously
reported amounts to conform to the current presentation.
112 Goldman Sachs 2012 Annual Report