Goldman Sachs 2012 Annual Report Download - page 152

Notes to Consolidated Financial Statements
Gains and Losses on Financial Assets and Financial
Liabilities Accounted for at Fair Value Under the
Fair Value Option
The table below presents the gains and losses recognized as
a result of the firm electing to apply the fair value option to
certain financial assets and financial liabilities. These gains
and losses are included in “Market making” and “Other
principal transactions.” The table below also includes gains
and losses on the embedded derivative component of hybrid
financial instruments included in unsecured short-term
borrowings and unsecured long-term borrowings. These
gains and losses would have been recognized under other
U.S. GAAP even if the firm had not elected to account for
the entire hybrid instrument at fair value.
The amounts in the table exclude contractual interest,
which is included in “Interest income” and “Interest
expense,” for all instruments other than hybrid financial
instruments. See Note 23 for further information about
interest income and interest expense.
Gains/(Losses) on Financial Assets and Financial Liabilities
at Fair Value Under the Fair Value Option
Year Ended December
in millions 2012 2011 2010
Receivables from customers and counterparties 1$ 190 $ 97 $ (97)
Other secured financings (190) (63) (227)
Unsecured short-term borrowings 2(973) 2,149 (1,455)
Unsecured long-term borrowings 3(1,523) 2,336 (1,169)
Other liabilities and accrued expenses 4(1,486) (911) 50
Other 5(81) 90 (10)
Total $(4,063) $3,698 $(2,908)
1. Primarily consists of gains/(losses) on certain reinsurance contracts and certain transfers accounted for as receivables rather than purchases.
2. Includes gains/(losses) on the embedded derivative component of hybrid financial instruments of $(814) million, $2.01 billion, and $(1.49) billion as of
December 2012, December 2011 and December 2010, respectively.
3. Includes gains/(losses) on the embedded derivative component of hybrid financial instruments of $(887) million, $1.80 billion and $(1.32) billion as of December 2012,
December 2011 and December 2010, respectively.
4. Primarily consists of gains/(losses) on certain insurance contracts.
5. Primarily consists of gains/(losses) on resale and repurchase agreements, securities borrowed and loaned and deposits.
Excluding the gains and losses on the instruments
accounted for under the fair value option described above,
“Market making” and “Other principal transactions”
primarily represent gains and losses on “Financial
instruments owned, at fair value” and “Financial
instruments sold, but not yet purchased, at fair value.”
150 Goldman Sachs 2012 Annual Report