Goldman Sachs 2012 Annual Report Download - page 170

Notes to Consolidated Financial Statements
Note 15.
Short-Term Borrowings
Short-term borrowings were comprised of the following:
As of December
in millions 2012 2011
Other secured financings (short-term) $23,045 $29,185
Unsecured short-term borrowings 44,304 49,038
Total $67,349 $78,223
See Note 9 for further information about other
secured financings.
Unsecured short-term borrowings include the portion of
unsecured long-term borrowings maturing within one year
of the financial statement date and unsecured long-term
borrowings that are redeemable within one year of the
financial statement date at the option of the holder.
The firm accounts for promissory notes, commercial paper
and certain hybrid financial instruments at fair value under
the fair value option. See Note 8 for further information
about unsecured short-term borrowings that are accounted
for at fair value. The carrying value of short-term
borrowings that are not recorded at fair value generally
approximates fair value due to the short-term nature of the
obligations. While these short-term borrowings are carried
at amounts that approximate fair value, they are not
accounted for at fair value under the fair value option or at
fair value in accordance with other U.S. GAAP and
therefore are not included in the firm’s fair value hierarchy
in Notes 6, 7 and 8. Had these borrowings been included in
the firm’s fair value hierarchy, substantially all would have
been classified in level 2 as of December 2012.
The table below presents unsecured short-term borrowings.
As of December
$ in millions 2012 2011
Current portion of unsecured long-term
borrowings 1, 2 $25,344 $28,836
Hybrid financial instruments 12,295 11,526
Promissory notes 260 1,328
Commercial paper 884 1,491
Other short-term borrowings 5,521 5,857
Total $44,304 $49,038
Weighted average interest rate 31.57% 1.89%
1. As of December 2012, no borrowings guaranteed by the Federal Deposit
Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee
Program (TLGP) were outstanding and the program had expired for new
issuances. Includes $8.53 billion as of December 2011, issued by Group Inc.
and guaranteed by the FDIC under the TLGP.
2. Includes $24.65 billion and $27.95 billion as of December 2012 and
December 2011, respectively, issued by Group Inc.
3. The weighted average interest rates for these borrowings include the effect
of hedging activities and exclude financial instruments accounted for at fair
value under the fair value option. See Note 7 for further information about
hedging activities.
168 Goldman Sachs 2012 Annual Report