Goldman Sachs 2012 Annual Report Download - page 172

Notes to Consolidated Financial Statements
The table below presents unsecured long-term borrowings
by maturity date. In the table below:
‰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 holders
are included as unsecured short-term borrowings;
‰unsecured long-term borrowings that are repayable prior
to maturity at the option of the firm are reflected at their
contractual maturity dates; and
‰unsecured long-term borrowings that are redeemable
prior to maturity at the option of the holders are reflected
at the dates such options become exercisable.
As of December 2012
in millions Group Inc. Subsidiaries Total
2014 $ 22,279 $ 496 $ 22,775
2015 20,734 411 21,145
2016 21,717 172 21,889
2017 20,218 494 20,712
2018 - thereafter 73,731 7,053 80,784
Total 1$158,679 $8,626 $167,305
1. Includes $10.51 billion related to interest rate hedges on certain unsecured
long-term borrowings, by year of maturity as follows: $564 million in 2014,
$536 million in 2015, $1.15 billion in 2016, $1.44 billion in 2017 and
$6.82 billion in 2018 and thereafter.
The firm designates certain derivatives as fair value hedges
to effectively convert a substantial portion of its fixed-rate
unsecured long-term borrowings which are not accounted
for at fair value into floating-rate obligations. Accordingly,
excluding the cumulative impact of changes in the firm’s
credit spreads, the carrying value of unsecured long-term
borrowings approximated fair value as of December 2012
and December 2011. See Note 7 for further information
about hedging activities. For unsecured long-term
borrowings for which the firm did not elect the fair value
option, the cumulative impact due to changes in the firm’s
own credit spreads would be an increase of less than 2%
and a reduction of less than 4% in the carrying value of
total unsecured long-term borrowings as of December 2012
and December 2011, respectively. As these borrowings are
not accounted for at fair value under the fair value option
or at fair value in accordance with other U.S. GAAP, their
fair value is 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 long-term borrowings,
after giving effect to hedging activities that converted a
substantial portion of fixed-rate obligations to floating-
rate obligations.
As of December 2012 As of December 2011
in millions Group Inc. Subsidiaries Total Group Inc. Subsidiaries Total
Fixed-rate obligations
At fair value $ 28 $ 94 $ 122 $10 $66$76
At amortized cost 122,500 2,047 24,547 26,839 1,934 28,773
Floating-rate obligations
At fair value 8,166 4,305 12,471 12,903 4,183 17,086
At amortized cost 1127,985 2,180 130,165 126,470 1,140 127,610
Total $158,679 $8,626 $167,305 $166,222 $7,323 $173,545
1. The weighted average interest rates on the aggregate amounts were 2.47% (5.26% related to fixed-rate obligations and 1.98% related to floating-rate obligations)
and 2.59% (5.18% related to fixed-rate obligations and 2.03% related to floating-rate obligations) as of December 2012 and December 2011, respectively. These
rates exclude financial instruments accounted for at fair value under the fair value option.
170 Goldman Sachs 2012 Annual Report