Goldman Sachs 2012 Annual Report Download - page 219

Notes to Consolidated Financial Statements
Note 30.
Parent Company
Group Inc. — Condensed Statements of Earnings
Year Ended December
in millions 2012 2011 2010
Revenues
Dividends from bank subsidiaries $—$ 1,000 $ —
Dividends from nonbank subsidiaries 3,622 4,967 6,032
Undistributed earnings of subsidiaries 3,682 481 2,884
Other revenues 1,567 (3,381) 964
Total non-interest revenues 8,871 3,067 9,880
Interest income 4,751 4,547 4,153
Interest expense 4,287 3,917 3,429
Net interest income 464 630 724
Net revenues, including net interest income 9,335 3,697 10,604
Operating expenses
Compensation and benefits 452 300 423
Other expenses 448 252 238
Total operating expenses 900 552 661
Pre-tax earnings 8,435 3,145 9,943
Provision/(benefit) for taxes 960 (1,297) 1,589
Net earnings 7,475 4,442 8,354
Preferred stock dividends 183 1,932 641
Net earnings applicable to
common shareholders $7,292 $ 2,510 $ 7,713
Group Inc. — Condensed Statements of Financial Condition
As of December
in millions 2012 2011
Assets
Cash and cash equivalents $14$14
Loans to and receivables from subsidiaries
Bank subsidiaries 4,103 7,196
Nonbank subsidiaries 1174,609 180,397
Investments in subsidiaries and other affiliates
Bank subsidiaries 20,671 19,226
Nonbank subsidiaries and other affiliates 52,646 48,473
Financial instruments owned, at fair value 19,132 20,698
Other assets 4,782 7,912
Total assets $275,957 $283,916
Liabilities and shareholders’ equity
Payables to subsidiaries $ 657 $ 693
Financial instruments sold, but not yet purchased, at
fair value 301 241
Unsecured short-term borrowings
With third parties 229,898 35,368
With subsidiaries 4,253 4,701
Unsecured long-term borrowings
With third parties 3158,761 166,342
With subsidiaries 43,574 1,536
Other liabilities and accrued expenses 2,797 4,656
Total liabilities 200,241 213,537
Commitments, contingencies and guarantees
Shareholders’ equity
Preferred stock 6,200 3,100
Common stock 88
Restricted stock units and employee stock options 3,298 5,681
Additional paid-in capital 48,030 45,553
Retained earnings 65,223 58,834
Accumulated other comprehensive loss (193) (516)
Stock held in treasury, at cost (46,850) (42,281)
Total shareholders’ equity 75,716 70,379
Total liabilities and shareholders’ equity $275,957 $283,916
Group Inc. — Condensed Statements of Cash Flows
Year Ended December
in millions 2012 2011 2010
Cash flows from operating activities
Net earnings $ 7,475 $ 4,442 $ 8,354
Adjustments to reconcile net earnings to net
cash provided by operating activities
Undistributed earnings of subsidiaries (3,682) (481) (2,884)
Depreciation and amortization 15 14 18
Deferred income taxes (1,258) 809 214
Share-based compensation 81 244 393
Changes in operating assets and liabilities
Financial instruments owned, at fair value 1,464 3,557 (176)
Financial instruments sold, but not yet
purchased, at fair value (3) (536) (1,091)
Other, net 2,621 1,422 10,852
Net cash provided by operating activities 6,713 9,471 15,680
Cash flows from investing activities
Purchase of property, leasehold
improvements and equipment (12) (42) (15)
Repayments of short-term loans by
subsidiaries, net of issuances 6,584 20,319 (9,923)
Issuance of term loans to subsidiaries (17,414) (42,902) (5,532)
Repayments of term loans by subsidiaries 18,715 21,850 1,992
Capital distributions from/(contributions to)
subsidiaries, net (298) 4,642 (1,038)
Net cash provided by/(used for)
investing activities 7,575 3,867 (14,516)
Cash flows from financing activities
Unsecured short-term borrowings, net (2,647) (727) 3,137
Proceeds from issuance of
long-term borrowings 26,160 27,251 21,098
Repayment of long-term borrowings,
including the current portion (35,608) (27,865) (21,838)
Preferred stock repurchased —(3,857) —
Common stock repurchased (4,640) (6,048) (4,183)
Dividends and dividend equivalents paid on
common stock, preferred stock and
restricted stock units (1,086) (2,771) (1,443)
Proceeds from issuance of preferred stock,
net of issuance costs 3,087 ——
Proceeds from issuance of common stock,
including stock option exercises 317 368 581
Excess tax benefit related to
share-based compensation 130 358 352
Cash settlement of
share-based compensation (1) (40) (1)
Net cash used for financing activities (14,288) (13,331) (2,297)
Net increase/(decrease) in cash and
cash equivalents —7 (1,133)
Cash and cash equivalents, beginning of year 14 7 1,140
Cash and cash equivalents, end of year $14$14$ 7
SUPPLEMENTAL DISCLOSURES:
Cash payments for third-party interest, net of capitalized interest, were
$5.11 billion, $3.83 billion and $3.07 billion for the years ended
December 2012, December 2011 and December 2010, respectively.
Cash payments for income taxes, net of refunds, were $1.59 billion,
$1.39 billion and $2.05 billion for the years ended December 2012,
December 2011 and December 2010, respectively.
Non-cash activity:
During the year ended December 2011, $103 million of common stock was
issued in connection with the acquisition of GS Australia.
1. Primarily includes overnight loans, the proceeds of which can be used to
satisfy the short-term obligations of Group Inc.
2. Includes $4.91 billion and $6.25 billion at fair value as of December 2012 and
December 2011, respectively.
3. Includes $8.19 billion and $12.91 billion at fair value as of December 2012
and December 2011, respectively.
4. Unsecured long-term borrowings with subsidiaries by maturity date are
$434 million in 2014, $191 million in 2015, $2.08 billion in 2016, $107 million
in 2017, and $766 million in 2018-thereafter.
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