Document and Company Informatio
Document and Company Information (USD $) | |||
In Billions, except Share data | 12 Months Ended
Dec. 31, 2009 | Feb. 12, 2010
| Jun. 26, 2009
|
Document and Company Information [Abstract] | |||
Entity Registrant Name | GOLDMAN SACHS GROUP INC | ||
Entity Central Index Key | 0000886982 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | 73.9 | ||
Entity Common Stock, Shares Outstanding | 526,251,090 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (USD $) | |||||||||||||||||||
In Millions, except Per Share data | 1 Months Ended
Dec. 26, 2008 | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Nov. 28, 2008 | 12 Months Ended
Nov. 30, 2007 | |||||||||||||||
Revenues | |||||||||||||||||||
Investment banking | $135 | $4,797 | $5,179 | $7,555 | |||||||||||||||
Trading and principal investments | (964) | 28,879 | 8,095 | 29,714 | |||||||||||||||
Asset management and securities services | 327 | 4,090 | 4,672 | 4,731 | |||||||||||||||
Total non-interest revenues | (502) | 37,766 | 17,946 | 42,000 | |||||||||||||||
Interest income | 1,687 | 13,907 | 35,633 | 45,968 | |||||||||||||||
Interest expense | 1,002 | 6,500 | 31,357 | 41,981 | |||||||||||||||
Net interest income | 685 | 7,407 | 4,276 | 3,987 | |||||||||||||||
Net revenues, including net interest income | 183 | 45,173 | 22,222 | 45,987 | |||||||||||||||
Operating expenses | |||||||||||||||||||
Compensation and benefits | 744 | 16,193 | 10,934 | 20,190 | |||||||||||||||
Brokerage, clearing, exchange and distribution fees | 165 | 2,298 | 2,998 | 2,758 | |||||||||||||||
Market development | 16 | 342 | 485 | 601 | |||||||||||||||
Communications and technology | 62 | 709 | 759 | 665 | |||||||||||||||
Depreciation and amortization | 111 | 1,734 | 1,262 | 819 | |||||||||||||||
Occupancy | 82 | 950 | 960 | 975 | |||||||||||||||
Professional fees | 58 | 678 | 779 | 714 | |||||||||||||||
Other expenses | 203 | 2,440 | 1,709 | 1,661 | |||||||||||||||
Total non-compensation expenses | 697 | 9,151 | 8,952 | 8,193 | |||||||||||||||
Total operating expenses | 1,441 | 25,344 | 19,886 | 28,383 | |||||||||||||||
Pre-tax earnings/(loss) | (1,258) | 19,829 | 2,336 | 17,604 | |||||||||||||||
Provision/(Benefit) for taxes | (478) | 6,444 | 14 | 6,005 | |||||||||||||||
Net earnings/(loss) | (780) | 13,385 | 2,322 | 11,599 | |||||||||||||||
Preferred stock dividends | 248 | 1,193 | 281 | 192 | |||||||||||||||
Net earnings/(loss) applicable to common shareholders | ($1,028) | $12,192 | $2,041 | $11,407 | |||||||||||||||
Earnings (loss) per common share | |||||||||||||||||||
Basic | -2.15 | 23.74 | 4.67 | 26.34 | |||||||||||||||
Diluted | -2.15 | 22.13 | 4.47 | 24.73 | |||||||||||||||
Dividends declared per common share | 0.47 | [1] | |||||||||||||||||
Average common shares outstanding | |||||||||||||||||||
Basic | 485.5 | 512.3 | 437 | 433 | |||||||||||||||
Diluted | 485.5 | 550.9 | 456.2 | 461.2 | |||||||||||||||
[1]Rounded to the nearest penny. Exact dividend amount was $0.4666666 per common share and was reflective of a four-month period (December 2008 through March 2009), due to the change in the firm's fiscal year-end. |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (USD $) | ||
In Millions | Dec. 31, 2009
| Nov. 28, 2008
|
Assets | ||
Cash and cash equivalents | $38,291 | $15,740 |
Cash and securities segregated for regulatory and other purposes (includes $18,853 and $78,830 at fair value as of December 2009 and November 2008, respectively) | 36,663 | 106,664 |
Securities purchased under agreements to resell and federal funds sold (includes $144,279 and $116,671 at fair value as of December 2009 and November 2008, respectively) | 144,279 | 122,021 |
Securities borrowed (includes $66,329 and $59,810 at fair value as of December 2009 and November 2008, respectively) | 189,939 | 180,795 |
Receivables from brokers, dealers and clearing organizations | 12,597 | 25,899 |
Receivables from customers and counterparties (includes $1,925 and $1,598 at fair value as of December 2009 and November 2008, respectively) | 55,303 | 64,665 |
Trading assets, at fair value (includes $31,485 and $26,313 pledged as collateral as of December 2009 and November 2008, respectively) | 342,402 | 338,325 |
Other assets | 29,468 | 30,438 |
Total assets | 848,942 | 884,547 |
Liabilities and shareholders' equity | ||
Deposits (includes $1,947 and $4,224 at fair value as of December 2009 and November 2008, respectively) | 39,418 | 27,643 |
Securities sold under agreements to repurchase, at fair value | 128,360 | 62,883 |
Securities loaned (includes $6,194 and $7,872 at fair value as of December 2009 and November 2008, respectively) | 15,207 | 17,060 |
Other secured financings (includes $15,228 and $20,249 at fair value as of December 2009 and November 2008, respectively) | 24,134 | 38,683 |
Payables to brokers, dealers and clearing organizations | 5,242 | 8,585 |
Payables to customers and counterparties | 180,392 | 245,258 |
Trading liabilities, at fair value | 129,019 | 175,972 |
Unsecured short-term borrowings, including the current portion of unsecured long-term borrowings (includes $18,403 and $23,075 at fair value as of December 2009 and November 2008, respectively) | 37,516 | 52,658 |
Unsecured long-term borrowings (includes $21,392 and $17,446 at fair value as of December 2009 and November 2008, respectively) | 185,085 | 168,220 |
Other liabilities and accrued expenses (includes $2,054 and $978 at fair value as of December 2009 and November 2008, respectively) | 33,855 | 23,216 |
Total liabilities | 778,228 | 820,178 |
Shareholders' equity | ||
Preferred stock, par value $0.01 per share; aggregate liquidation preference of $8,100 and $18,100 as of December 2009 and November 2008, respectively | 6,957 | 16,471 |
Common stock, par value $0.01 per share; 4,000,000,000 shares authorized, 753,412,247 and 680,953,836 shares issued as of December 2009 and November 2008, respectively, and 515,113,890 and 442,537,317 shares outstanding as of December 2009 and November 2008, respectively | 8 | 7 |
Restricted stock units and employee stock options | 6,245 | 9,284 |
Nonvoting common stock, par value $0.01 per share; 200,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 39,770 | 31,071 |
Retained earnings | 50,252 | 39,913 |
Accumulated other comprehensive loss | (362) | (202) |
Common stock held in treasury, at cost, par value $0.01 per share; 238,298,357 and 238,416,519 shares as of December 2009 and November 2008, respectively | (32,156) | (32,175) |
Total shareholders' equity | 70,714 | 64,369 |
Total liabilities and shareholders' equity | $848,942 | $884,547 |
1_Consolidated Statements of Fi
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | ||
In Millions, except Share data | Dec. 31, 2009
| Nov. 28, 2008
|
Assets | ||
Cash and securities segregated for regulatory and other purposes at fair value | $18,853 | $78,830 |
Securities purchased under agreements to resell and federal funds sold at fair value | 144,279 | 116,671 |
Securities borrowed at fair value | 66,329 | 59,810 |
Receivables from customers and counterparties at fair value | 1,925 | 1,598 |
Trading assets at fair value pledged as collateral | 31,485 | 26,313 |
Liabilities and shareholders' equity | ||
Deposits at fair value | 1,947 | 4,224 |
Securities loaned at fair value | 6,194 | 7,872 |
Other secured financings at fair value | 15,228 | 20,249 |
Unsecured short-term borrowings, including the current portion of unsecured long-term borrowings, at fair value | 18,403 | 23,075 |
Unsecured long-term borrowings at fair value | 21,392 | 17,446 |
Other liabilities and accrued expenses at fair value | 2,054 | 978 |
Shareholders' equity | ||
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, liquidation preference | $8,100 | $18,100 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued | 753,412,247 | 680,953,836 |
Common stock, shares outstanding | 515,113,890 | 442,537,317 |
Nonvoting common stock, par value | 0.01 | 0.01 |
Nonvoting common stock, shares authorized | 200,000,000 | 200,000,000 |
Treasury stock, par value | 0.01 | 0.01 |
Treasury stock, shares | 238,298,357 | 238,416,519 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity (USD $) | |||||||||||||||||||
In Millions | Previously reported
Retained earnings | Preferred Stock
| Common Stock
| Restricted Stock Units and Employee Stock Options
| Additional paid-in capital
| Retained earnings
| Accumulated other comprehensive income/(loss)
| Common stock held in treasury, at cost
| Total
| ||||||||||
Balance at Nov. 25, 2005 | $0 | ||||||||||||||||||
Cumulative effect from adoption of amended principles related to accounting for uncertainty in income taxes | 0 | ||||||||||||||||||
Cumulative effect of adjustment from adoption of amended accounting principles related to fair value measurements, net of tax | 51 | ||||||||||||||||||
Cumulative effect of adjustment from adoption of amended accounting principles related to the fair value option, net of tax | (45) | ||||||||||||||||||
Balance at Nov. 24, 2006 | 27,868 | 3,100 | 6 | 6,290 | 19,731 | 27,874 | 21 | (21,230) | |||||||||||
Cumulative effect from adoption of amended principles related to accounting for uncertainty in income taxes | (201) | ||||||||||||||||||
Cumulative effect of adjustment from adoption of amended accounting principles related to fair value measurements, net of tax | 0 | ||||||||||||||||||
Cumulative effect of adjustment from adoption of amended accounting principles related to the fair value option, net of tax | 0 | ||||||||||||||||||
Accretion | 0 | 0 | |||||||||||||||||
Repurchased | 0 | ||||||||||||||||||
Issuance and amortization of restricted stock units and employee stock options | 4,684 | ||||||||||||||||||
Delivery of common stock underlying restricted stock units | (1,548) | ||||||||||||||||||
Forfeiture of restricted stock units and employee stock options | (113) | ||||||||||||||||||
Exercise of employee stock options | (11) | ||||||||||||||||||
Repurchased | (8,956) | ||||||||||||||||||
Reissued | 27 | ||||||||||||||||||
Issued | 0 | 0 | 0 | ||||||||||||||||
Issuance of common stock warrants | 0 | ||||||||||||||||||
Repurchase of common stock warrants | 0 | ||||||||||||||||||
Delivery of common stock underlying restricted stock units and proceeds from the exercise of employee stock options | 2,338 | ||||||||||||||||||
Cancellation of restricted stock units in satisfaction of withholding tax requirements | (929) | ||||||||||||||||||
Stock purchase contract fee related to automatic preferred enhanced capital securities | (20) | ||||||||||||||||||
Preferred and common stock issuance costs | 0 | ||||||||||||||||||
Excess net tax benefit/(provision) related to share-based compensation | 908 | ||||||||||||||||||
Cash settlement of share-based compensation | (1) | ||||||||||||||||||
Adjustment from adoption of amended accounting principles related to employers' accounting for defined benefit pension and other postretirement plans, net of tax | (194) | ||||||||||||||||||
Currency translation adjustment, net of tax | 39 | 39 | |||||||||||||||||
Pension and postretirement liability adjustments, net of tax | 38 | 38 | |||||||||||||||||
Net gains/(losses) on cash flow hedges, net of tax | (2) | (2) | |||||||||||||||||
Net unrealized gains/(losses) on available-for-sale securities, net of tax | (12) | (12) | |||||||||||||||||
Reclassification to retained earnings from adoption of amended accounting principles related to the fair value option, net of tax | (8) | ||||||||||||||||||
Dividends declared on preferred stock | (192) | ||||||||||||||||||
Net earnings/(loss) | 11,599 | 11,599 | |||||||||||||||||
Dividends and dividend equivalents declared on common stock and restricted stock units | (639) | ||||||||||||||||||
Balance at Nov. 30, 2007 | 38,642 | 3,100 | 6 | 9,302 | 22,027 | 38,441 | (118) | (30,159) | 42,800 | ||||||||||
Cumulative effect from adoption of amended principles related to accounting for uncertainty in income taxes | 0 | ||||||||||||||||||
Cumulative effect of adjustment from adoption of amended accounting principles related to fair value measurements, net of tax | 0 | ||||||||||||||||||
Cumulative effect of adjustment from adoption of amended accounting principles related to the fair value option, net of tax | 0 | ||||||||||||||||||
Accretion | 4 | (4) | |||||||||||||||||
Repurchased | 0 | ||||||||||||||||||
Issuance and amortization of restricted stock units and employee stock options | 2,254 | ||||||||||||||||||
Delivery of common stock underlying restricted stock units | (1,995) | ||||||||||||||||||
Forfeiture of restricted stock units and employee stock options | (274) | ||||||||||||||||||
Exercise of employee stock options | (3) | ||||||||||||||||||
Repurchased | (2,037) | ||||||||||||||||||
Reissued | 21 | ||||||||||||||||||
Issued | 13,367 | 1 | 5,750 | ||||||||||||||||
Issuance of common stock warrants | 1,633 | ||||||||||||||||||
Repurchase of common stock warrants | 0 | ||||||||||||||||||
Delivery of common stock underlying restricted stock units and proceeds from the exercise of employee stock options | 2,331 | ||||||||||||||||||
Cancellation of restricted stock units in satisfaction of withholding tax requirements | (1,314) | ||||||||||||||||||
Stock purchase contract fee related to automatic preferred enhanced capital securities | 0 | ||||||||||||||||||
Preferred and common stock issuance costs | (1) | ||||||||||||||||||
Excess net tax benefit/(provision) related to share-based compensation | 645 | ||||||||||||||||||
Cash settlement of share-based compensation | 0 | ||||||||||||||||||
Adjustment from adoption of amended accounting principles related to employers' accounting for defined benefit pension and other postretirement plans, net of tax | 0 | ||||||||||||||||||
Currency translation adjustment, net of tax | (98) | (98) | |||||||||||||||||
Pension and postretirement liability adjustments, net of tax | 69 | 69 | |||||||||||||||||
Net gains/(losses) on cash flow hedges, net of tax | 0 | 0 | |||||||||||||||||
Net unrealized gains/(losses) on available-for-sale securities, net of tax | (55) | (55) | |||||||||||||||||
Reclassification to retained earnings from adoption of amended accounting principles related to the fair value option, net of tax | 0 | ||||||||||||||||||
Dividends declared on preferred stock | (204) | ||||||||||||||||||
Net earnings/(loss) | 2,322 | 2,322 | |||||||||||||||||
Dividends and dividend equivalents declared on common stock and restricted stock units | (642) | ||||||||||||||||||
Balance at Nov. 28, 2008 | 16,471 | 7 | 9,284 | 31,071 | 39,913 | (202) | (32,175) | 64,369 | |||||||||||
Balance at Dec. 26, 2008 | 38,579 | 16,483 | [1] | 7 | [1] | 9,463 | [1] | 31,070 | [1] | 38,579 | [1] | (372) | [1] | (32,176) | [1] | ||||
Accretion | 48 | (48) | |||||||||||||||||
Repurchased | (9,574) | ||||||||||||||||||
Issuance and amortization of restricted stock units and employee stock options | 2,064 | ||||||||||||||||||
Delivery of common stock underlying restricted stock units | (5,206) | ||||||||||||||||||
Forfeiture of restricted stock units and employee stock options | (73) | ||||||||||||||||||
Exercise of employee stock options | (3) | ||||||||||||||||||
Repurchased | (2) | [2] | |||||||||||||||||
Reissued | 22 | ||||||||||||||||||
Issued | 0 | 1 | 5,750 | ||||||||||||||||
Issuance of common stock warrants | 0 | ||||||||||||||||||
Repurchase of common stock warrants | (1,100) | ||||||||||||||||||
Delivery of common stock underlying restricted stock units and proceeds from the exercise of employee stock options | 5,708 | ||||||||||||||||||
Cancellation of restricted stock units in satisfaction of withholding tax requirements | (863) | ||||||||||||||||||
Stock purchase contract fee related to automatic preferred enhanced capital securities | 0 | ||||||||||||||||||
Preferred and common stock issuance costs | 0 | ||||||||||||||||||
Excess net tax benefit/(provision) related to share-based compensation | (793) | ||||||||||||||||||
Cash settlement of share-based compensation | (2) | ||||||||||||||||||
Adjustment from adoption of amended accounting principles related to employers' accounting for defined benefit pension and other postretirement plans, net of tax | 0 | ||||||||||||||||||
Currency translation adjustment, net of tax | (70) | (70) | |||||||||||||||||
Pension and postretirement liability adjustments, net of tax | (17) | (17) | |||||||||||||||||
Net gains/(losses) on cash flow hedges, net of tax | 0 | 0 | |||||||||||||||||
Net unrealized gains/(losses) on available-for-sale securities, net of tax | 97 | 97 | |||||||||||||||||
Reclassification to retained earnings from adoption of amended accounting principles related to the fair value option, net of tax | 0 | ||||||||||||||||||
Dividends declared on preferred stock | (1,076) | ||||||||||||||||||
Net earnings/(loss) | 13,385 | 13,385 | |||||||||||||||||
Dividends and dividend equivalents declared on common stock and restricted stock units | (588) | ||||||||||||||||||
Balance at Dec. 31, 2009 | $6,957 | $8 | $6,245 | $39,770 | $50,252 | ($362) | ($32,156) | $70,714 | |||||||||||
[1]In connection with becoming a bank holding company, the firm was required to change its fiscal year-end from November to December. The beginning of the year ended December 2009 is December 27, 2008. | |||||||||||||||||||
[2]Relates primarily to repurchases of common stock by a broker-dealer subsidiary to facilitate customer transactions in the ordinary course of business and shares withheld to satisfy withholding tax requirements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||||
In Millions | 1 Months Ended
Dec. 26, 2008 | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Nov. 28, 2008 | 12 Months Ended
Nov. 30, 2007 |
Cash flows from operating activities | ||||
Net earnings/(loss) | ($780) | $13,385 | $2,322 | $11,599 |
Non-cash items included in net earnings/(loss) | ||||
Depreciation and amortization | 143 | 1,943 | 1,625 | 1,167 |
Deferred income taxes | 0 | (431) | (1,763) | 129 |
Share-based compensation | 180 | 2,009 | 1,611 | 4,465 |
Changes in operating assets and liabilities | ||||
Cash and securities segregated for regulatory and other purposes | (5,835) | 76,531 | 12,995 | (39,079) |
Net receivables from brokers, dealers and clearing organizations | 3,693 | 6,265 | (6,587) | (3,811) |
Net payables to customers and counterparties | (7,635) | (47,414) | (50) | 53,857 |
Securities borrowed, net of securities loaned | (18,030) | 7,033 | 85,054 | (51,655) |
Securities sold under agreements to repurchase, net of securities purchased under agreements to resell and federal funds sold | 190,027 | (146,807) | (130,999) | 6,845 |
Trading assets, at fair value | (192,883) | 186,295 | 97,723 | (118,864) |
Trading liabilities, at fair value | 10,059 | (57,010) | (39,051) | 57,938 |
Other, net | 7,156 | 7,076 | (20,986) | 7,962 |
Net cash provided by/(used for) operating activities | (13,905) | 48,875 | 1,894 | (69,447) |
Cash flows from investing activities | ||||
Purchase of property, leasehold improvements and equipment | (61) | (1,556) | (2,027) | (2,130) |
Proceeds from sales of property, leasehold improvements and equipment | 4 | 82 | 121 | 93 |
Business acquisitions, net of cash acquired | (59) | (221) | (2,613) | (1,900) |
Proceeds from sales of investments | 141 | 303 | 624 | 4,294 |
Purchase of available-for-sale securities | (95) | (2,722) | (3,851) | (872) |
Proceeds from sales of available-for-sale securities | 26 | 2,553 | 3,409 | 911 |
Net cash provided by/(used for) investing activities | (44) | (1,561) | (4,337) | 396 |
Cash flows from financing activities | ||||
Unsecured short-term borrowings, net | 2,816 | (9,790) | (19,295) | 12,262 |
Other secured financings (short-term), net | (1,068) | (10,451) | (8,727) | 2,780 |
Proceeds from issuance of other secured financings (long-term) | 437 | 4,767 | 12,509 | 21,703 |
Repayment of other secured financings (long-term), including the current portion | (349) | (6,667) | (20,653) | (7,355) |
Proceeds from issuance of unsecured long-term borrowings | 9,310 | 25,363 | 37,758 | 57,516 |
Repayment of unsecured long-term borrowings, including the current portion | (3,686) | (29,018) | (25,579) | (14,823) |
Preferred stock repurchased | 0 | (9,574) | 0 | 0 |
Repurchase of common stock warrants | 0 | (1,100) | 0 | 0 |
Derivative contracts with a financing element, net | 66 | 2,168 | 781 | 4,814 |
Deposits, net | 4,487 | 7,288 | 12,273 | 4,673 |
Common stock repurchased | (1) | (2) | (2,034) | (8,956) |
Dividends and dividend equivalents paid on common stock, preferred stock and restricted stock units | 0 | (2,205) | (850) | (831) |
Proceeds from issuance of common stock, including stock option exercises | 2 | 6,260 | 6,105 | 791 |
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 0 | 13,366 | 0 |
Proceeds from issuance of common stock warrants | 0 | 0 | 1,633 | 0 |
Excess tax benefit related to share-based compensation | 0 | 135 | 614 | 817 |
Cash settlement of share-based compensation | 0 | (2) | 0 | (1) |
Net cash provided by/(used for) financing activities | 12,014 | (22,828) | 7,901 | 73,390 |
Net increase/(decrease) in cash and cash equivalents | (1,935) | 24,486 | 5,458 | 4,339 |
Cash and cash equivalents, beginning of year | 15,740 | 10,282 | 5,943 | |
Cash and cash equivalents, end of year | 13,805 | 38,291 | 15,740 | 10,282 |
SUPPLEMENTAL DISCLOSURES: | ||||
Cash payments for interest, net of capitalized interest | 459 | 7,320 | 32,370 | 40,740 |
Cash payments for income taxes, net of refunds | 171 | 4,780 | 3,470 | 5,780 |
Non-cash activities: | ||||
Debt assumed in connection with business acquisitions | $0 | $16 | $790 | $409 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (USD $) | ||||
In Millions | 1 Months Ended
Dec. 26, 2008 | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Nov. 28, 2008 | 12 Months Ended
Nov. 30, 2007 |
Consolidated Statements of Comprehensive Income | ||||
Net earnings/(loss) | ($780) | $13,385 | $2,322 | $11,599 |
Currency translation adjustment, net of tax | (32) | (70) | (98) | 39 |
Pension and postretirement liability adjustments, net of tax | (175) | (17) | 69 | 38 |
Net gains/(losses) on cash flow hedges, net of tax | 0 | 0 | (2) | |
Net unrealized gains/(losses) on available-for-sale securities, net of tax | 37 | 97 | (55) | (12) |
Comprehensive income/(loss) | ($950) | $13,395 | $2,238 | $11,662 |
Description of Business
Description of Business | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Description of Business [Abstract] | |
Description of Business | Note1. Description of Business The Goldman Sachs Group, Inc. (GroupInc.), 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 London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. The firms activities are divided into three segments: Investment Banking.The firm provides a broad range of investment banking services to a diverse group of corporations, financial institutions, investment funds, governments and individuals. Trading and Principal Investments.The firm facilitates client transactions with a diverse group of corporations, financial institutions, investment funds, governments and individuals through market making in, trading of and investing in fixed income and equity products, currencies, commodities and derivatives on these products. The firm also takes proprietary positions on certain of these products. In addition, the firm engages in market-making activities on equities and options exchanges, and the firm clears client transactions on major stock, options and futures exchanges worldwide. In connection with the firms merchant banking and other investing activities, the firm makes principal investments directly and through funds that the firm raises and manages. Asset Management and Securities Services.The firm provides investment and wealth advisory 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 group of institutions and individuals worldwide and provides prime brokerage services, financing services and securities lending services to institutional clients, including hedge funds, mutual funds, pension funds and foundations, and to high-net-worth individuals worldwide. |
Significant Accounting Policies
Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note2. Significant Accounting Policies Basis of Presentation These consolidated financial statements include the accounts of GroupInc. and all other entities in which the firm has a controlling financial interest. All material intercompany transactions and balances have been eliminated. The firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity, a variable interest entity (VIE) or a qualifying special-purpose entity (QSPE) under generally accepted accounting principles (GAAP). Voting Interest Entities.Voting interest entities are entities in which (i)the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii)the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entitys activities. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. Accordingly, the firm consolidates voting interest entities in which it has a majority voting interest. Variable Interest Entities.VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has a variable interest, or a combination of variable interests, that will absorb a majority of the VIEs expected losses, receive a majority of the VIEs expected residual returns, or both. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. The firm determines whether it is the primary beneficiary of a VIE by first performing a qualitative analysis of the VIEs expected losses and expected residual returns. This analysis includes a review of, among other factors, the VIEs capital structure, contractual terms, which interests create or absorb variability, related party relationships and the design of the VIE. Where qualitative analysis is not conclusive, the firm performs a quantitative analysis. For purposes of allocating a VIEs expected losses and expected residual returns to its variable interest holders, the firm utilizes the top down method. Under this method, the firm calculates its share of the VIEs expected losses and expected residual returns using the specific cash flows that would be allocated to it, based on contractual arrangements and/or the firms position in the capital structure of the VIE, under various probability-weighted scenarios. The firm reassesses its initial evaluation of an entity as a VIE and its initial determination of whether the firm is the primary beneficiary of a VIE upon the occurrence of certain reconsideration events. See Recent Accounting Developments below for information regarding amendments to accounting for VIEs. QSPEs.QSPEs are passive entities that are commonly used in mortgage and other securitization transactions. To be considered a QSPE, an entity must satisfy certain criteria. These criteria include the types of assets a QSPE may hold, limits on as |
Financial Instruments
Financial Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Financial Instruments [Abstract] | |
Financial Instruments | Note3. Financial Instruments Fair Value of Financial Instruments The following table sets forth the firms trading assets, at fair value, including those pledged as collateral, and trading liabilities, at fair value. At any point in time, the firm may use cash instruments as well as derivatives to manage a long or short risk position. As of December 2009 November 2008 Assets Liabilities Assets Liabilities (in millions) Commercial paper, certificates of deposit, time deposits and other money market instruments $ 9,111 (1) $ $ 8,662 (1) $ Government and U.S.federal agency obligations 117,194 44,825 69,653 37,000 Mortgage and other asset-backed loans and securities 14,277 103 22,393 340 Bank loans and bridge loans 19,345 1,541 (4) 21,839 3,108 (4) Corporate debt securities and other debt obligations 32,041 6,265 27,879 5,711 Equities and convertible debentures 71,474 20,253 57,049 12,116 Physical commodities 3,707 23 513 2 Derivative contracts 75,253 (2) 56,009 (5) 130,337 (2) 117,695 (5) Total $ 342,402 (3) $ 129,019 $ 338,325 (3) $ 175,972 (1) Includes $4.31billion and $4.40billion as of December2009 and November2008, respectively, of money market instruments held by William Street Funding Corporation (Funding Corp.) to support the William Street credit extension program. See Note8 for further information regarding the William Street credit extension program. (2) Net of cash received pursuant to credit support agreements of $124.60billion and $137.16billion as of December2009 and November2008, respectively. (3) Includes $3.86billion and $1.68billion as of December2009 and November2008, respectively, of securities held within the firms insurance subsidiaries which are accounted for as available-for-sale. (4) Consists of the fair value of unfunded commitments to extend credit. The fair value of partially funded commitments is included in trading assets, at fair value. (5) Net of cash paid pursuant to credit support agreements of $14.74billion and $34.01billion as of December2009 and November2008, respectively. Fair Value Hierarchy The firms financial assets at fair value classified within level3 of the fair value hierarchy are summarized below: As of December November 2009 2008 ($ in millions) Total level3 assets $ 46,475 $ 66,190 Level3 assets for which the firm bears economic exposure(1) 43,348 59,574 Total assets 848,942 884,547 Total financia |
Securitization Activities and V
Securitization Activities and Variable Interest Entities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Securitization Activities and Variable Interest Entities [Abstract] | |
Securitization Activities and Variable Interest Entities | Note4. Securitization Activities and Variable Interest Entities Securitization Activities The firm securitizes residential and commercial mortgages, corporate bonds and other types of financial assets. The firm acts as underwriter of the beneficial interests that are sold to investors. The firm derecognizes financial assets transferred in securitizations, provided it has relinquished control over such assets. Transferred assets are accounted for at fair value prior to securitization. Net revenues related to these underwriting activities are recognized in connection with the sales of the underlying beneficial interests to investors. The firm may have continuing involvement with transferred assets, including: retaining interests in securitized financial assets, primarily in the form of senior or subordinated securities; retaining servicing rights; and purchasing senior or subordinated securities in connection with secondary market-making activities. Retained interests and other interests related to the firms continuing involvement are accounted for at fair value and are included in Trading assets, at fair value in the consolidated statements of financial condition. See Note2 for additional information regarding fair value measurement. During the year ended December2009, the firm securitized $48.58billion of financial assets in which the firm had continuing involvement, including $47.89billion of residential mortgages, primarily in connection with government agency securitizations, and $691million of other financial assets. During the year ended November2008, the firm securitized $14.46billion of financial assets, including $6.67billion of residential mortgages, $773million of commercial mortgages, and $7.01billion of other financial assets, primarily in connection with CLOs. During the year ended November2007, the firm securitized $81.40billion of financial assets, including $24.95billion of residential mortgages, $19.50billion of commercial mortgages, and $36.95billion of other financial assets, primarily in connection with CDOs and CLOs. During the one month ended December2008, the firm securitized $604million of financial assets, including $557million of residential mortgages and $47million of other financial assets. Cash flows received on retained interests were $507million, $505million, $705million and $26million for the years ended December2009, November2008 and November2007 and one month ended December2008, respectively. The following table sets forth certain information related to the firms continuing involvement in securitization entities to which the firm sold assets, as well as the total outstanding principal amount of transferred assets in which the firm has continuing involvement, as of December2009. The outstanding principal amount set forth in the table below is presented for the purpose of providing information about the size of the securitization entities in which the firm has continuing involvement, and is not representative of the firms risk of loss. For retained or purchased interests, the firms risk of loss is limited to the fair value of these interests. |
Deposits
Deposits | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Deposits [Abstract] | |
Deposits | Note5. Deposits The following table sets forth deposits as of December2009 and November2008: As of December November 2009 2008 (in millions) U.S.offices(1) $ 32,797 $ 23,018 Non-U.S.offices(2) 6,621 4,625 Total $ 39,418 $ 27,643 (1) Substantially all U.S.deposits were interest-bearing and were held at GS Bank USA. (2) Substantially all non-U.S.deposits were interest-bearing and were held at Goldman Sachs Bank (Europe) PLC (GSBank Europe). Included in the above table are time deposits of $9.30billion and $8.49billion as of December2009 and November2008, respectively. The following table sets forth the maturities of time deposits as of December2009: As of December 2009 U.S. Non-U.S. Total (in millions) 2010 $ 1,777 $ 737 $ 2,514 2011 1,603 1,603 2012 871 871 2013 1,720 1,720 2014 531 531 2015-thereafter 2,058 2,058 Total $ 8,560 (1) $ 737 (2) $ 9,297 (1) Includes $242million greater than $100,000, of which $111million matures within three months, $58million matures within three to six months, $32million matures within six to twelve months, and $41million matures after twelve months. (2) Substantially all were greater than $100,000. |
Short Term Borrowings
Short Term Borrowings | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Short-Term Borrowings [Abstract] | |
Short-Term Borrowings | Note6. Short-Term Borrowings As of December2009 and November2008, short-term borrowings were $50.45billion and $73.89billion, respectively, comprised of $12.93billion and $21.23billion, respectively, included in Other secured financings in the consolidated statements of financial condition and $37.52billion and $52.66billion, respectively, of unsecured short-term borrowings. See Note3 for information on 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. Short-term borrowings that are not recorded at fair value are recorded based on the amount of cash received plus accrued interest, and such amounts approximate fair value due to the short-term nature of the obligations. Unsecured short-term borrowings are set forth below: As of December November 2009 2008 (in millions) Current portion of unsecured long-term borrowings(1)(2) $ 17,928 $ 26,281 Hybrid financial instruments 10,741 12,086 Promissory notes(3) 2,119 6,944 Commercial paper(4) 1,660 1,125 Other short-term borrowings 5,068 6,222 Total(5) $ 37,516 $ 52,658 (1) Includes $1.73billion as of December2009, guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program (TLGP). (2) Includes $17.05billion and $25.12billion as of December2009 and November2008, respectively, issued by GroupInc. (3) Includes $0 and $3.42billion as of December2009 and November2008, respectively, guaranteed by the FDIC under the TLGP. (4) Includes $0 and $751million as of December2009 and November2008, respectively, guaranteed by the FDIC under the TLGP. (5) The weighted average interest rates for these borrowings, after giving effect to hedging activities, were 1.31% and 3.37% as of December2009 and November2008, respectively, and excluded financial instruments accounted for at fair value under the fair value option. |
Long Term Borrowings
Long Term Borrowings | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Long-Term Borrowings [Abstract] | |
Long-Term Borrowings | Note7. Long-Term Borrowings As of December2009 and November2008, long-term borrowings were $196.29billion and $185.68billion, respectively, comprised of $11.20billion and $17.46billion, respectively, included in Other secured financings in the consolidated statements of financial condition and $185.09billion and $168.22billion, respectively, of unsecured long-term borrowings. See Note3 for information regarding other secured financings. The firms unsecured long-term borrowings extend through 2043 and consist principally of senior borrowings. Unsecured long-term borrowings are set forth below: As of December November 2009 2008 (in millions) Fixed rate obligations(1) GroupInc. $ 114,695 $ 101,454 Subsidiaries 2,718 2,371 Floating rate obligations(2) GroupInc. 60,390 57,018 Subsidiaries 7,282 7,377 Total(3) $ 185,085 $ 168,220 (1) As of December2009 and November2008, $79.12billion and $70.08billion, respectively, of the firms fixed rate debt obligations were denominated in U.S.dollars and interest rates ranged from 1.63% to 10.04% and from 3.87% to 10.04%, respectively. As of December2009 and November2008, $38.29billion and $33.75billion, respectively, of the firms fixed rate debt obligations were denominated in non-U.S.dollars and interest rates ranged from 0.80% to 7.45% and from 0.67% to 8.88%, respectively. (2) As of December2009 and November2008, $32.26billion and $32.41billion, respectively, of the firms floating rate debt obligations were denominated in U.S.dollars. As of December2009 and November2008, $35.41billion and $31.99billion, respectively, of the firms floating rate debt obligations were denominated in non-U.S.dollars. Floating interest rates generally are based on LIBOR or the federal funds target rate. Equity-linked and indexed instruments are included in floating rate obligations. (3) Includes $19.03billion as of December2009, guaranteed by the FDIC under the TLGP. Unsecured long-term borrowings by maturity date are set forth below: As of December 2009 GroupInc. Subsidiaries Total (in millions) 2011 $ 22,302 $ 1,234 $ 23,536 2012 25,749 1,665 27,414 2013 23,305 33 23,338 2014 18,303 33 18,336 2015-thereafter 85,426 7,035 92,461 Total(1)(2) $ 175,085 $ 10,000 $ 185,085 (1) 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 are included as unsecured short-term borrowings in the consolidated |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments, Contingencies and Guarantees [Abstract] | |
Commitments, Contingencies and Guarantees | Note8. Commitments, Contingencies and Guarantees Commitments The following table summarizes the firms commitments as of December2009 and November2008: Commitment Amount by Period of Expiration as of December 2009 Total Commitments as of 2011- 2013- 2015- December November 2010 2012 2014 Thereafter 2009 2008 (in millions) Commitments to extend credit(1) Commercial lending: Investment-grade $ 4,665 $ 5,175 $ 1,000 $ 575 $ 11,415 $ 8,007 Non-investment-grade(2) 1,425 4,379 2,105 244 8,153 9,318 William Street credit extension program 4,850 18,112 2,256 25,218 22,610 Warehouse financing 12 12 1,101 Total commitments to extend credit 10,952 27,666 5,361 819 44,798 41,036 Forward starting resale and securities borrowing agreements 34,844 34,844 61,455 Forward starting repurchase and securities lending agreements 10,545 10,545 6,948 Underwriting commitments 1,811 1,811 241 Letters of credit(3) 1,621 33 146 4 1,804 7,251 Investment commitments(4) 2,686 9,153 128 1,273 13,240 14,266 Construction-related commitments(5) 142 142 483 Other 109 58 38 33 238 260 Total commitments $ 62,710 $ 36,910 $ 5,673 $ 2,129 $ 107,422 $ 131,940 (1) Commitments to extend credit are presented net of amounts syndicated to third parties. (2) Included within non-investment-grade commitments as of December2009 and November2008 were $1.20billion and $2.07billion, respectively, related to leveraged lending capital market transactions; $40million and $164million, respectively, related to commercial real estate transactions; and $6.91billion and $7.09billion, respectively, arising from other unfunded credit facilities. Including funded loans, the total notional amount of the firms leveraged lending capital market transactions was $4.45billion and $7.97billion as of December2009 and November2008, respectively. (3) Consists of commitments under letters of credit issued by various bank |
Shareholders Equity
Shareholders Equity | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note9. Shareholders Equity Common and Preferred Equity During 2009, common shares outstanding increased by 72.6 million shares, which included 46.7million common shares issued through a public offering at $123.00 per share for total proceeds of $5.75billion during the second quarter of 2009. In June2009, GroupInc. repurchased from the U.S.Department of the Treasury (U.S.Treasury) the 10.0million shares of the Companys Fixed Rate Cumulative Perpetual Preferred Stock, SeriesH (SeriesH Preferred Stock), that were issued to the U.S.Treasury pursuant to the U.S.Treasurys TARP Capital Purchase Program. The repurchase resulted in a one-time preferred dividend of $426million, which is included in the consolidated statement of earnings for the year ended December2009. This one-time preferred dividend represented the difference between the carrying value and the redemption value of the SeriesH Preferred Stock. In connection with the issuance of the SeriesH Preferred Stock in October2008, the firm issued a 10-year warrant to the U.S.Treasury to purchase up to 12.2million shares of common stock at an exercise price of $122.90 per share. The firm repurchased this warrant in full in July2009 for $1.1billion. This amount was recorded as a reduction to additional paid-in capital. The firms cumulative payments to the U.S.Treasury related to the U.S.Treasurys TARP Capital Purchase Program totaled $11.42billion, including the return of the U.S.Treasurys $10.0billion investment (inclusive of the $426million described above), $318million in preferred dividends and $1.1billion related to the warrant repurchase. Dividends declared per common share were $1.05 in 2009, $1.40 in 2008 and $1.40 in 2007. On January19,2010, the Board declared a dividend of $0.35 per common share to be paid on March30,2010 to common shareholders of record on March2,2010. On December15,2008, the Board declared a dividend of $0.4666666 per common share to be paid on March26,2009 to common shareholders of record on February24,2009. The dividend of $0.4666666 per common share is reflective of a four-month period (December2008 through March2009), due to the change in the firms fiscal year-end. During 2009 and 2008, the firm repurchased 19,578 and 10.5million shares of its common stock at an average cost per share of $80.83 and $193.18, for a total cost of $2million and $2.04billion, respectively. Shares repurchased during 2009 primarily related to repurchases made by GSCo. to facilitate customer transactions in the ordinary course of business. In addition, to satisfy minimum statutory employee tax withholding requirements related to the delivery of common stock underlying RSUs, the firm cancelled 11.2million and 6.7million of RSUs with a total value of $863million and $1.31billion in 2009 and 2008, respectively. The firms share repurchase program is intended to help maintain the appropriate level of common equity and to substantially offset increases in share count over time resulting from employee share-based compensation. The repurchase program is effected primarily through regular open-market purchases, the amounts and timing of which are determin |
Earnings Per Common Share
Earnings Per Common Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | Note10. Earnings Per Common Share The computations of basic and diluted earnings per common share are set forth below: Year Ended One Month Ended December November November December 2009 2008 2007 2008 (in millions, except per share amounts) Numerator for basic and diluted EPS net earnings/(loss) applicable to common shareholders $ 12,192 $ 2,041 $ 11,407 $ (1,028 ) Denominator for basic EPS weighted average number of common shares 512.3 437.0 433.0 485.5 Effect of dilutive securities(1) Restricted stock units 15.7 10.2 13.6 Stock options and warrants 22.9 9.0 14.6 Dilutive potential common shares 38.6 19.2 28.2 Denominator for diluted EPS weighted average number of common shares and dilutive potential common shares 550.9 456.2 461.2 485.5 Basic EPS(2) $ 23.74 $ 4.67 $ 26.34 $ (2.15 ) Diluted EPS(2) 22.13 4.47 24.73 (2.15 ) (1) The diluted EPS computations do not include the antidilutive effect of RSUs, stock options and warrants as follows: Year Ended One Month Ended December November November December 2009 2008 2007 2008 (in millions) Number of antidilutive RSUs and common shares underlying antidilutive stock options and warrants 24.7 60.5 157.2 (2) In the first quarter of fiscal 2009, the firm adopted amended accounting principles which require that unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents be treated as a separate class of securities in calculating earnings per common share. The impact of applying these amended principles for the year ended December2009 and one month ended December2008 was a reduction in basic earnings per common share of $0.06 and an increase in basic and diluted loss per common share of $0.03, respectively. There was no impact on diluted earnings per common share for the year ended December2009. Prior periods have not been restated due to immateriality. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Identifiable Intangible Assets [Abstract] | |
Goodwill and Identifiable Intangible Assets | Note11. Goodwill and Identifiable Intangible Assets Goodwill The following table sets forth the carrying value of the firms goodwill by operating segment, which is included in Other assets in the consolidated statements of financial condition: As of December November 2009 2008 (in millions) Investment Banking Underwriting $ 125 $ 125 Trading and Principal Investments FICC 265 247 Equities(1) 2,389 2,389 Principal Investments 84 80 Asset Management and Securities Services Asset Management(2) 563 565 Securities Services 117 117 Total $ 3,543 $ 3,523 (1) Primarily related to SLK LLC (SLK). (2) Primarily related to The Ayco Company, L.P. (Ayco). Identifiable Intangible Assets The following table sets forth the gross carrying amount, accumulated amortization and net carrying amount of the firms identifiable intangible assets: As of December November 2009 2008 (in millions) Customer lists(1) Gross carrying amount $ 1,117 $ 1,160 Accumulated amortization (472 ) (436 ) Net carrying amount $ 645 $ 724 NYSE DMM rights Gross carrying amount $ 714 $ 714 Accumulated amortization (294 ) (252 ) Net carrying amount $ 420 $ 462 Insurance-related Gross carrying amount $ 292 $ 292 assets(2) Accumulated amortization (142 ) (137 ) Net carrying amount $ 150 $ 155 Exchange-traded Gross carrying amount $ 138 $ 138 fund (ETF) lead Accumulated amortization (48 ) (43 ) market maker rights Net carrying amount $ 90 $ 95 Other(3) Gross carrying amount $ 170 $ 178 Accumulated amortization (98 ) (85 ) Net carrying amount $ 72 $ 93 Total Gross carrying amount $ 2,431 $ 2,482 Accumulated amortization (1,054 ) (953 ) Net carrying amount $ 1,377 $ 1,529 (1) Primarily includes the firms clearance and execution and NASDAQ customer lists related to SLK and financial counseling customer lists related to Ayco. (2) Primarily inclu |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Assets and Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Note12. Other Assets and Other Liabilities Other Assets Other assets are generally less liquid, non-financial assets. The following table sets forth the firms other assets by type: As of December November 2009 2008 (in millions) Property, leasehold improvements and equipment(1) $ 11,380 $ 10,793 Goodwill and identifiable intangible assets(2) 4,920 5,052 Income tax-related assets 7,937 8,359 Equity-method investments(3) 1,484 1,454 Miscellaneous receivables and other 3,747 4,780 Total $ 29,468 $ 30,438 (1) Net of accumulated depreciation and amortization of $7.28billion and $6.55billion as of December2009 and November2008, respectively. (2) See Note11 for further information regarding the firms goodwill and identifiable intangible assets. (3) Excludes investments of $2.95billion and $3.45billion accounted for at fair value under the fair value option as of December2009 and November2008, respectively, which are included in Trading assets, at fair value in the consolidated statements of financial condition. Other Liabilities The following table sets forth the firms other liabilities and accrued expenses by type: As of December November 2009 2008 (in millions) Compensation and benefits $ 11,170 $ 4,646 Insurance-related liabilities(1) 11,832 9,673 Noncontrolling interests(2) 960 1,127 Income tax-related liabilities 4,022 2,865 Employee interests in consolidated funds 416 517 Accrued expenses and other payables 5,455 4,388 Total $ 33,855 $ 23,216 (1) Insurance-related liabilities are set forth in the table below: As of December November 2009 2008 (in millions) Separate account liabilities $ 4,186 $ 3,628 Liabilities for future benefits and unpaid claims 6,484 4,778 Contract holder account balances 874 899 Reserves for guaranteed minimum death and income benefits 288 368 Total insurance-related liabilities $ 11,832 $ 9,673 Separate account liabilities are supported by separate account assets, representing segregated contract holder funds under variable annuity and life insurance contracts. Separate account assets are included in Cash and securities segregated for regulatory and other purposes in the consolidated statements of financial condition. Liabilities for future benefits and unpaid claims include liabilities arising from reinsurance provided by the firm to other insurers. The firm had a receivable of |
Employee Benefit Plans
Employee Benefit Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note13. Employee Benefit Plans The firm sponsors various pension plans and certain other postretirement benefit plans, primarily healthcare and life insurance. The firm also provides certain benefits to former or inactive employees prior to retirement. Defined Benefit Pension Plans and Postretirement Plans Employees of certain non-U.S.subsidiaries participate in various defined benefit pension plans. These plans generally provide benefits based on years of credited service and a percentage of the employees eligible compensation. The firm maintains a defined benefit pension plan for most U.K. employees. As of April2008, the U.K. defined benefit plan was closed to new participants, but will continue to accrue benefits for existing participants. The firm also maintains a defined benefit pension plan for substantially all U.S.employees hired prior to November1,2003. As of November2004, this plan was closed to new participants and frozen such that existing participants would not accrue any additional benefits. In addition, the firm maintains unfunded postretirement benefit plans that provide medical and life insurance for eligible retirees and their dependents covered under these programs. On November30,2007, the firm adopted amended principles related to employers accounting for defined benefit pension and other postretirement plans which require an entity to recognize in its statement of financial condition the funded status of its defined benefit pension and postretirement plans, measured as the difference between the fair value of the plan assets and the benefit obligation. Upon adoption, these amended accounting principles required an entity to recognize previously unrecognized actuarial gains and losses, prior service costs, and transition obligations and assets within Accumulated other comprehensive income/(loss) in the consolidated statements of changes in shareholders equity, and to derecognize additional minimum pension liabilities. As a result of adopting these amended accounting principles, the firm recorded in 2007 increases of $59million and $253million to Other assets and Other liabilities and accrued expenses, respectively, and a $194million loss, net of taxes, within Accumulated other comprehensive income/(loss). The following table provides a summary of the changes in the plans benefit obligations and the fair value of plan assets for the years ended December2009 and November2008, as well as a statement of the funded status of the plans as of December2009 and November2008: As of or for the Year Ended December 2009 November 2008 U.S. Non-U.S. Post- U.S. Non-U.S. Post- Pension Pension retirement Pension Pension retirement (in millions) Benefit obligation Balance, beginning of year $ 485 $ 513 $ 569 $ 399 $ 748 $ 445 Service cost 52 18 84 26 |
Employee Incentive Plans
Employee Incentive Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee Incentive Plans [Abstract] | |
Employee Incentive Plans | Note14. Employee Incentive Plans Stock Incentive Plan The firm sponsors a stock incentive plan, The Goldman Sachs Amended and Restated Stock Incentive Plan (SIP), which provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, dividend equivalent rights, restricted stock, RSUs, awards with performance conditions and other share-based awards. In the second quarter of 2003, the SIP was approved by the firms shareholders, effective for grants after April1,2003, and was further amended and restated, effective December31,2008. The total number of shares of common stock that may be delivered pursuant to awards granted under the SIP through the end of our 2008 fiscal year could not exceed 250million shares. The total number of shares of common stock that may be delivered pursuant to awards granted under the SIP in our 2009 fiscal year and each fiscal year thereafter cannot exceed 5% of the issued and outstanding shares of common stock, determined as of the last day of the immediately preceding fiscal year, increased by the number of shares available for awards in previous years but not covered by awards granted in such years. As of December2009 and November2008, 140.6million and 162.4million shares, respectively, were available for grant under the SIP. Other Compensation Arrangements The firm has maintained deferred compensation plans for eligible employees. In general, under the plans, participants were able to defer payment of a portion of their cash year-end compensation. During the deferral period, participants were able to notionally invest their deferrals in certain alternatives available under the plans. Generally, under current tax law, participants are not subject to income tax on amounts deferred or on any notional investment earnings until the returns are distributed, and the firm is not entitled to a corresponding tax deduction until the amounts are distributed. Beginning with the 2008year, these deferred compensation plans were frozen with respect to new contributions and the plans were terminated. Participants generally received distributions of their benefits in 2009 except that no payments were accelerated for certain senior executives. The firm has recognized compensation expense for the amounts deferred under these plans. As of December2009 and November2008, $9million and $220million, respectively, related to these plans was included in Other liabilities and accrued expenses in the consolidated statements of financial condition. The firm has a discount stock program through which Participating Managing Directors may be permitted to acquire RSUs at an effective 25% discount (for 2009 and 2008year-end compensation, the program was suspended, and no individual was permitted to acquire discounted RSUs thereunder). In prior years, the 25% discount was effected by an additional grant of RSUs equal to one-third of the number of RSUs purchased by qualifying participants. The purchased RSUs were 100% vested when granted, but the shares underlying them generally were subject to certain transfer restrictions (which were waived in December2008 except for |
Transactions with Affiliated Fu
Transactions with Affiliated Funds | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Transactions with Affiliated Funds [Abstract] | |
Transactions with Affiliated Funds | Note15. Transactions with Affiliated Funds The firm has formed numerous nonconsolidated investment funds with third-party investors. The firm generally acts as the investment manager for these funds and, as such, is entitled to receive management fees and, in certain cases, advisory fees, incentive fees or overrides from these funds. These fees amounted to $2.52billion, $3.14billion, $3.62billion and $206million for the years ended December2009, November2008 and November2007 and one month ended December2008, respectively. As of December2009 and November2008, the fees receivable from these funds were $1.04billion and $861million, respectively. Additionally, the firm may invest alongside the third-party investors in certain funds. The aggregate carrying value of the firms interests in these funds was $13.84billion and $14.45billion as of December2009 and November2008, respectively. In the ordinary course of business, the firm may also engage in other activities with these funds, including, among others, securities lending, trade execution, trading, custody, and acquisition and bridge financing. See Note8 for the firms commitments related to these funds. |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note16. Income Taxes The components of the net tax expense reflected in the consolidated statements of earnings are set forth below: Year Ended One Month Ended December November November December 2009 2008 2007 2008 (in millions) Current taxes U.S.federal $ 4,039 $ (278 ) $ 2,934 $ 157 State and local 594 91 388 10 Non-U.S. 2,242 1,964 2,554 287 Total current tax expense 6,875 1,777 5,876 454 Deferred taxes U.S.federal (763 ) (880 ) 118 (857 ) State and local (130 ) (92 ) 100 (26 ) Non-U.S. 462 (791 ) (89 ) (49 ) Total deferred tax (benefit)/expense (431 ) (1,763 ) 129 (932 ) Net tax expense $ 6,444 $ 14 $ 6,005 $ (478 ) Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the firms deferred tax assets and liabilities are set forth below: As of December November 2009 2008 (in millions) Deferred tax assets Compensation and benefits $ 3,338 $ 3,732 Unrealized losses 1,754 375 ASC 740 asset 1,004 625 Non-U.S.operations 807 657 Foreign tax credits 277 334 Net operating losses 184 212 Occupancy related 159 137 Other, net 427 194 7,950 6,266 Valuation allowance(1) (74 ) (93 ) Total deferred tax assets(2) $ 7,876 $ 6,173 Total deferred tax liabilities(2)(3) $ 1,611 $ 1,558 (1) Relates primarily to the ability to utilize losses in various tax jurisdictions. (2) Before netting within tax jurisdictions. (3) Relates to depreciation and amortization. The firm permanently reinvests eligible earnings of certain foreign subsidiaries and, accordingly, does not accrue any U.S.income taxes that would arise if such ea |
Regulation And Capital Adequacy
Regulation And Capital Adequacy | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Regulation and Capital Adequacy [Abstract] | |
Regulation and Capital Adequacy | Note17. Regulation and Capital Adequacy The Federal Reserve Board is the primary U.S.regulator of GroupInc., a bank holding company that in August2009 also became a financial holding company under the U.S.Gramm-Leach-Bliley Act of 1999. As a bank holding company, the firm is subject to consolidated regulatory capital requirements administered by the Federal Reserve Board. The firms bank depository institution subsidiaries, including GS Bank USA, are subject to similar capital requirements. Under the Federal Reserve Boards capital adequacy requirements and the regulatory framework for prompt corrective action (PCA) that is applicable to GS Bank USA, the firm and its bank depository institution subsidiaries must meet specific capital requirements that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory reporting practices. The firm and its bank depository institution subsidiaries capital amounts, as well as GS Bank USAs PCA classification, are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Many of the firms subsidiaries, including GSCo. and the firms other broker-dealer subsidiaries, are subject to separate regulation and capital requirements as described below. The following table sets forth information regarding GroupInc.s capital ratios as of December2009 calculated in accordance with the Federal Reserve Boards regulatory capital requirements currently applicable to bank holding companies, which are based on the Capital Accord of the Basel Committee on Banking Supervision (Basel I). These ratios are used by the Federal Reserve Board and other U.S.federal banking agencies in the supervisory review process, including the assessment of the firms capital adequacy. The calculation of these ratios includes certain market risk measures that are under review by the Federal Reserve Board. The calculation of these ratios has not been reviewed with the Federal Reserve Board and, accordingly, these ratios may be revised in subsequent filings. As of December 2009 ($ in millions) Tier1 capital $ 64,642 Tier2 capital 13,828 Total capital 78,470 Risk-weighted assets 431,890 Tier1 capital ratio 15.0 % Total capital ratio 18.2 % Tier1 leverage ratio 7.6 % Risk-Weighted Assets (RWAs) under the Federal Reserve Boards risk-based capital guidelines are calculated based on the amount of market risk and credit risk. RWAs for market risk include certain measures that are under review by the Federal Reserve Board. Credit risk for on-balance sheet assets is based on the balance sheet value. For off-balance sheet exposures, including OTC derivatives and commitments, a credit equivalent amount is calculated based on the notional of each trade. All such assets and amounts are then assigned a risk weight depending on, among other things, whether the counterparty is a sovereign, bank or qualifying securities firm, or other entity (or if collateral is held, dep |
Business Segments
Business Segments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Business Segments [Abstract] | |
Business Segments | Note18. Business Segments In reporting to management, the firms operating results are categorized into the following three business segments: Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services. Basis of Presentation In reporting segments, certain of the firms business lines have been aggregated where they have similar economic characteristics and are similar in each of the following areas: (i)the nature of the services they provide, (ii)their methods of distribution, (iii)the types of clients they serve and (iv)the regulatory environments in which they operate. The cost drivers of the firm taken as a whole compensation, headcount and levels of business activity are broadly similar in each of the firms business segments. Compensation and benefits expenses within the firms segments reflect, among other factors, the overall performance of the firm as well as the performance of individual business units. Consequently, pre-tax margins in one segment of the firms business may be significantly affected by the performance of the firms other business segments. The firm allocates revenues and expenses among the three business segments. Due to the integrated nature of these segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate third-party rates. Total operating expenses include corporate items that have not been allocated to individual business segments. The allocation process is based on the manner in which management views the business of the firm. The segment information presented in the table below is prepared according to the following methodologies: Revenues and expenses directly associated with each segment are included in determining pre-tax earnings. Net revenues in the firms segments include allocations of interest income and interest expense to specific securities, commodities and other positions in relation to the cash generated by, or funding requirements of, such underlying positions. Net interest is included within segment net revenues as it is consistent with the way in which management assesses segment performance. Overhead expenses not directly allocable to specific segments are allocated ratably based on direct segment expenses. Segment Operating Results Management believes that the following information provides a reasonable representation of each segments contribution to consolidated pre-tax earnings and total assets: As of or for the Year Ended One Month Ended December November November December 2009 2008 2007 2008 (in millions) Investment Net revenues $ 4,797 $ 5,185 $ 7,555 $ 135 Banking Operating expenses 3,527 3,143 4,985 169 Pre-tax earnings/(loss) $ 1,270 $ 2,042 |
Interest Income and Interest Ex
Interest Income and Interest Expense | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Interest Income and Interest Expense [Abstract] | |
Interest Income and Interest Expense | Note19. Interest Income and Interest Expense The following table sets forth the details of the firms interest income and interest expense: Year Ended One Month Ended December November November December 2009 2008 2007 2008 (in millions) Interest income(1) Deposits with banks $ 65 $ 188 $ 119 $ 2 Securities borrowed, securities purchased under agreements to resell and federal funds sold 951 11,746 18,013 301 Trading assets, at fair value 11,106 13,150 13,120 1,172 Other interest(2) 1,785 10,549 14,716 212 Total interest income $ 13,907 $ 35,633 $ 45,968 $ 1,687 Interest expense Deposits $ 415 $ 756 $ 677 $ 51 Securities loaned and securities sold under agreements to repurchase, at fair value 1,317 7,414 12,612 229 Trading liabilities, at fair value 1,854 2,789 3,866 174 Short-term borrowings(3) 623 1,864 3,398 107 Long-term borrowings(4) 2,585 6,975 6,830 297 Other interest(5) (294 ) 11,559 14,598 144 Total interest expense $ 6,500 $ 31,357 $ 41,981 $ 1,002 Net interest income $ 7,407 $ 4,276 $ 3,987 $ 685 (1) Interest income is recorded on an accrual basis based on contractual interest rates. (2) Primarily includes interest income on customer debit balances and other interest-earning assets. (3) Includes interest on unsecured short-term borrowings and short-term other secured financings. (4) Includes interest on unsecured long-term borrowings and long-term other secured financings. (5) Primarily includes interest expense on customer credit balances and other interest-bearing liabilities. |
Parent Company
Parent Company | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Parent Company [Abstract] | |
Parent Company | Note20. Parent Company GroupInc. Condensed Statements of Earnings One Month Year Ended Ended December November November December (in millions) 2009 2008 2007 2008 Revenues Dividends from bank subsidiary $ $ 2,922 $ 18 $ 5 Dividends from nonbank subsidiaries 8,793 3,716 4,273 130 Undistributed earnings/(loss) of subsidiaries 5,884 (3,971 ) 6,708 (1,115 ) Other revenues (1,018 ) (2,886 ) 2,062 (1,004 ) Interest income 4,565 7,167 9,049 462 Total revenues 18,224 6,948 22,110 (1,522 ) Interest expense 3,112 8,229 8,914 448 Revenues, net of interest expense 15,112 (1,281 ) 13,196 (1,970 ) Operating expenses Compensation and benefits 637 122 780 (94 ) Other expenses 1,034 471 281 32 Total operating expenses 1,671 593 1,061 (62 ) Pre-tax earnings/(loss) 13,441 (1,874 ) 12,135 (1,908 ) Provision/(benefit) for taxes 56 (4,196 ) 536 (1,128 ) Net earnings/(loss) 13,385 2,322 11,599 (780 ) Preferred stock dividends 1,193 281 192 248 Net earnings/(loss) applicable to common shareholders $ 12,192 $ 2,041 $ 11,407 $ (1,028 ) GroupInc. Condensed Statements of Financial Condition As of December November (in millions) 2009 2008 Assets Cash and cash equivalents $ 1,140 $ 1,035 Loans to and receivables from subsidiaries Bank subsidiary 5,564 19,247 Nonbank subsidiaries 177,952 157,086 Investments in subsidiaries and associates Bank subsidiary 17,318 13,322 Nonbank subsidiaries and associates 48,421 38,375 Trading assets, at fair value 23,977 40,171 Other assets 11,254 10,414 Total assets $ 285,626 $ 279,650 Liabilities and shareholders equity Unsecured short-term borrowings(1) With third parties $ 24,604 $ 37,941 With subsidiaries 4,208 7,462 Payables to subsidiaries 509 754 Trading l |