•

The weighted average interest rates for these borrowings include the effect of hedging activities and exclude unsecured short-term borrowings accounted for at fair value under the fair value option. See Note 7 for further information about hedging activities.

Unsecured Long-Term Borrowings

The table below presents information about unsecured long-term borrowings.



$ in millions	U.S. Dollar	Non-U.S. Dollar	Total
As of December 2020
Fixed-rate obligations:
Group Inc.	$ 98,858	$35,614	$134,472
Subsidiaries	1,700	3,145	4,845
Floating-rate obligations:
Group Inc.	18,579	18,871	37,450
Subsidiaries	23,440	13,274	36,714
Total	$142,577	$70,904	$213,481
As of December 2019
Fixed-rate obligations:
Group Inc.	$ 91,256	$33,631	$124,887
Subsidiaries	1,590	2,554	4,144
Floating-rate obligations:
Group Inc.	25,318	18,383	43,701
Subsidiaries	22,532	11,812	34,344
Total	$140,696	$66,380	$207,076

In the table above:

•

Unsecured long-term borrowings consists principally of senior borrowings, which have maturities extending through 2065.

•

Floating-rate obligations includes equity-linked, credit-linked and indexed instruments. Floating interest rates are generally based on LIBOR or Euro Interbank Offered Rate.

•

U.S. dollar-denominated debt had interest rates ranging from 0.63% to 9.30% (with a weighted average rate of 4.07%) as of December 2020 and 2.00% to 10.04% (with a weighted average rate of 3.82%) as of December 2019. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.

•

Non-U.S.

dollar-denominated debt had interest rates ranging from 0.13% to 13.00% (with a weighted average rate of 2.20%) as of December 2020 and 0.13% to 13.00% (with a weighted average rate of 2.33%) as of December 2019. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.

The table below presents unsecured long-term borrowings by maturity.



	As of December 2020

$ in millions		Group Inc.	Subsidiaries	Total
2022		$ 22,637	$ 6,332	$ 28,969
2023		26,961	6,332	33,293
2024		15,551	4,780	20,331
2025		21,405	5,771	27,176
2026 - thereafter		85,368	18,344	103,712
Total		$171,922	$41,559	$213,481

In the table above:

•

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 excluded as they are included in 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.

•

Unsecured long-term borrowings that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.

•

Unsecured long-term borrowings included $12.04 billion of adjustments to the carrying value of certain unsecured long-term borrowings resulting from the application of hedge accounting by year of maturity as follows: $(11) million in 2022, $224 million in 2023, $680 million in 2024, $901 million in 2025, and $10.25 billion in 2026 and thereafter.

The firm designates certain derivatives as fair value hedges to convert a portion of fixed-rate unsecured long-term borrowings not accounted for at fair value into floating-rate obligations. See Note 7 for further information about hedging activities.

The table below presents unsecured long-term borrowings, after giving effect to such hedging activities.



$ in millions	Group Inc.	Subsidiaries	Total
As of December 2020
Fixed-rate obligations:
At fair value	$ 1,407	$ 114	$ 1,521
At amortized cost	27,482	3,345	30,827
Floating-rate obligations:
At fair value	9,721	29,669	39,390
At amortized cost	133,312	8,431	141,743
Total	$171,922	$41,559	$213,481
As of December 2019
Fixed-rate obligations:
At fair value	$ 678	$ 47	$ 725
At amortized cost	44,631	2,946	47,577
Floating-rate obligations:
At fair value	14,920	28,016	42,936
At amortized cost	108,359	7,479	115,838
Total	$168,588	$38,488	$207,076

In the table above, the aggregate amounts of unsecured long-term borrowings had weighted average interest rates of 2.01% (3.34% related to fixed-rate obligations and 1.70% related to floating-rate obligations) as of December 2020 and 2.87% (3.77% related to fixed-rate obligations and 2.48% related to floating-rate obligations) as of December 2019. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.

The carrying value of unsecured long-term borrowings for which the firm did not elect the fair value option was $172.57 billion as of December 2020 and $163.42 billion as of December 2019. The estimated fair value of such unsecured long-term borrowings was $183.29 billion as of December 2020 and $168.60 billion as of December 2019. As these borrowings are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these borrowings been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both December 2020 and December 2019.

Subordinated Borrowings

Unsecured long-term borrowings includes subordinated debt and junior subordinated debt. Subordinated debt that matures within one year is included in unsecured short-term borrowings. Junior subordinated debt is junior in right of payment to other subordinated borrowings, which are junior to senior borrowings. Long-term subordinated debt had maturities ranging from 2025 to 2045 as of December 2020 and 2021 to 2045 as of December 2019.

The table below presents information about subordinated borrowings.



$ in millions	Par Amount	Carrying Value	Rate
As of December 2020
Subordinated debt	$14,136	$18,529	1.83%
Junior subordinated debt	968	1,430	1.32%
Total	$15,104	$19,959	1.80%
As of December 2019
Subordinated debt	$14,041	$16,980	3.46%
Junior subordinated debt	976	1,328	2.85%
Total	$15,017	$18,308	3.42%

In the table above:

•

The par amount of subordinated debt issued by Group Inc. was $14.14 billion as of December 2020 and $14.04 billion as of December 2019, and the carrying value of subordinated debt issued by Group Inc. was $18.53 billion as of December 2020 and $16.98 billion as of December 2019.

•

The rate is the weighted average interest rate for these borrowings (excluding borrowings accounted for at fair value under the fair value option), including the effect of fair value hedges used to convert fixed-rate obligations into floating-rate obligations. See Note 7 for further information about hedging activities.

Junior Subordinated Debt

In 2004, Group Inc. issued $2.84 billion of junior subordinated debt to Goldman Sachs Capital I (Trust), a Delaware statutory trust. The Trust issued $2.75 billion of guaranteed preferred beneficial interests (Trust Preferred securities) to third parties and $85 million of common beneficial interests to Group Inc. As of December 2020, the outstanding par amount of junior subordinated debt held by the Trust was $968 million and the outstanding par amount of Trust Preferred securities and common beneficial interests issued by the Trust was $939 million and $29 million, respectively. As of December 2019, the outstanding par amount of junior subordinated debt held by the Trust was $976 million and the outstanding par amount of Trust Preferred securities and common beneficial interests issued by the Trust was $947 million and $29 million, respectively.

The firm purchased Trust Preferred securities with a par amount and a carrying value of $7.9 million and $11.0 million in 2020, $159 million and $206 million in 2019 and $28 million and $35 million in 2018, respectively. These securities were delivered to the Trust, along with common beneficial interests of $0.2 million in 2020, $5 million in 2019 and $1 million in 2018, in a

non-cash

exchange for junior subordinated debt with a par amount and carrying value of $8.1 million and $12.5 million in 2020, $164 million and $231 million in 2019, and $29 million and $36 million in 2018, respectively. Following the exchange, these Trust Preferred securities, common beneficial interests and junior subordinated debt were extinguished. The Trust is a wholly-owned finance subsidiary of the firm for regulatory and legal purposes but is not consolidated for accounting purposes.

The firm pays interest semi-annually on the junior subordinated debt at an annual rate of 6.345% and the debt matures on February 15, 2034. The coupon rate and the payment dates applicable to the beneficial interests are the same as the interest rate and payment dates for the junior subordinated debt. The firm has the right, from time to time, to defer payment of interest on the junior subordinated debt, and therefore cause payment on the Trust’s preferred beneficial interests to be deferred, in each case up to ten consecutive semi-annual periods. During any such deferral period, the firm will not be permitted to, among other things, pay dividends on or make certain repurchases of its common stock. The Trust is not permitted to pay any distributions on the common beneficial interests held by Group Inc. unless all dividends payable on the preferred beneficial interests have been paid in full.

The firm has covenanted in favor of the holders of Group Inc.’s 6.345% junior subordinated debt due February 15, 2034, that, subject to certain exceptions, the firm will not redeem or purchase the capital securities issued by Goldman Sachs Capital II and Goldman Sachs Capital III (APEX Trusts) or shares of Group Inc.’s Perpetual

Non-Cumulative

Preferred Stock, Series E (Series E Preferred Stock), Perpetual

Non-Cumulative

Preferred Stock, Series F (Series F Preferred Stock) or Perpetual

Non-Cumulative

Preferred Stock, Series O, if the redemption or purchase results in less than $253 million aggregate liquidation preference of that series outstanding, prior to specified dates in 2022 for a price that exceeds a maximum amount determined by reference to the net cash proceeds that the firm has received from the sale of qualifying securities.

The APEX Trusts hold Group Inc.’s Series E Preferred Stock and Series F Preferred Stock. These trusts are Delaware statutory trusts sponsored by the firm and wholly-owned finance subsidiaries of the firm for regulatory and legal purposes but are not consolidated for accounting purposes.