v3.20.4
Parent Company
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Parent Company
Note 30.
Parent Company
Group Inc. — Condensed Statements of Earnings
 
    Year Ended December  
       
$ in millions
  
 
2020
 
     2019       2018  
Revenues
                        
Dividends from subsidiaries and other affiliates:
 
                
Bank
  
 
$
 
      40
 
     $     63       $     102  
Nonbank
  
 
11,860
 
     4,199       16,368  
Other revenues
  
 
774
 
     335       (1,376 ) 
Total
non-interest
revenues
  
 
12,674
 
     4,597       15,094  
Interest income
  
 
4,020
 
     7,575       6,617  
Interest expense
  
 
5,861
 
     8,545       8,114  
Net interest loss
  
 
(1,841
) 
     (970 )      (1,497 ) 
Total net revenues
  
 
10,833
 
     3,627       13,597  
 
Operating expenses
                        
Compensation and benefits
  
 
367
 
     331       299  
Other expenses
  
 
3,339
 
     1,365       1,192  
Total operating expenses
  
 
3,706
 
     1,696       1,491  
Pre-tax
earnings
  
 
7,127
 
     1,931       12,106  
Benefit for taxes
  
 
(696
) 
     (538 )      (1,173 ) 
Undistributed earnings/(loss) of subsidiaries
and other affiliates
  
 
1,636
 
     5,997       (2,820 ) 
Net earnings
  
 
9,459
 
     8,466       10,459  
Preferred stock dividends
  
 
544
 
     569       599  
Net earnings applicable to common
shareholders
  
 
$  8,915
 
     $7,897       $  9,860  
Supplemental Disclosures:
In the condensed statements of earnings above, revenues and expenses included the following with subsidiaries and other affiliates:
 
•  
Dividends from bank subsidiaries included cash dividends of $38 million for 2020, $60 million for 2019 and $76 million for 2018.
 
•  
Dividends from nonbank subsidiaries and other affiliates included cash dividends of $11.32 billion for 2020, $4.18 billion for 2019 and $10.78 billion for 2018.
 
•  
Other revenues included $2.62 billion for 2020, $1.29 billion for 2019 and $(1.69) billion for 2018.
 
•  
Interest income included $3.68 billion for 2020, $7.26 billion for 2019 and $6.33 billion for 2018.
 
•  
Interest expense included $1.73 billion for 2020, $3.15 billion for 2019 and $2.39 billion for 2018.
 
•  
Other expenses included $100 million for 2020, $138 million for 2019 and $159 million for 2018.
Group Inc.’s other comprehensive income/(loss) was $50 million for 2020, $(2.18) billion for 2019 and $2.57 billion for 2018.
Group Inc. — Condensed Balance Sheets
 
    As of December  
     
$ in millions
  
 
2020
 
     2019  
Assets
                
Cash and cash equivalents:
                
With third-party banks
  
 
$         26
 
     $         33  
With subsidiary bank
  
 
–
 
     7  
Loans to and receivables from subsidiaries:
                
Bank
  
 
357
 
     2,398  
Nonbank (includes
$7,242
and $6,460 at fair value)
  
 
239,483
 
     239,241  
Investments in subsidiaries and other affiliates:
                
Bank
  
 
31,116
 
     30,376  
Nonbank
  
 
72,689
 
     65,301  
Trading assets (at fair value)
  
 
951
 
     691  
Investments (includes
$16,642
and $16,930 at fair value)
  
 
20,204
 
     20,499  
Other assets
  
 
4,811
 
     4,262  
Total assets
  
 
$369,637
 
     $362,808  
 
Liabilities and shareholders’ equity
                
Secured borrowings with subsidiaries
  
 
$  35,228
 
     $  42,083  
Payables to subsidiaries
  
 
503
 
     640  
Trading liabilities (at fair value)
  
 
320
 
     417  
Unsecured short-term borrowings:
                
With third parties (includes
$1,723
 and $4,751
at fair value)
  
 
20,563
 
     25,635  
With subsidiaries
  
 
7,385
 
     917  
Unsecured long-term borrowings:
                
With third parties (includes
$11,145
 and $15,611
at fair value)
  
 
171,934
 
     168,602  
With subsidiaries
  
 
32,419
 
     28,576  
Other liabilities
  
 
5,353
 
     5,673  
Total liabilities
  
 
273,705
 
     272,543  
 
Commitments, contingencies and guarantees
            
 
Shareholders’ equity
                
Preferred stock
  
 
11,203
 
     11,203  
Common stock
  
 
9
 
     9  
Share-based awards
  
 
3,468
 
     3,195  
Additional
paid-in
capital
  
 
55,679
 
     54,883  
Retained earnings
  
 
112,947
 
     106,465  
Accumulated other comprehensive loss
  
 
(1,434
) 
     (1,484 ) 
Stock held in treasury, at cost
  
 
(85,940
) 
     (84,006 ) 
Total shareholders’ equity
  
 
95,932
 
     90,265  
Total liabilities and shareholders’ equity
  
 
$369,637
 
     $362,808  
Supplemental Disclosures:
Goldman Sachs Funding LLC (Funding IHC), a wholly-owned, direct subsidiary of Group Inc., has provided Group Inc. with a committed line of credit that allows Group Inc. to draw sufficient funds to meet its cash needs in the ordinary course of business.
Trading assets included derivative contracts with subsidiaries of $843 million as of December 2020 and $584 million as of December 2019.
Trading liabilities included derivative contracts with subsidiaries of $320 million as of December 2020 and $365 million as of December 2019.
As of December 2020, unsecured long-term borrowings with subsidiaries by maturity date are $30.97 billion in 2022, $241 million in 2023, $193 million in 2024, $308 million in 2025 and $704 million in 2026-thereafter.
Group Inc. — Condensed Statements of Cash Flows
 
    Year Ended December  
       
$ in millions
  
 
2020
 
     2019       2018  
Cash flows from operating activities
                        
Net earnings
  
 
$
  
  9,459
 
     $   8,466       $ 10,459  
Adjustments to reconcile net earnings to net
cash provided by operating activities:
                        
Undistributed (earnings)/loss of
subsidiaries and other affiliates
  
 
(1,636
) 
     (5,997 )      2,820  
Depreciation and amortization
  
 
6
 
     26       51  
Deferred income taxes
  
 
(160
) 
     (210 )      (2,817 ) 
Share-based compensation
  
 
127
 
     118       105  
Gain related to extinguishment of
unsecured borrowings
  
 
(1
) 
     (20 )      (160 ) 
Changes in operating assets and liabilities:
                        
Collateralized transactions (excluding
secured borrowings, net)
  
 
332
 
     77       147  
Trading assets
  
 
3,484
 
     5,145       (1,431 ) 
Trading liabilities
  
 
(97
) 
     136       27  
Other, net
  
 
(1,492
) 
     (1,208 )      1,492  
Net cash provided by operating activities
  
 
10,022
 
     6,533       10,693  
Cash flows from investing activities
                        
Purchase of property, leasehold
improvements and equipment
  
 
(26
) 
     (34 )      (63 ) 
Repayments/(issuances) of short-term loans
to subsidiaries, net
  
 
7,021
 
     2,079       10,829  
Issuance of term loans to subsidiaries
  
 
(32,472
) 
     (7,374 )      (30,336 ) 
Repayments of term loans by subsidiaries
  
 
29,568
 
     1,894       25,956  
Purchase of investments
  
 
(3,767
) 
     (16,776 )      (3,141 ) 
Proceeds from sales and paydowns of
investments
  
 
4,135
 
     9,768       –  
Capital distributions from/(contributions to)
subsidiaries, net
  
 
(5,617
) 
     (415 )      1,807  
Net cash provided by/(used for) investing
activities
  
 
(1,158
) 
     (10,858 )      5,052  
Cash flows from financing activities
                        
Secured borrowings with subsidiary
(short-term), net
  
 
(6,360
) 
     26,398       (12,853 ) 
Unsecured short-term borrowings, net:
                        
With third parties
  
 
(1,372
) 
     (22 )      (1,541 ) 
With subsidiaries
  
 
12,603
 
     4,649       11,855  
Proceeds from issuance of unsecured long-term
borrowings
  
 
24,789
 
     8,804       26,157  
Repayment of unsecured long-term borrowings,
including the current portion
  
 
(33,432
) 
     (27,172 )      (32,429 ) 
Purchase of Trust Preferred securities
  
 
(11
) 
     (206 )      (35 ) 
Preferred stock redemption
  
 
(350
) 
     (1,100 )      (650 ) 
Common stock repurchased
  
 
(1,928
) 
     (5,335 )      (3,294 ) 
Settlement of share-based awards in
satisfaction of withholding tax requirements
  
 
(830
) 
     (745 )      (1,118 ) 
Dividends and dividend equivalents paid on
common stock, preferred stock and
share-based awards
  
 
(2,336
) 
     (2,104 )      (1,810 ) 
Proceeds from issuance of preferred stock,
net of issuance costs
  
 
349
 
     1,098       –  
Proceeds from issuance of common stock,
including exercise of share-based awards
  
 
–
 
     –       38  
Other financing, net
  
 
–
 
     (3 )      –  
Net cash provided by/(used for) financing
activities
  
 
(8,878
) 
     4,262       (15,680 ) 
Net increase/(decrease) in cash and cash
equivalents
  
 
(14
) 
     (63 )      65  
Cash and cash equivalents, beginning balance
  
 
40
 
     103       38  
Cash and cash equivalents, ending balance
  
 
$
  
       26
 
     $
  
       40		       $      103  
Supplemental Disclosures:
Cash payments for interest, net of capitalized interest, were $5.92 billion for 2020, $9.53 billion for 2019 and $9.83 billion for 2018, and included $1.90 billion for 2020, $3.01 billion for 2019 and $3.05 billion for 2018 of payments to subsidiaries.
Cash payments/(refunds) for income taxes, net, were $1.37 billion for 2020, $272 million for 2019 and $(98) million for 2018.
Non-cash
activities during the year ended December 2020:
 
•  
Group Inc. exchanged $11.2 million of Trust Preferred securities and common beneficial interests for $12.5 million of certain of the Group Inc.’s junior subordinated debt.
Non-cash
activities during the year ended December 2019:
 
•  
Group Inc. acquired $8.50 billion of deposits with GS Bank USA from Funding IHC in exchange for borrowings.
 
•  
Group Inc. exchanged $211 million of Trust Preferred securities and common beneficial interests for $231 million of certain of the Group Inc.’s junior subordinated debt.
Non-cash
activities during the year ended December 2018:
 
•  
Group Inc. restructured funding for GSG UK and GSI, both wholly-owned subsidiaries of Group Inc., which resulted in a net increase in loans to subsidiaries of $5.71 billion and a decrease in equity interest of $5.71 billion.
 
•  
Group Inc. exchanged $150 million of liabilities and $46 million of related deferred tax assets for $104 million of equity interest in GS&Co., a wholly-owned subsidiary of Group Inc.
 
•  
Group Inc. exchanged $36 million of Trust Preferred securities and common beneficial interests for $36 million of certain of the Group Inc.’s junior subordinated debt.