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Parent Company
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Parent Company
Note 30.
Parent Company
Group Inc. – Condensed Statements of Earnings
 
       
  
Year Ended December
 
                         
$ in millions
 
 
2019
 
    
2018
     
2017
 
Revenues
 
 
 
    
     
 
Dividends from subsidiaries and other affiliates:
 
 
 
    
     
 
Bank
 
 
$
  
   63
 
    
$     102
     
$     550
 
Nonbank
 
 
4,199
 
    
16,368
     
11,016
 
Other revenues
 
 
335
 
    
(1,376
 )    
(384
 )
Total
non-interest
revenues
  
 
4,597
 
    
15,094
     
11,182
 
Interest income
 
 
7,575
 
    
6,617
     
4,638
 
Interest expense
 
 
8,545
 
    
8,114
     
5,978
 
Net interest loss
 
 
(970
)
   
(1,497
 )    
(1,340
 )
Total net revenues
 
 
3,627
 
    
13,597
     
9,842
 
 
Operating expenses
 
 
 
    
     
 
Compensation and benefits
 
 
331
 
    
299
     
330
 
Other expenses
 
 
1,365
 
    
1,192
     
428
 
Total operating expenses
 
 
1,696
 
    
1,491
     
758
 
Pre-tax
earnings
  
 
1,931
 
    
12,106
     
9,084
 
Provision/(benefit) for taxes
 
 
(538
)
   
(1,173
 )    
3,404
 
Undistributed earnings/(loss) of subsidiaries
and other affiliates
 
 
5,997
 
    
(2,820
 )    
(1,394
 )
Net earnings
 
 
8,466
 
    
10,459
     
4,286
 
Preferred stock dividends
 
 
569
 
    
599
     
601
 
Net earnings applicable to common
shareholders
 
 
$7,897
 
    
$  9,860
     
$  3,685
 
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 $60 million for 2019, $76 million for 2018 and $525 million for 2017.
 
•
 Dividends from nonbank subsidiaries and other affiliates included cash dividends of $4.18
 
billion for 2019, $10.78
 
billion for 2018 and $7.98 billion for 2017.
 
•
 Other revenues included $1.29
 
billion for 2019, $(1.69) billion for 2018 and $661 million for 2017.
 
•
 Interest income included $7.26 billion for 2019, $6.33 billion for 2018 and $4.65 billion for 2017.
 
•
 Interest expense included $3.15 billion for 2019, $2.39 billion for 2018 and $1.05 billion for 2017.
 
•
 Other expenses included $138 million for 2019, $159 million for 2018 and $45 million for 2017.
Group Inc.’s other comprehensive income/(loss) was $(2.18) billion for 2019, $2.57 billion for 2018 and $(664) million for 2017.
In February 2020, GS&Co. made a
cash
dividend distribution of $4.00 billion to Group Inc.
Group Inc. – Condensed Balance Sheets
 
       
  
As of December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Assets
 
 
 
    
 
Cash and cash equivalents:
 
 
 
    
 
With third-party banks
 
 
$
  
       33
 
    
$       103
 
With subsidiary bank
 
 
7
 
    
–
 
Loans to and receivables from subsidiaries:
 
 
 
    
 
Bank
 
 
2,398
 
    
1,019
 
Nonbank (includes
$6,460
and $5,461 at fair value)
  
 
239,241
 
    
225,471
 
Investments in subsidiaries and other affiliates:
 
 
 
    
 
Bank
 
 
30,376
 
    
28,737
 
Nonbank
 
 
65,301
 
    
61,481
 
Trading assets (at fair value)
 
 
691
 
    
717
 
Investments (includes 
$16,930
 and $12,824 at fair value)
  
 
20,499
 
    
12,824
 
Other assets
 
 
4,262
 
    
3,653
 
Total assets
 
 
$362,808
 
    
$334,005
 
 
Liabilities and shareholders’ equity
 
 
 
    
 
Payables to subsidiaries
 
 
$
  
     640
 
    
$       702
 
Trading liabilities (at fair value)
 
 
417
 
    
281
 
Secured borrowings with subsidiary
 
 
42,083
 
    
6,899
 
Unsecured short-term borrowings:
 
 
 
    
 
With third parties (includes
$4,751
 and $2,615
at fair value)
  
 
25,635
 
    
25,060
 
With subsidiaries
 
 
917
 
    
659
 
Unsecured long-term borrowings:
 
 
 
    
 
With third parties (includes
$15,611
 and $16,395
at fair value)
  
 
168,602
 
    
183,121
 
With subsidiaries
 
 
28,576
 
    
23,343
 
Other liabilities
 
 
5,673
 
    
3,755
 
Total liabilities
 
 
272,543
 
    
243,820
 
 
Commitments, contingencies and guarantees
 
 
 
    
 
 
Shareholders’ equity
 
 
 
    
 
Preferred stock
 
 
11,203
 
    
11,203
 
Common stock
 
 
9
 
    
9
 
Share-based awards
 
 
3,195
 
    
2,845
 
Additional
paid-in
capital
  
 
54,883
 
    
54,005
 
Retained earnings
 
 
106,465
 
    
100,100
 
Accumulated other comprehensive income/(loss)
 
 
(1,484
)
   
693
 
Stock held in treasury, at cost
 
 
(84,006
)
   
(78,670
 )
Total shareholders’ equity
 
 
90,265
 
    
90,185
 
Total liabilities and shareholders’ equity
 
 
$362,808
 
    
$334,005
 
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 $584 million for December 2019 and $683 million as of December 2018.
Trading liabilities included derivative contracts with subsidiaries of $365 million as of December 2019 and $280 million as of December 2018.
As of December 2019, unsecured long-term borrowings with subsidiaries by maturity date are $26.87 billion in 2021, $311 million in 2022, $107 million in 2023, $154 million in 2024 and $1.13 billion in 2025-thereafter.
Group Inc. – Condensed Statements of Cash Flows
 
       
  
Year Ended December
 
                         
$ in millions
 
 
2019
 
    
2018
     
2017
 
Cash flows from operating activities
 
 
 
    
     
 
Net earnings
 
 
$
 
   8,466
 
    
$ 10,459
     
$   4,286
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
    
     
 
Undistributed (earnings)/loss of subsidiaries and other affiliates
 
 
(5,997
)
   
2,820
     
1,394
 
Depreciation and amortization
 
 
26
 
    
51
     
56
 
Deferred income taxes
 
 
(210
)
   
(2,817
 )    
4,358
 
Share-based compensation
 
 
118
 
    
105
     
152
 
Gain related to extinguishment of unsecured borrowings
 
 
(20
)
   
(160
 )    
(114
 )
Changes in operating assets and liabilities:
 
 
 
    
     
 
Trading assets
 
 
5,145
 
    
(1,431
 )    
(508
 )
Trading liabilities
 
 
136
 
    
27
     
(521
 )
Other, net
 
 
(1,131
)
   
1,639
     
(1,154
 )
Net cash provided by operating activities
 
 
6,533
 
    
10,693
     
7,949
 
Cash flows from investing activities
 
 
 
    
     
 
Purchase of property, leasehold improvements and equipment
 
 
(34
)
   
(63
 )    
(66
 )
Repayments/(issuances) of short-term loans to subsidiaries, net
 
 
2,079
 
    
10,829
     
(14,415
 )
Issuance of term loans to subsidiaries
 
 
(7,374
)
   
(30,336
 )    
(42,234
 )
Repayments of term loans by subsidiaries
 
 
1,894
 
    
25,956
     
22,039
 
Purchase of investments
 
 
(16,776
)
   
(3,141
 )    
(6,491
 )
Proceeds from sales and paydowns of
investments
 
 
9,768
 
    
–
     
596
  
Capital distributions from/(contributions to) subsidiaries, net
 
 
(415
)
   
1,807
     
388
 
Net cash provided by/(used for) investing
activities
 
 
(10,858
)
   
5,052
     
(40,183
 )
Cash flows from financing activities
 
 
 
    
     
 
Secured borrowings with subsidiary
(short-term),
 net
  
 
26,398
 
    
(12,853
 )    
16,035
  
Unsecured short-term borrowings, net:
 
 
 
    
     
 
With third parties
 
 
(22
)
   
(1,541
 )    
(424
 )
With subsidiaries
 
 
4,649
 
    
11,855
     
7,043
 
Proceeds from issuance of unsecured
 long-term
borrowings
  
 
8,804
 
    
26,157
      
43,917
  
Repayment of unsecured long-term borrowings, including the current portion
 
 
(27,172
)
   
(32,429
 )    
(27,028
 )
Purchase of Trust Preferred securities
 
 
(206
)
   
(35
 )    
(237
 )
Preferred stock redemption
 
 
(1,100
)
   
(650
 )    
(850
 )
Common stock repurchased
 
 
(5,335
)
   
(3,294
 )    
(6,772
 )
Settlement of
 share-based
 awards in
satisfaction of withholding tax requirements
  
 
(745
)
   
(1,118
 )    
(2,223
 )
Dividends and dividend equivalents paid on common stock, preferred stock and
share-based
 awards
  
 
(2,104
)
   
(1,810
 )    
(1,769
 )
Proceeds from issuance of preferred stock, net of issuance costs
 
 
1,098
 
    
–
     
1,495
 
Proceeds from issuance of common stock, including exercise of share-based awards
 
 
–
 
    
38
     
7
 
Cash settlement of share-based awards
 
 
–
 
    
–
     
(3
 )
Other financing, net
 
 
(3
)
   
–
      
–
  
Net cash provided by/(used for) financing
activities
 
 
4,262
 
    
(15,680
 )    
29,191
 
Net increase/(decrease) in cash and cash
equivalents
 
 
(63
)
   
65
     
(3,043
 )
Cash and cash equivalents, beginning balance
 
 
103
 
    
38
     
3,081
 
Cash and cash equivalents, ending balance
 
 
$        40
 
    
$      103
     
$        38
 
Supplemental Disclosures:
Cash payments for interest, net of capitalized interest, were $9.53 billion for 2019, $9.83 billion for 2018 and $6.31 billion for 2017, and included $3.01 billion for 2019, $3.05 billion for 2018 and $160 million for 2017 of payments to subsidiaries.
Cash payments/(refunds) for income taxes, net, were $272 million for 2019, $(98) million for 2018 and $297 million for 2017.
Cash flows related to common stock repurchased includes common stock repurchased in the prior period for which settlement occurred during the current period and excludes common stock repurchased during the current period for which settlement occurred in the following period.
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 Goldman Sachs Group UK
Limited
and Goldman Sachs International, 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.
Non-cash
activities during the year ended December 2017:
 
•
 Group Inc. exchanged $84.00
 
billion of certain loans to and receivables from subsidiaries for an $84.00
 
billion unsecured subordinated note from Funding IHC (included in loans to and receivables from subsidiaries).
 
•
 Group Inc. exchanged $750
 
million of its equity interest in Goldman Sachs (UK) L.L.C. (GS UK), a wholly-owned subsidiary of Group Inc., for a $750 million loan to GS UK.
 
•
 Group Inc. exchanged $243
 
million of Trust Preferred securities and common beneficial interests for $254
 
million of Group Inc.’s junior subordinated debt.