Citibank 2008 Annual Report Download - page 111

Contractual Obligations
The following table includes aggregated information about Citigroup’s
contractual obligations that impact its short- and long-term liquidity and
capital needs. The table includes information about payments due under
specified contractual obligations, aggregated by type of contractual
obligation. It includes the maturity profile of the Company’s consolidated
long-term debt, operating leases and other long-term liabilities. The
Company’s capital lease obligations are included in purchase obligations in
the table.
Citigroup’s contractual obligations include purchase obligations that are
enforceable and legally binding for the Company. For the purposes of the
table below, purchase obligations are included through the termination date
of the respective agreements, even if the contract is renewable. Many of the
purchase agreements for goods or services include clauses that would allow
the Company to cancel the agreement with specified notice; however, that
impact is not included in the table (unless Citigroup has already notified the
counterparty of its intention to terminate the agreement).
Other liabilities reflected on the Company’s Consolidated Balance Sheet
include obligations for goods and services that have already been received,
litigation settlements, uncertain tax positions, as well as other long-term
liabilities that have been incurred and will ultimately be paid in cash.
Excluded from the following table are obligations that are generally short
term in nature, including deposit liabilities and securities sold under
agreements to repurchase. The table also excludes certain insurance and
investment contracts subject to mortality and morbidity risks or without
defined maturities, such that the timing of payments and withdrawals is
uncertain. The liabilities related to these insurance and investment contracts
are included on the Consolidated Balance Sheet as Insurance Policy and
Claims Reserves, Contractholder Funds, and Separate and Variable Accounts.
Citigroup’s funding policy for pension plans is generally to fund to the
minimum amounts required by the applicable laws and regulations. At
December 31, 2008, there were no minimum required contributions, and no
contributions are currently planned for the U.S. pension plans. Accordingly,
no amounts have been included in the table below for future contributions to
the U.S. pension plans. For the non-U.S. plans, discretionary contributions in
2009 are anticipated to be approximately $167 million and this amount has
been included in purchase obligations in the table below. The estimated
pension plan contributions are subject to change, since contribution
decisions are affected by various factors, such as market performance,
regulatory and legal requirements, and management’s ability to change
funding policy. For additional information regarding the Company’s
retirement benefit obligations, see Note 9 to the Consolidated Financial
Statements on page 144.
Contractual obligations by year
In millions of dollars at year end 2009 2010 2011 2012 2013 Thereafter
Long-term debt obligations (1) $ 88,472 $41,431 $42,112 $27,999 $25,955 $133,624
Operating lease obligations 1,470 1,328 1,134 1,010 922 3,415
Purchase obligations 2,214 750 700 444 395 1,316
Other liabilities reflected on the Company’s Consolidated Balance Sheet (2) 38,221 792 35 36 38 3,193
Total $130,377 $44,301 $43,981 $29,489 $27,310 $141,548
(1) For additional information about long-term debt and trust preferred securities, see Note 20 to the Consolidated Financial Statements on page 169.
(2) Relates primarily to accounts payable and accrued expenses included in Other liabilities in the Company’s Consolidated Balance Sheet. Also included are various litigation settlements.
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