Citibank 2008 Annual Report Download - page 125

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY Citigroup Inc. and Subsidiaries
(Continued)
.Year ended December 31
Amounts Shares
In millions of dollars, except shares in thousands 2008 2007 2006 2008 2007 2006
Accumulated other comprehensive income (loss)
Balance, beginning of year $ (4,660) $ (3,700) $ (2,532)
Adjustment to opening balance, net of taxes (5) —149 —
Adjusted balance, beginning of period $ (4,660) $ (3,551) $ (2,532)
Net change in unrealized gains and losses on investment securities, net of taxes (10,118) (621) (141)
Net change in cash flow hedges, net of taxes (2,026) (3,102) (673)
Net change in foreign currency translation adjustment, net of taxes (6,972) 2,024 1,294
Pension liability adjustment, net of taxes (6) (1,419) 590 (1)
Adjustments to initially apply SFAS 158, net of taxes —— (1,647)
Net change in Accumulated other comprehensive income (loss) $ (20,535) $ (1,109) $ (1,168)
Balance, end of year $ (25,195) $ (4,660) $ (3,700)
Total common stockholders’ equity and common shares outstanding $ 70,966 $113,447 $118,632 5,450,068 4,994,581 4,911,994
Total stockholders’ equity $141,630 $113,447 $119,632
Comprehensive income (loss)
Net income (loss) $ (27,684) $ 3,617 $ 21,538
Net change in Accumulated other comprehensive income (loss) (20,535) (1,109) (1,168)
Comprehensive income (loss) $ (48,219) $ 2,508 $ 20,370
(1) Citigroup’s opening Retained earnings balance has been reduced by $151 million to reflect a prior period adjustment to Goodwill. This reduction adjusts Goodwill to reflect a portion of the losses incurred in January
2002, related to the sale of an Argentinean subsidiary of Banamex, Bansud, that was recorded as an adjustment to the purchase price of Banamex. There is no tax benefit and there is no income statement impact from
this adjustment.
(2) The adjustment to the opening balance of Retained earnings represents the total of the after-tax gain (loss) amounts for the adoption of the following accounting pronouncements:
• SFAS 157 for $75 million,
• SFAS 159 for $(99) million,
• FSP 13-2 for $(148) million, and
• FIN 48 for $(14) million.
See Notes 1, 26 and 27 to the Consolidated Financial Statements on pages 122, 192 and 202, respectively.
(3) Common dividends declared were as follows: $0.32 per share in the first, second and third quarters of 2008, $0.16 in the fourth quarter of 2008; $0.54 per share in the first, second, third and fourth quarters of 2007;
$0.49 per share in the first, second, third and fourth quarters of 2006.
(4) All open market repurchases were transacted under an existing authorized share repurchase plan. On April 14, 2005, the Board of Directors authorized up to an additional $15 billion in share repurchases. Additionally,
on April 17, 2006, the Board of Directors authorized up to an additional $10 billion in share repurchases.
(5) The after-tax adjustment to the opening balance of Accumulated other comprehensive income (loss) represents the reclassification of the unrealized gains (losses) related to the Legg Mason securities as well as several
miscellaneous items previously reported in accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities (SFAS 115). The related unrealized gains and losses were reclassified to
Retained earnings upon the adoption of the fair value option in accordance with SFAS 157 and SFAS 159. See Notes 1, 26 and 27 to the Consolidated Financial Statements on pages 122, 192 and 202 for further
discussion.
(6) In 2008, reflects decreased fair value of plan assets and a lower discount rate, which increased the PBO (Projected Benefit Obligation). In 2007, reflects changes in the funded status of the Company’s pension and
postretirement plans, as required by SFAS 158. In 2006, reflects additional minimum liability, as required by SFAS No. 87, Employers’ Accounting for Pensions (SFAS 87), related to unfunded or book reserve plans,
such as the U.S. nonqualified pension plans and certain foreign plans.
See Notes to the Consolidated Financial Statements.
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