Citibank 2009 Annual Report Download

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Citi Annual Report 2009

Table of contents

  • Page 1
    Citi Annual Report 2009

  • Page 2

  • Page 3
    ... future of Citigroup. Citi Holdings, where we have placed non-core businesses and assets for divestiture, had a 2009 loss of $8.2 billion, versus $36 billion in 2008. The 2009 results underscored the importance of Citi's strong global position, as approximately 50% of our revenues came from markets...

  • Page 4
    .... We are improving and creating technology to support our clients in a fast-changing, innovative world. In 2009, we also cut annual expenses by $11 billion (excluding the goodwill impairment recorded in 2008). Throughout the Company, there are stringent new cost controls in place, and the size...

  • Page 5
    ...real estate loans; auto, student and personal loans; and retail partner cards - International, which includes Western Europe consumer banking and other consumer finance franchises around the world • Special Asset Pool, which includes non-core assets, many of which are illiquid in current markets...

  • Page 6
    ... people directly on customers in many different ways. At the broadest level, we reorganized the Company so that our products, services and investments will be readily responsive to local clients' needs. For example, rather than have the CEOs of our businesses run operations across regions globally...

  • Page 7
    .... Our Global Transaction Services (GTS) business, for example, provides unparalleled resources in trade finance, cash management, securities and fund services, and other specialties. Its global payment flows are as high as $9 trillion per day. Within GTS, Citi continues to invest in technology for...

  • Page 8
    ... Investing strategically in innovation and the Citicorp businesses that drive Citi's earnings potential • Developing further our already leading global position, especially in emerging markets • Maintaining and expanding our role as a constructive force in the world, shaping public policy...

  • Page 9
    ...serving the largest number of borrowers under the federal Home Affordable Modification Program. Currently, we are helping over 1.6 million credit card members manage their card debt through a variety of forbearance programs. Citi also is committed to providing small and mid-sized companies access to...

  • Page 10
    2009 IN SUMMARY Toward the end of last year, members of our senior leadership team and I traveled separately to 17 cities in 14 states where Citi has operations. We met with representatives of more than 200 not-for-profit groups with whom Citi is associated, including our partners in foreclosure ...

  • Page 11
    ...reporting company Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ï,£ Yes X No The aggregate market value of Citigroup Inc. common stock held by non-affiliates of Citigroup Inc. on June 30, 2009 was approximately $16.3 billion. Number...

  • Page 12
    ...Directors, Executive Officers and Corporate Governance ...11. Executive Compensation ...12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...13. Certain Relationships and Related Transactions, and Director Independence ...14. Principal Accounting Fees...

  • Page 13
    ...Group Securities and Banking Transaction Services CITI HOLDINGS Brokerage and Asset Management Local Consumer Lending Special Asset Pool CORPORATE/OTHER BALANCE SHEET REVIEW Segment Balance Sheet at December 31, 2009 CAPITAL RESOURCES AND LIQUIDITY Capital Resources Funding and Liquidity OFF-BALANCE...

  • Page 14
    ...of Citicorp and Travelers Group Inc. Citigroup is now a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services. Citi has approximately 200 million customer accounts and...

  • Page 15
    ...investments • Local Consumer Lending - Cash management - Trade services - Custody and fund services - Clearing services - Agency/trust services - Consumer finance lending: residential and commercial real estate; auto, student and personal loans; and consumer branch lending - Retail partner cards...

  • Page 16
    ... 2009, Citigroup repaid $20 billion of trust preferred securities held by the U.S. Treasury under the U.S. government's Troubled Asset Relief Program (TARP) and exited from the loss-sharing agreement, which covered a specified pool of assets, with the U.S. Treasury, FDIC and the Federal Reserve Bank...

  • Page 17
    ... financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management. Citigroup...

  • Page 18
    ... for the loss-sharing agreement were exchanged for trust preferred securities. Prior to the exchange of the preferred stock held by the U.S. government pursuant to the exchange offers, Citigroup paid the U.S. government approximately $2.2 billion in preferred dividends on its investment in Citi...

  • Page 19
    ... to trust preferred securities Preferred stock held by U.S. Treasury and FDIC related to loss-sharing agreement (converted to trust preferred securities) Preferred stock Series H discount accretion Other activity (primarily employee benefit plans) Balance, end of period Issuance of new common equity...

  • Page 20
    ...government's first-time home buyer credit programs. The U.S. government also directly supported the capital markets through various programs, including the Term Asset-Backed Securities Loan Facility (TALF) and the Temporary Liquidity Guarantee Program (TLGP), and through substantial direct purchases...

  • Page 21
    ... invest in technology to support its global network, including its investor services suite of products, prepaid and commercial cards offerings and launch of a new front end online banking technology that provides a diverse set of functionality beyond traditional transaction management and reporting...

  • Page 22
    ... of Operations-Citicorp-North America Regional Consumer Banking," "-Citi Holdings-Local Consumer Lending" and "Managing Global Risk-Credit Risk" for additional information. Citi expects U.S. consumer net credit losses to increase modestly in the first quarter of 2010 from fourth quarter 2009 levels...

  • Page 23
    ...current period's presentation. (2) Discontinued operations for 2005 to 2009 reflect the sale of Nikko Cordial Securities to Sumitomo Mitsui Banking Corporation, the sale of Citigroup's German retail banking operations to Crédit Mutuel, and the sale of CitiCapital's equipment finance unit to General...

  • Page 24
    ...show the income (loss) and revenues for Citigroup on a segment, business and product view: CITIGROUP INCOME (LOSS) In millions of dollars 2009 2008 2007 % Change 2009 vs. 2008 % Change 2008 vs. 2007 Income (loss) from Continuing Operations CITICORP Regional Consumer Banking North America EMEA...

  • Page 25
    CITIGROUP REVENUES In millions of dollars 2009 2008 2007 % Change 2009 vs. 2008 % Change 2008 vs. 2007 CITICORP Regional Consumer Banking...(33)% Brokerage and Asset Management Local Consumer Lending Special Asset Pool Total Citi Holdings Corporate/Other Total net revenues NM Not meaningful 15

  • Page 26
    ... Citicorp is the company's global bank for consumers and businesses and represents Citi's core franchise. Citicorp is focused on providing best-in-class products and services to customers and leveraging Citigroup's unparalleled global network. Citicorp is physically present in nearly 100 countries...

  • Page 27
    ... banks that provide traditional banking services to retail customers. RCB also contains Citigroup's branded cards business and small commercial banking business. RCB is a globally diversified business with nearly 4,000 branches in 39 countries around the world. During 2009, 68% of total RCB revenues...

  • Page 28
    ... (benefits) Income (loss) from continuing operations Net income (loss) attributable to noncontrolling interests Net income (loss) Average assets (in billions of dollars) Average deposits (in billions of dollars) Net credit losses as a percentage of average loans Revenue by business Retail banking...

  • Page 29
    ...well as by legislative and regulatory changes. Both retail banking and cards will continue to focus on tight expense control, productivity improvements, and effective credit management. With high levels of unemployment and bankruptcy filings in 2010, net credit losses, delinquencies and defaults are...

  • Page 30
    ... to market conditions at the start of the year with assets under management increasing by 9% by year end. Net interest revenue was 23% lower than the prior year due to external competitive pressure on rates and higher funding costs, with average loans for retail banking down 18% and average deposits...

  • Page 31
    ...Middle East and growth in revolving balances. Average loans for retail banking were up 26%, cards were up 49% and average deposits were up 22%. Non-interest revenue decreased by 4% due to reduced investment revenue as a result of market conditions. Operating expenses increased 19%, reflecting growth...

  • Page 32
    ... charges was offset by an expense benefit of $257 million related to a legal vehicle restructuring in 2008. Expenses increased slightly in the fourth quarter of 2009 primarily due to selected marketing and investment spending. Provisions for loan losses and for benefits and claims decreased...

  • Page 33
    ... selective marketing and investment spending during the year, management of LATAM RCB currently expects that overall operating expenses will continue to reflect re-engineering efforts. In addition, Mexico's Ministry of Finance has publicly stated that the U.S. government ownership stake in Citigroup...

  • Page 34
    ... taxes (benefits) Income from continuing operations Net (loss) attributable to noncontrolling interests Net income Average assets (in billions of dollars) Return on assets Average deposits (in billions of dollars) Net credit losses as a percentage of average loans Revenue by business Retail banking...

  • Page 35
    2008 vs. 2007 2010 Outlook Revenues, net of interest expense increased 4%, driven by higher cards purchase sales and higher loan and deposit volumes, partially offset by lower gains on Visa shares than the prior year and a 47% decline in investment sales. Net interest revenue was 13% higher than ...

  • Page 36
    ... Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional and high-net-worth clients with a full range of products and services, including cash management, trading, underwriting, lending and advisory services, around the world. ICG's international...

  • Page 37
    ...and retail investors, and ultra-high-net worth individuals. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking. S&B revenue is...

  • Page 38
    ... value; heldto-maturity/held-for-investment; and equity. See "Managing Global Risk-Credit Risk-Exposure to Commercial Real Estate" section for a further discussion. Revenues, net of interest expense decreased 2% or $0.4 billion reflecting the overall difficult market conditions. Excluding the 2008...

  • Page 39
    ... and agency/trust services to multinational corporations and governments globally. Revenue is generated from net interest revenue on deposits in TTS and SFS, as well as trade loans and from fees for transaction processing and fees on assets under custody in SFS. In millions of dollars 2009 $ 5,651...

  • Page 40
    ...to fund long-term strategic businesses. Citi Holdings consists of the following businesses: Brokerage and Asset Management; Local Consumer Lending; and Special Asset Pool. With Citi's exit from the loss-sharing agreement with the U.S. government in December 2009, the Company conducted a broad review...

  • Page 41
    ... 2009 onwards and the absence of fourth-quarter revenue of Nikko Asset Management, partially offset by an improvement in marks in Retail Alternative Investments. Revenues in the prior year include a $347 million pretax gain on sale of CitiStreet and charges related to the settlement of auction rate...

  • Page 42
    ... in retail partners cards and the mark-to-market on the mortgage servicing rights asset and related hedge in real estate lending. Operating expenses increased 31%, driven by the impact of goodwill write-offs of $3.0 billion in the fourth quarter of 2008 and restructuring costs. Excluding one-time...

  • Page 43
    ...driven by Real Estate Lending and higher loan loss reserve balances in 2008. Managed Presentations The following is a reconciliation of Managed-basis net credit losses in LCL. For a discussion of Managed-basis presentations, see North America Regional Consumer Banking. 2009 Managed credit losses as...

  • Page 44
    ...legislation effective in 2010 will impose a lower interest rate cap and lower lending cap on consumer lending in Japan, which may reduce credit availability and increase potential claims and losses relating to gray zone interest. Citi determined in 2008 to exit its Japanese Consumer Finance business...

  • Page 45
    ... write-downs on commercial real estate, and a negative $1.6 billion CVA on the monoline insurers and fair value option liabilities. Revenue was also affected by negative marks on private equity positions and write-downs on highly leveraged finance commitments. Operating expenses decreased 9% in 2009...

  • Page 46
    ... exposures set forth under "Managing Global Risk-U.S. Subprime-Related Direct Exposure in Citi Holdings-Special Asset Pool." (5) Includes $1.9 billion of corporate and $0.7 billion of commercial real estate. (6) Includes $4.6 billion of small business banking and finance loans. Note: Totals may not...

  • Page 47
    ...(1)(4) Highly leveraged loans and financing commitments (5) Commercial real estate positions (1)(6)(7) Structured investment vehicles' (SIVs) assets Auction rate securities proprietary positions (8) CVA related to exposure to monoline insurers CVA on Citi debt liabilities under fair value option CVA...

  • Page 48
    ... on debt extinguishment related to the repayment of the $20 billion of TARP trust preferred securities and the pretax loss in connection with the exit from the loss-sharing agreement with the U.S. government. Revenues also declined, due to the absence of the 2008 sale of Citigroup Global Services...

  • Page 49
    ... 7.7% in the prior year. For further information, see "Loans Outstanding" under "Managing Global Risk-Credit Risk" and Note 17 to the Consolidated Financial Statements. Trading account assets include debt and marketable equity securities, derivatives in a receivable position, residual interests in...

  • Page 50
    ...at cost primarily include equity shares issued by the Federal Reserve Bank and the Federal Home Loan Bank that Citigroup is required to hold. Investment securities classified as available-for-sale are primarily carried at fair value with the changes in fair value generally recognized in stockholders...

  • Page 51
    ...advances from the Federal Home Loan Bank), subordinated notes and trust preferred securities. The majority of debt is carried at cost, with approximately $27 billion recorded at fair value. During 2009, total debt decreased by $53 billion, or 11%, with Short-term borrowings decreasing by $58 billion...

  • Page 52
    ... assets Total assets Liabilities and equity Total deposits Federal funds purchased and securities loaned or sold under agreements to repurchase Brokerage payables Trading account liabilities Short-term borrowings Long-term debt Other liabilities Net inter-segment funding (lending) Total Citigroup...

  • Page 53
    ...of future events on Citi's business results, such as corporate and asset dispositions, as well as changes in accounting standards, also affect Citi's capital levels. Generally, capital is used primarily to support assets in Citi's businesses and to absorb market, credit, or operational losses. While...

  • Page 54
    ... on available-for-sale equity securities with readily determinable fair values. (3) The Federal Reserve Board granted interim capital relief for the impact of ASC 715-20, Compensation-Retirement Benefits-Defined Benefits Plans (formerly SFAS 158). (4) The impact of including Citigroup's own credit...

  • Page 55
    ...' equity, December 31, 2009 $ 71.0 (1.6) 1.0 (3.4) 58.8 20.3 6.3 $152.4 (1) Net loss includes a $0.9 billion after-tax gain related to the conversion of trust preferred securities held by public investors into common stock, pursuant to Citi's public and private exchange offers consummated...

  • Page 56
    ... to the preferred stock exchange offers, Citigroup has agreed not to acquire, repurchase, or redeem any Citigroup equity or trust preferred securities, other than pursuant to administering its employee benefit plans or other customary exceptions, or with the consent of the U.S. government. See also...

  • Page 57
    ... 13 countries. The international version of the Basel II framework will allow Citigroup to leverage internal risk models used to measure credit, operational, and market risk exposures to drive regulatory capital calculations. On December 7, 2007, the U.S. banking regulators published the rules for...

  • Page 58
    ... sources of funding include deposits, collateralized financing transactions and a variety of unsecured short- and long-term instruments, including federal funds purchased, commercial paper, long-term debt, trust preferred securities, preferred stock and common stock. As a result of continued...

  • Page 59
    ..., 2008. Citigroup's bank subsidiaries also have significant additional liquidity resources through unencumbered highly liquid securities available for secured funding through private markets or that are, or could be, pledged to the major Central Banks and the U.S. Federal Home Loan Banks. The value...

  • Page 60
    ...of Citigroup's balance sheet than traditional measures such as deposits to loans or core deposits to loans. Cash capital measures the amount of long-term funding (>1 year) available to fund illiquid assets. Long-term funding includes core customer deposits, long-term debt and equity. Illiquid assets...

  • Page 61
    ... deposits, is dependent on its credit ratings. The table below indicates the current ratings for Citigroup. As a result of the Citigroup guarantee, changes in ratings for Citigroup Funding Inc. are the same as those of Citigroup noted above. Senior debt Fitch Ratings Moody's Investors Service...

  • Page 62
    ....8 Credit rating distribution Total assets Municipal securities tender option bond (TOB) trusts Customer TOB trusts (not consolidated) Proprietary TOB trusts (consolidated and not consolidated) QSPE TOB trusts (not consolidated) (In billions of dollars) Weighted average life 12.2 years 16.4 years...

  • Page 63
    ... obligations Purchase obligations Other long-term liabilities reflected on Citi's Consolidated Balance Sheet (2) Total (1) For additional information about long-term debt and trust preferred securities, see Note 20 to the Consolidated Financial Statements. (2) Relates primarily to accounts payable...

  • Page 64
    ... condition and results of operations, as well as the trading price of Citigroup common stock, preferred stock and debt securities. Moreover, market and economic disruptions have affected, and may continue to affect, consumer confidence levels, consumer spending, personal bankruptcy rates, and levels...

  • Page 65
    ...in, cause business disruptions or impact the value of assets that Citigroup holds. Citigroup's participation in government programs to modify first and second lien mortgage loans could adversely affect the amount and timing of its earnings and credit losses relating to those loans. The U.S. Treasury...

  • Page 66
    ...materially adverse effect not only on its business in that market but also on its reputation generally. Future issuances of Citigroup common stock and preferred stock may reduce any earnings available to Citi's common stockholders and the return on the company's equity. During 2009, Citigroup raised...

  • Page 67
    ... with Citi's other regulators. In addition, the U.K. recently imposed a one-time 50% tax on bonuses above a certain amount paid to employees of banks operating in the country. Furthermore, the market price of Citigroup common stock has declined significantly from a closing price of $55.12...

  • Page 68
    ... funding from, and restrict its access to, the capital markets and have a material adverse effect on its results of operations and financial condition. Each of Citigroup's and Citibank, N.A.'s long-term/senior debt is currently rated investment grade by Fitch Ratings, Moody's Investors Service and...

  • Page 69
    ...these assets, which may negatively affect Citigroup's results of operations and financial condition in future periods. Citigroup finances and acquires principal positions in a number of real estate and real-estate-related products for its own account, for investment vehicles managed by affiliates in...

  • Page 70
    ... value of the positions, as well as the loss of revenues associated with selling such securities or loans. Further, Citigroup routinely executes a high volume of transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks and investment funds...

  • Page 71
    ... for the regional business heads and local regulators. In addition, the positions of Product Chief Risk Officers were created for those areas of critical importance to Citigroup, such as real estate, structured products and fundamental credit. The Product Chief Risk Officers are accountable for the...

  • Page 72
    ... its obligations. •฀ Market risk losses arise from fluctuations in the market value of trading and non-trading positions, including the treatment changes in value resulting from fluctuations in rates. •฀ Operational risk losses result from inadequate or failed internal processes, systems or...

  • Page 73
    ... financial loss resulting from the failure of a borrower or counterparty to honor its financial or contractual obligations. Credit risk arises in many of Citigroup's business activities, including lending; sales and trading; derivatives; securities transactions; settlement; and when Citigroup acts...

  • Page 74
    ... of dollars at year end 2009 2008 2007 2006 2005 Consumer loans In U.S. offices Mortgage and real estate (1) Installment, revolving credit, and other Cards Commercial and industrial Lease financing In offices outside the U.S. Mortgage and real estate (1) Installment, revolving credit, and...

  • Page 75
    ... from the sale of CitiCapital's transportation portfolio. (2) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other Liabilities on the Consolidated Balance Sheet. (3) Allowance for loan losses represents management's best estimate of...

  • Page 76
    ... on credit card loans until such loans are charged-off, which typically occurs at 180 days contractual delinquency. As such, the non-accrual loan disclosures in this section do not include credit card loans. As discussed under "Accounting Policies" in Note 1 to the Consolidated Financial Statements...

  • Page 77
    ... the non-accrual loans exclude credit card balances and purchased distressed loans as these continue to accrue interest until write-off. N/A Not available at the Citicorp or Citi Holdings level. Renegotiated Loans In millions of dollars at year end 2009 $13,246 3,017 $16,263 2008 $10,031 1,755...

  • Page 78
    ... dollars at year end Total Corporate loan portfolio maturities In U.S. offices Commercial and industrial loans Financial institutions Mortgage and real estate Lease financing Installment, revolving credit, other In offices outside the U.S. Total corporate loans Fixed/variable pricing of corporate...

  • Page 79
    [THIS PAGE INTENTIONALLY LEFT BLANK] 69

  • Page 80
    ... and fees on credit cards. (2) The ratios of 90 days or more past due and 30-89 days past due are calculated based on end-of-period loans. (3) The 90 days or more past due balances for Citi-branded cards and retail partners cards are generally still accruing interest. Citigroup's policy is generally...

  • Page 81
    ... Lending Total Ratio International Ratio North America retail partners cards Ratio North America (excluding cards) Ratio Total Citigroup (excluding Special Asset Pool) Ratio (1) Total average loans exclude interest and fees on credit cards. (2) The ratios of net credit losses are calculated based...

  • Page 82
    ...term programs increased significantly during 2009, and loan loss reserves for these loans have been enhanced, giving consideration to the higher risk associated with those borrowers and reflecting the estimated future credit losses for those loans. See Note 1 to the Consolidated Financial Statements...

  • Page 83
    ... HAMP. 1 A Long-Term Standby Commitment (LTSC) is a structured transaction in which Citi transfers the credit risk of certain eligible loans to an investor in exchange for a fee. These loans remain on balance sheet unless they reach a certain delinquency level (between 120 and 180 days), in which...

  • Page 84
    ...36% 0.96% $0.4 1Q08 2Q08 3Q08 4Q08 1Q09 $0.9 3.90% 3.51% $1.3 $1.1 2Q09 3Q09 4Q09 Note: Includes loans for Canada and Puerto Rico. Excludes loans that are guaranteed by U.S. government sponsored agencies. Second Mortgages NCL $B NCL % 90+ $B 90+DPD % 7.47% 6.75% 4.83% $1.9 $1.6 3.06% 2.40...

  • Page 85
    ... fees/costs. Refreshed FICO scores based on updated credit scores obtained from Fair Isaac Corporation. Refreshed LTV ratios are derived from data at origination updated using mainly the Case-Shiller Home Price Index or the Federal Housing Finance Agency Price Index. Second mortgages-Loan balances...

  • Page 86
    ..., based on updated credit scores obtained from Fair Isaac Corporation. Refreshed LTV ratios are derived from data at origination updated using mainly the Case-Shiller Home Price Index or the Federal Housing Finance Agency Price Index. Note: NM-Not meaningful. 90+DPD rates are based on balances...

  • Page 87
    ... LTV. Note: First lien mortgage table excludes Canada and Puerto Rico, deferred fees/costs, loans guaranteed by U.S. government sponsored agencies and loans subject to LTSCs. Second Lien Mortgages: December 31, 2009 VINTAGES ($ in billions) In the second lien mortgage portfolio, Florida continues...

  • Page 88
    ... faster and the loan balances reflect more recent vintages. As a result, loss mitigation efforts, such as stricter underwriting standards for new accounts, decreasing higher-risk credit lines, closing high-risk accounts and re-pricing, tend to affect the retail partner cards portfolio faster than...

  • Page 89
    ...% $2.1 4.79% $1.4 $1.0 2.62% 1.65% 1Q08 2Q08 3Q08 2.16% $1.8 $1.4 $2.1 $1.9 2.59% 4Q08 1Q09 2Q09 3Q09 4Q09 Note: Includes Puerto Rico. Retail Partner Cards NCL $B NCL % 90+ $B 90+DPD % 14.16% 13.38% 9.79% $2.2 $2.1 $2.2 7.10% $1.6 $1.2 $2.1 $1.6 $2.0 3.21% 2.35% 1Q08 2Q08 3Q08 4Q08...

  • Page 90
    ... loans in the following businesses: Consumer Finance, Retail Banking, Auto, Student Lending and Cards. Other Revolving consists of consumer loans (Ready Credit and Checking Plus products) in the Consumer Retail Banking business. Commercial-related loans are not included. Note: Based on balances...

  • Page 91
    ... rates within a given period of time, generally up to 60 days after the rate has been set. If the resulting loans from these commitments will be classified as loans held-for-sale, Citigroup accounts for the commitments as derivatives. Accordingly, the initial and subsequent changes in the fair value...

  • Page 92
    ... data for Citigroup's corporate loans and unfunded lending commitments at December 31, 2009. The ratings scale is based on Citi's internal risk ratings, which generally correspond to the ratings as defined by S&P and Moody's. in millions of dollars At December 31, 2009 Recorded investment in loans...

  • Page 93
    ... direct outstandings that include drawn loans, overdrafts, interbank placements, bankers' acceptances, certain investment securities and leases and unfunded commitments that include unused commitments to lend, letters of credit and financial guarantees. At December 31, 2009 Due within 1 year Greater...

  • Page 94
    ...asset sales. The purpose of these transactions is to transfer credit risk to third parties. The results of the mark-to-market and any realized gains or losses on credit derivatives are reflected in the Principal transactions line on the Consolidated Statement of Income. At December 31, 2009 and 2008...

  • Page 95
    ... using available mortgage loan information including historical loan performance. An appropriate discount rate is then applied to the cash flows generated for each ABCP tranche, in order to estimate its fair value under current market conditions. The valuation as of December 31, 2009 assumes...

  • Page 96
    ... for loan losses and in net credit losses. (3) Equity and other investments include approximately $4.3 billion of equity and other investments such as limited partner fund investments that are accounted for under the equity method, which recognizes gains or losses based on the investor's share of...

  • Page 97
    ... the market value of Citi Holdings' direct exposures to and the corresponding notional amounts of transactions with the various Monolines, as well as the aggregate credit valuation adjustment associated with these exposures as of December 31, 2009 and 2008. December 31, 2009 Fair value exposure...

  • Page 98
    ... of debt capital to equity capital of the borrower) than is generally the case for other companies. In recent years through mid-2008, highly leveraged financing had been commonly employed in corporate acquisitions, management buy-outs and similar transactions. In these financings, debt service (that...

  • Page 99
    ... (if applicable), and rate type. Net interest revenue (NIR) is the difference between the yield earned on the non-trading portfolio assets (including customer loans) and the rate paid on the liabilities (including customer deposits or company borrowings). NIR is affected by changes in the level of...

  • Page 100
    ... annualized risk to NIR assuming an unanticipated parallel instantaneous 100 bps change, as well as a more gradual 100 bps (25 bps per quarter) parallel change in rates compared with the market forward interest rates in selected currencies. December 31, 2009 In millions of dollars December 31, 2008...

  • Page 101
    ... levels and limits. Each trading portfolio has its own market risk limit framework encompassing these measures and other controls, including permitted product lists and a new product approval process for complex products. Total revenues of the trading business consist of: •฀ customer revenue...

  • Page 102
    ... experienced during 2009 and 2008: 2009 In millions of dollars 2008 Low $227 23 58 12 High $339 130 235 60 Low $185 18 46 12 High $320 140 167 50 Interest rate Foreign exchange Equity Commodity The following table provides the VAR for Citicorp's Securities and Banking business (ICG Citicorp VAR...

  • Page 103
    ... Long-term debt and accounted for at fair value with changes recorded in Principal transactions. In addition, the majority of the funding provided by Treasury to CitiCapital operations is excluded from this line. A significant portion of Citi's business activities are based upon gathering deposits...

  • Page 104
    ... of dollars 2009 $ 186,841 $ Average volume 2008 2007 77,200 $ 2009 Interest revenue 2008 2007 2009 3,074 $ 3,097 0.79% % Average rate 2008 2007 3.98% 5.84% Assets Deposits with banks (5) Federal funds sold and securities borrowed or purchased under agreements to resell (6) In U.S. offices In...

  • Page 105
    ... of dollars Interest expense 2009 2008 2007 2009 % Average rate 2008 2007 2009 2008 2007 Liabilities Deposits In U.S. offices Savings deposits (5) Other time deposits In offices outside the U.S. (6) Total Federal funds purchased and securities loaned or sold under agreements to repurchase...

  • Page 106
    ... volume rate $ 1,146 $(1,169) $ 2008 vs. 2007 In millions of dollars Net change $ (1,596) Net change (23) Deposits with banks (4) Federal funds sold and securities borrowed or purchased under agreements to resell In U.S. offices In offices outside the U.S. (4) Total Trading account assets In...

  • Page 107
    ...Average rate $ (3,091) (5,177) $ (8,268) Net change $ (2,605) (5,526) $ (8,131) Deposits In U.S. offices In offices outside the U.S. (4) Total Federal funds purchased and securities loaned or sold under agreements to repurchase In U.S. offices In offices outside the U.S. (4) Total Trading account...

  • Page 108
    .... The Information Security Program is reviewed and enhanced periodically to address emerging threats to customers' information. The Corporate Office of Business Continuity, with the support of senior management, continues to coordinate global preparedness and mitigate business continuity risks by...

  • Page 109
    ... (trade and short-, mediumand long-term claims) include cross-border loans, securities, deposits with banks, investments in affiliates, and other monetary assets, as well as net revaluation gains on foreign exchange and derivative products. Cross-border outstandings are reported based on the country...

  • Page 110
    ... to nonperformance risk. This process identifies specific, point-in-time future cash flows that are subject to nonperformance risk, rather than using the current recognized net asset or liability as a basis to measure the CVA. Second, market-based views of default probabilities derived from observed...

  • Page 111
    ... fair value option. See Note 26 to the Consolidated Financial Statements for further information. •฀ The effect of counterparty credit risk embedded in non-derivative instruments. During 2008 and 2009 a range of financial instruments. Losses on non-derivative instruments, such as bonds and loans...

  • Page 112
    ... swaps and options Total return swaps and other Total by instrument The fair values shown are prior to the application of any netting agreements, cash collateral, and market or credit value adjustments. Citigroup actively participates in trading a variety of credit derivatives products as both...

  • Page 113
    ... 2009 $(148) - 2008 $(160) - 2007 $179 - Pension (benefit) expense (1) Company contributions (2) (1) The 2008 expense includes a $23 million curtailment loss for the U.S. plans and $22 million for the non-U.S. plans recognized in the fourth quarter of 2008 relating to Citigroup's restructuring...

  • Page 114
    ... discount rates used in determining pension and postretirement benefit obligations and net benefit expense for Citigroup's plans, as well as the effects of a one-percentage-point change in the expected rates of return and the discount rates, see Note 9 to the Consolidated Financial Statements. 104

  • Page 115
    ... using the related observable inputs in verifying internally calculated values. For additional information on Citigroup's fair value analysis, see "Managing Global Risk" and "Balance Sheet Review." Recognition of Changes in Fair Value Citigroup holds fixed-income and equity securities, derivatives...

  • Page 116
    ... 2008, resulting in a year-to-date pretax gain of $4.558 billion recorded in the Consolidated Statement of Income. The CVA recognized on fair value option debt instruments was $1,220 million and $5,446 million as of December 31, 2009 and 2008, respectively. Citigroup recognized a pretax loss...

  • Page 117
    ...of borrowers with foreign currency obligations to obtain the foreign currency necessary for orderly debt servicing, among other things, are all taken into account during this review. Changes in these estimates could have a direct impact on the credit costs in any quarter and could result in a change...

  • Page 118
    ... fund deferred sales commissions VIEs, for which the fair value option was elected. The following tables present the pro forma impact of adopting these new accounting standards applying these approaches. The pro forma impact of these changes on incremental GAAP assets and resulting risk-weighted...

  • Page 119
    ...apply to assets transferred in securities transactions completed on or prior to March 31, 2010 if the transfers would have satisfied the conditions for GAAP sale treatment in effect for reporting periods prior to November 15, 2009. The FDIC is currently engaged in a rulemaking process regarding this...

  • Page 120
    ... using management projections for the selected reporting units and an appropriate risk-adjusted discount rate, is most reflective of a market participant's view of fair values given current market conditions. For the reporting units where both methods were utilized in 2009, the resulting fair values...

  • Page 121
    ... employs a capital asset pricing model in estimating the discount rate. Citi continues to value the remaining reporting units where it believes the risk of impairment to be low, using primarily the market approach. Citi prepares a formal three-year strategic plan for its businesses on an annual...

  • Page 122
    ... $46.1 DTA balance December 31, 2008 $ 4.6 10.5 0.6 19.9 0.9 $36.5 $ 1.2 0.4 2.7 $ 4.3 0.2 0.9 2.6 $ 3.7 $44.5 U.S. Federal Net operating loss (NOL) Foreign tax credit (FTC) General business credit (GBC) Future tax deductions and credits Other Total U.S. federal State and local New York NOLs Other...

  • Page 123
    ... result in an ownership change under the Code. However, these common stock issuances have materially increased the risk that Citigroup will experience an ownership change in the future. On June 9, 2009, the Board of Directors of Citigroup adopted a tax benefits preservation plan (the "Plan"). This...

  • Page 124
    ... Citi's assumptions and estimates used to prepare its financial statements; •฀ changes in accounting standards and its impact on how Citi records and reports its financial condition and results of operations; •฀ the effectiveness of Citi's risk management processes and strategies; •฀ the...

  • Page 125
    ...that at that date Citigroup's disclosure controls and procedures were effective. Financial Reporting There were no changes in Citigroup's internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter ended December 31, 2009 that materially...

  • Page 126
    ... internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Citigroup's internal control system is designed to provide reasonable assurance to management and the Board of Directors regarding the preparation and fair presentation of published financial statements...

  • Page 127
    ... Company Accounting Oversight Board (United States), the consolidated balance sheets of Citigroup as of December 31, 2009 and 2008, and the related consolidated statements of income, changes in stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 2009...

  • Page 128
    ...(the "Company" or "Citigroup") as of December 31, 2009 and 2008, and the related consolidated statements of income, changes in stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 2009, and the related consolidated balance sheets of Citibank, N.A. and...

  • Page 129
    ... Plans Note 9 - Retirement Benefits Note 10 - Restructuring Note 11 - Income Taxes Note 12 - Earnings per Share Note 13 - Federal Funds/Securities Borrowed, Loaned, and Subject to Repurchase Agreements Note 14 - Brokerage Receivables and Brokerage Payables Note 15 - Trading Account Assets and...

  • Page 130
    ...10-65, Investments-Debt and Equity Securities. The Company disclosed comparable information with the prior year in its 2009 periodic reports. This accounting change was not applicable to 2007 and, accordingly, 2007 information is not disclosed above. (2) The Diluted EPS calculation for 2009 and 2008...

  • Page 131
    ..., at fair value) Total deposits Federal funds purchased and securities loaned or sold under agreements to repurchase (including $104,030 and $138,866 as of December 31, 2009 and December 31, 2008, respectively, at fair value) Brokerage payables Trading account liabilities Short-term borrowings...

  • Page 132
    ... dividends Preferred stock Series H discount accretion Reset of convertible preferred stock conversion price Conversion of preferred stock to common stock Balance, end of year Treasury stock, at cost Balance, beginning of year Issuance of shares pursuant to employee benefit plans Treasury stock...

  • Page 133
    ...the U.S. plan. 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. See Notes to the Consolidated Financial Statements...

  • Page 134
    ... continuing operations Amortization of deferred policy acquisition costs and present value of future profits $ 434 Additions to deferred policy acquisition costs (461) Depreciation and amortization 2,853 Deferred tax benefit (7,709) Provision for credit losses 39,004 Change in trading account assets...

  • Page 135
    ... CONSOLIDATED BALANCE SHEET In millions of dollars, except shares Citibank, N.A. and Subsidiaries December 31 2009 $ 20,246 154,372 31,434 156,380 233,086 477,974 (22,685) $ 2008 22,107 156,774 41,613 197,052 165,914 555,198 (18,273) Assets Cash and due from banks Deposits with banks Federal funds...

  • Page 136
    ... and services; investment banking, commercial banking, cash management, trade finance and e-commerce products and services; and private banking products and services. The Company includes a balance sheet and statement of changes in stockholder's equity for Citibank, N.A. to provide information about...

  • Page 137
    ... for investments carried at fair value, which are described in Note 26 to the Consolidated Financial Statements. Trading Account Assets and Liabilities Physical commodities inventory is carried at the lower of cost or market (LOCOM) with related gains or losses reported in Principal transactions...

  • Page 138
    ... 26 to the Consolidated Financial Statements, the Company uses a discounted cash flow technique to determine the fair value of repo and reverse repo transactions. Loans Cash flows related to U.S. credit card loans classified as held-for-sale at origination or acquisition are reported in the cash...

  • Page 139
    ... the fair value option has been elected, these loans are accounted for at the lower of cost or market value (LOCOM), with any write-downs or subsequent recoveries charged to Other revenue. Allowance for Loan Losses Allowance for loan losses represents management's best estimate of probable losses...

  • Page 140
    ...of borrowers with foreign currency obligations to obtain the foreign currency necessary for orderly debt servicing, among other things, are all taken into account during this review. Changes in these estimates could have a direct impact on the credit costs in any quarter and could result in a change...

  • Page 141
    ... disposed of based on the ratio of the fair value of the business disposed of to the fair value of the reporting unit. Intangible Assets Intangible assets-including core deposit intangibles, present value of future profits, purchased credit card relationships, other customer relationships, and...

  • Page 142
    ... amount of the loans involved in the transfer at the date of sale. Gains are recognized at the time of securitization and are reported in Other revenue. The Company values its securitized retained interests at fair value using quoted market prices, if such positions are actively traded, or financial...

  • Page 143
    ... other employee plans, the amortization of restricted stock awards and costs of other employee benefits. Stock-Based Compensation The Company recognizes compensation expense related to stock and option awards over the requisite service period based on the instruments' grant date fair value, reduced...

  • Page 144
    ...affiliates. These transactions, which are primarily short-term in nature, include cash accounts, collateralized financing transactions, margin accounts, derivative trading, charges for operational support and the borrowing and lending of funds, and are entered into in the ordinary course of business...

  • Page 145
    ... FSP had no effect on the Company's Consolidated Financial Statements. Determining Fair Value in Inactive Markets As of December 31, 2009, the Company adopted Accounting Standards Update (ASU) No. 2009-12, Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent...

  • Page 146
    ...OTTI on debt and equity securities. Citigroup adopted the FSP in the first quarter of 2009. As a result of the FSP, the Company's Consolidated Statement of Income reflects the full impairment (that is, the difference between the security's amortized cost basis and fair value) on debt securities that...

  • Page 147
    ... the fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting agreement, which was the Company's prior accounting practice. Thus, this amendment did not affect the Company's consolidated financial statements. In January 2009, the...

  • Page 148
    ... quarter of 2007 earnings within the Securities and Banking business. The statement also precludes the use of block discounts for instruments traded in an active market, which were previously applied to large holdings of publicly traded equity securities, and requires the recognition of trade-date...

  • Page 149
    ... as Level 3. The disclosures about plan assets required by this FSP are effective for fiscal years ending after December 15, 2009, but have no effect on the Consolidated Balance Sheet or Statement of Income. Derivative contracts on a company's own stock may be accounted for as equity instruments...

  • Page 150
    ... to the Company's results of operations and financial position for any previously reported period. Consequently, in the accompanying financial statements, the cumulative effect through December 31, 2008 is recorded in 2009. Year-end CVA reserve reported as a contra-liability on FVO debt: Previously...

  • Page 151
    ... Special Purpose Entities (QSPEs). SFAS 166 is effective for fiscal years that begin after November 15, 2009. This change will have a significant impact on Citigroup's Consolidated Financial Statements. Beginning January 1, 2010, the Company will lose sales treatment for certain future asset...

  • Page 152
    ...establishes new criteria for a parent company or equity method investor to retain investment company accounting in their consolidated financial statements. Investment companies record all their investments at fair value with changes in value reflected in earnings. The Company is currently evaluating...

  • Page 153
    ... shares of Citigroup common stock). ATD operates as a unit of Citigroup's Global Equities business, adding a network of broker-dealer customers to Citigroup's diverse base of institutional, broker-dealer and retail customers. Results for ATD are included within Citigroup's Securities and Banking...

  • Page 154
    ...offers various financial products and services including online payment and account aggregation services, credit cards, personal loans, savings accounts, mortgages, insurance and investments. Results for Egg are included in Citi Holdings' LCL business from May 1, 2007 forward. Purchase of 20% Equity...

  • Page 155
    ... the sale, Citigroup signed an agreement with TCS for TCS to provide, through CGSL, process outsourcing services to Citigroup and its affiliates in an aggregate amount of $2.5 billion over a period of 9.5 years. During 2008, the Company sold substantially all of the Upromise Cards portfolio to Bank...

  • Page 156
    ... including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008. The sale does not include the corporate and investment banking business or the Germany-based European data center. The German retail banking operations had total assets and total...

  • Page 157
    ... financial information for the Nikko Cordial business, German retail banking operations and CitiCapital business. Additionally, contingency consideration payments of $29 million pretax ($19 million after-tax) were received during 2009 related to the sale of Citigroup's Asset Management business...

  • Page 158
    ...Company's ICG segment provide corporations, governments, institutions and investors in approximately 100 countries with a broad range of banking and financial products and services. The Citi Holdings segment is composed of the Brokerage and Asset Management, Local Consumer Lending and Special Asset...

  • Page 159
    ... loan losses Net interest revenue after provision for loan losses Commissions and fees revenue includes charges to customers for credit and bank cards, including transaction-processing fees and annual fees; advisory and equity and debt underwriting services; lending and deposit-related transactions...

  • Page 160
    ... rate contracts Foreign exchange contracts (2) Equity contracts (3) Commodity and other contracts (4) Credit derivatives (5) Total Citigroup $ 4,075 2,762 (334) 924 (3,495) $ 3,932 The Company has adopted a number of equity compensation plans under which it administers stock options, restricted...

  • Page 161
    ... 2009 Stock Incentive Plan (and predecessor plans) to its officers, employees and non-employee directors. Citigroup's primary stock award program is the Capital Accumulation Program (CAP). Generally, CAP awards of restricted or deferred stock constitute a percentage of annual incentive compensation...

  • Page 162
    ... Programs" below) include options granted in lieu of CAP and FA CAP stock awards in those years. A summary of the status of Citigroup's unvested stock awards at December 31, 2009 and changes during the 12 months ended December 31, 2009 are presented below: Weighted-average grant date fair value...

  • Page 163
    ...than the fair market value at the time of grant (which is defined under the plan to be the NYSE closing price on the trading day immediately preceding the grant date, or on the grant date for grants to certain officers). Generally, options granted from 2003 through 2009 have six-year terms, and vest...

  • Page 164
    Information with respect to stock option activity under Citigroup stock option programs for the years ended December 31, 2009, 2008 and 2007 is as follows: 2009 Weightedaverage exercise price $41.84 4.27 - 36.98 36.21 - $12.75 Intrinsic value per share Weightedaverage exercise price $43.08 24.70 28...

  • Page 165
    ... (2) The 2009 curtailment loss in the non-U.S pension plans includes $18 million gain reflecting the sale of Citigroup's Nikko operations. See Note 3 to the Consolidated Financial Statements for further discussion of the sale of Nikko operations. The estimated net actuarial loss, prior service cost...

  • Page 166
    ...at fair value at beginning of year Actual return on plan assets Company contributions (3) Employee contributions Acquisitions Divestitures Settlements Benefits paid Foreign exchange impact Plan assets at fair value at year end Funded status of the plan at year end Net amount recognized Benefit asset...

  • Page 167
    ... Change in accumulated other comprehensive income (loss) (1) Funded status consists of Net amount recognized on the balance sheet of the U.S. qualified and nonqualified pension and postretirement benefit plans, as well as the non-U.S. pension and postretirement plans. At the end of 2009 and 2008...

  • Page 168
    ... discount rate and future rate of compensation assumptions used in determining pension and postretirement benefit obligations and net benefit expense for the Company's plans are shown in the following table: At year end 2009 2008 Discount rate U.S. plans (1) Pension Postretirement Non-U.S. plans...

  • Page 169
    ...for U.S. plans Effect on accumulated postretirement benefit obligation for U.S. plans Citigroup considers the expected rate of return to be a long-term assessment of return expectations, based on each plan's expected asset allocation, and does not anticipate changing this assumption annually unless...

  • Page 170
    ... estate asset category, not private equity. (2) Equity securities in the U.S. pension plans include no Citigroup common stock at the end of 2009 and 2008. Third-party investment managers and third-party affiliated advisors provide their respective services to Citigroup's U.S. pension plans. Assets...

  • Page 171
    ...debt Hedge funds Asset backed securities Mortgage backed securities Annuity contracts Private equity Other investments (2) Real estate Total investments Cash and cash equivalents Total assets U.S. pension and postretirement benefit plans (1) Fair value measurement at December 31, 2009 Level 1 Level...

  • Page 172
    ... Debt securities Non-U.S. corporate bonds Hedge funds Real estate Total assets Beginning Level 3 market value at Dec. 31, 2008 $- 14 13 $ 27 Realized gains (losses) $- - - $- Unrealized gains (losses) Non-U.S. pension and postretirement benefit plans Purchases, Transfers in Ending Level 3 sales...

  • Page 173
    ... paid by the Company. These estimates are subject to change, since contribution decisions are affected by various factors, such as market performance and regulatory requirements; in addition, management has the ability to change funding policy. Estimated Future Benefit Payments The following table...

  • Page 174
    ... a review of its structural expense base in a Company-wide effort to create a more streamlined organization, reduce expense growth, and provide investment funds for future growth initiatives. As a result of this review, a pretax restructuring charge of $1.4 billion was recorded in Corporate/Other...

  • Page 175
    ...Citicorp Citi Holdings Corporate/Other Total Citigroup (pretax) (1) Amounts shown net of $196 million related to changes in estimates recorded during 2009. (2) Excludes pension curtailment charges of $51 million recorded during the fourth quarter of 2008. In millions of dollars For the year ended...

  • Page 176
    ...) for income taxes on cumulative effect of accounting changes Income tax expense (benefit) reported in stockholders' equity related to: Foreign currency translation Securities available-for-sale Employee stock plans Cash flow hedges Pension liability adjustments Tax on exchange offer booked to...

  • Page 177
    ...assets and leases Interest related items Intangibles Credit valuation adjustment on Company-issued debt Other deferred tax liabilities Gross deferred tax liabilities Net deferred tax asset The following is a roll-forward of the Company's unrecognized tax benefits. In millions of dollars 2009 2008...

  • Page 178
    ...the "Foreign income tax rate differential" line in the reconciliation of the federal statutory rate to the Company's effective income tax rate. Income taxes are not provided for on the Company's savings bank base year bad debt reserves that arose before 1988 because under current U.S. tax rules such...

  • Page 179
    ... term if estimates of future taxable income during the carryforward period are significantly lower than forecasted due to deterioration in market conditions. Based upon the foregoing discussion, as well as tax planning opportunities and other factors discussed below, the U.S. Federal and New York...

  • Page 180
    ... result in an ownership change under the Code. However, these common stock issuances have materially increased the risk that Citigroup will experience an ownership change in the future. On June 9, 2009, the board of directors of Citigroup adopted a tax benefits preservation plan (the "Plan"). This...

  • Page 181
    ... to conform to the current period's presentation. (2) Due to the net loss available to common shareholders in 2009 and 2008, loss available to common stockholders for basic EPS was used to calculate diluted EPS. Adding back the effect of dilutive securities would result in anti-dilution. (3) Due...

  • Page 182
    ...to resell Deposits paid for securities borrowed Total $ 2009 4 105,165 116,853 $ 2008 - 78,701 105,432 $222,022 $184,133 Federal funds purchased and securities loaned or sold under agreements to repurchase, at their respective fair values, consisted of the following: In millions of dollars at...

  • Page 183
    ... at fair value, consisted of the following at December 31: In millions of dollars 2009 2008 Trading account assets Mortgage-backed securities U.S. government sponsored agency guaranteed Prime Alt-A Subprime Non-U.S. residential Commercial Total mortgage-backed securities U.S. Treasury and federal...

  • Page 184
    ...at fair value are recognized in earnings. (3) Non-marketable equity securities carried at cost primarily consist of shares issued by the Federal Reserve Bank, Federal Home Loan Bank, foreign central banks and various clearing houses of which Citigroup is a member. Securities Available-for-Sale The...

  • Page 185
    ... Foreign government Corporate Other debt securities Marketable equity securities available-for-sale Total securities available-for-sale December 31, 2008 Securities available-for-sale Mortgage-backed securities U.S. government-agency guaranteed Prime Alt-A Subprime Non-U.S. residential Commercial...

  • Page 186
    ... corporate securities and other debt securities. During the fourth quarter of 2008, the Company reviewed portfolios of debt securities classified in Trading account assets and available-for-sale securities, and identified positions where there had been a change of intent to hold the debt securities...

  • Page 187
    ...2008 were as follows: Net unrealized loss recognized in AOCI Gross unrecognized gains Gross unrecognized losses In millions of dollars Amortized cost (1) Carrying value (2) Fair value December 31, 2009 Debt securities held-to-maturity Mortgage-backed securities U.S. government-agency guaranteed...

  • Page 188
    ... of these unrealized losses relate to securities that have been in a loss position for 12 months or longer at December 31, 2009 and December 31, 2008, respectively. The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates as of December...

  • Page 189
    ...fourth quarter of 2008. The extent of the Company's analysis regarding credit quality and the stress on assumptions used in the analysis have been refined for securities where the current fair value or other characteristics of the security warrant. The paragraphs below describe the Company's process...

  • Page 190
    ...months ended December 31, 2009: Other-Than-Temporary Impairments (OTTI) on Investments In millions of dollars Year ended December 31, 2009 AFS HTM Total Impairment losses related to securities that the Company does not intend to sell nor will likely be required to sell Total OTTI losses recognized...

  • Page 191
    ... of dollars December 31, 2008 balance AFS debt securities Mortgage-backed securities Prime Alt-A Commercial real estate Total mortgage-backed securities Foreign government Corporate Asset-backed securities Other debt securities Total OTTI credit losses recognized for AFS debt securities HTM debt...

  • Page 192
    ... funds and real estate funds, and includes both funds that are managed by the Company and funds managed by third parties. These investments are generally classified as non-marketable equity securities carried at fair value. The fair value of these investments has been estimated using the net asset...

  • Page 193
    ...-for-investment category at a discount to par. Included in the previous loan table are lending products whose terms may give rise to additional credit issues. Credit cards with below-market introductory interest rates, multiple loans supported by the same collateral (e.g., home equity loans), and...

  • Page 194
    ...The balance reported in the column "Carrying amount of loan receivable" consists of $87 million of purchased loans accounted for under the level-yield method and $242 million under the cost-recovery method. These balances represent the fair value of these loans at their acquisition date. The related...

  • Page 195
    ... to conform to the current period's presentation. (2) 2009 primarily includes reductions to the loan loss reserve of approximately $543 million related to securitizations, approximately $402 million related to the sale or transfers to held-for-sale of U.S. Real Estate Lending Loans, and $562 million...

  • Page 196
    ... ASSETS Goodwill The changes in Goodwill during 2008 and 2009 were as follows: In millions of dollars Balance at December 31, 2007 Sale of German retail bank Sale of CitiCapital Sale of Citigroup Global Services Limited Purchase accounting adjustments-BISYS Purchase of the remaining shares...

  • Page 197
    ... Regional Consumer Banking Securities and Banking Transaction Services Brokerage and Asset Management Local Consumer Lending-Cards While no impairment was noted in step one of the Company's Local Consumer Lending-Cards reporting unit impairment test at November 30, 2009, goodwill present in that...

  • Page 198
    ... Core deposit intangibles Other customer relationships Present value of future profits Indefinite-lived intangible assets Other (1) Intangible assets (excluding MSRs) Mortgage servicing rights (MSRs) Total intangible assets (1) Includes contract-related intangible assets. In 2009, Citigroup added...

  • Page 199
    ... CGMHI's short-term requirements. Citigroup parent company Senior notes (1) Subordinated notes Junior subordinated notes relating to trust preferred securities Other Citigroup subsidiaries Senior notes (2) Subsidiary subordinated notes Secured debt Citigroup Global Markets Holdings Inc. Senior...

  • Page 200
    ... 2009, the Company's overall weighted average interest rate for long-term debt was 3.51% on a contractual basis and 3.91% including the effects of derivative contracts. Aggregate annual maturities of long-term debt obligations (based on final maturity dates) including trust preferred securities are...

  • Page 201
    ... table summarizes the financial structure of each of the Company's subsidiary trusts at December 31, 2009: Junior subordinated debentures owned by trust Trust securities with distributions guaranteed by Citigroup In millions of dollars, except share amounts Issuance date Dec. 1996 July 2001...

  • Page 202
    .... Dividends are payable semi-annually for the first 10 years until April 30, 2018 at $42.70 per depositary share and thereafter quarterly at a floating rate when, as and if declared by the Company's Board of Directors. During the third quarter of 2009, pursuant to the "Exchange Offers", Citigroup...

  • Page 203
    ...considerations of its broker-dealer subsidiaries. In millions of dollars Subsidiary Citigroup Global Markets Inc. Citigroup Global Markets Limited Jurisdiction U.S. Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1) United Kingdom's Financial Services Authority Net capital...

  • Page 204
    ... 31, 2008 Cumulative effect of accounting change (ASC 320-10-35/FSP FAS 115-2 and FAS 124-2) Balance, January 1, 2009 Change in net unrealized gains (losses) on investment securities, net of taxes Less: Reclassification adjustment for net losses included in net income, net of taxes Foreign currency...

  • Page 205
    ... the Company is the investment manager and receives variable fees for services. In various other transactions, the Company may act as a derivative counterparty (for example, interest rate swap, cross-currency swap, or purchaser of credit protection under a credit default swap or total return swap...

  • Page 206
    ...commercial paper conduits Collateralized debt obligations (CDOs) Collateralized loan obligations (CLOs) Asset-based financing Municipal securities tender option bond trusts (TOBs) Municipal investments Client intermediation Investment funds Trust preferred securities Other Total Citi Holdings Credit...

  • Page 207
    ...31, 2009 (continued) In millions of dollars As of December 31, 2008 (1) Total maximum exposure to loss in ...current period's presentation. (2) A significant unconsolidated VIE is an entity where the Company has any variable interest considered to be significant, regardless of the likelihood of loss...

  • Page 208
    ... replace the general partner or liquidate the funds; •฀ certain investment funds for which the Company provides investment management services and personal estate trusts for which the Company provides administrative, trustee and/or investment management services; •฀ VIEs structured by third...

  • Page 209
    ...2008 $0.2 0.6 $0.8 Trading account liabilities Short-term borrowings Long-term debt Other liabilities Total liabilities of consolidated VIEs Trading account assets Investments Loans Other assets Total assets of significant interests in unconsolidated VIEs In billions of dollars December 31, 2009...

  • Page 210
    ... and •฀ changes in fair value for the portion of the residual interest classified as trading assets. The following table summarizes selected cash flow information related to Citicorp's credit card securitizations for the years ended December 31, 2009, 2008 and 2007: In billions of dollars As of...

  • Page 211
    ... used in measuring the fair value of the residual interest at the date of sale or securitization of Citi Holdings' credit card receivables for the years ended December 31, 2009 and 2008, respectively, are as follows: December 31, 2009 Discount rate Constant prepayment rate Anticipated net credit...

  • Page 212
    ... continues to maintain credit card customer account relationships and provides servicing for receivables transferred to the trusts. As a result, the Company considers the securitized credit card receivables to be part of the business it manages. Managed-basis (Managed) presentations are non-GAAP...

  • Page 213
    ..., 2009 and 3.3 years as of December 31, 2008. Broadway Trust liabilities In billions of dollars December 31, 2009 December 31, 2008 Term notes issued to multiseller commercial paper conduits Term notes issued to other third parties Term notes retained by Citigroup affiliates Total Broadway Trust...

  • Page 214
    ... of future credit losses to the purchasers of the securities issued by the trust. Securities and Banking and Special Asset Pool retain servicing for a limited number of their mortgage securitizations. The Company's Consumer business provides a wide range of mortgage loan products to its customers...

  • Page 215
    ... used in measuring the fair value of retained interests at the date of sale or securitization of mortgage receivables for the years ended December 31, 2009 and 2008 are as follows: December 31, 2009 U.S. agencysponsored mortgages Discount rate Constant prepayment rate Anticipated net credit losses...

  • Page 216
    ... retained by the Company. The interests retained by Securities and Banking range from highly rated and/or senior in the capital structure to unrated and/or residual interests. The effect of adverse changes of 10% and 20% in each of the key assumptions used to determine the fair value of retained...

  • Page 217
    ...assumptions Transfer to Trading account assets Other changes (1) Balance, end of year (1) Represents changes due to customer payments and passage of time. The market for MSRs is not sufficiently liquid to provide participants with quoted market prices. Therefore, the Company uses an option-adjusted...

  • Page 218
    ...the assets remain on the Company's balance sheet. The following table presents the carrying amounts and classification of consolidated assets and liabilities transferred in transactions from the Consumer credit card, student loan, mortgage and auto businesses, accounted for as secured borrowings: In...

  • Page 219
    ... and earns a market-based fee for providing such services. Along with third-party dealers, the Company makes a market in the commercial paper and may from time to time fund commercial paper pending sale to a third party. On specific dates with less liquidity in the market, the Company may hold in...

  • Page 220
    ... pay to investors the market value of the pool of assets owned by the CDO at maturity. Both types of CDOs are typically managed by a third-party asset manager. In these transactions, all of the equity and notes issued by the CDO are funded, as the cash is needed to purchase the debt securities. In...

  • Page 221
    ... used for the securitization of CDOs and CLOs during the year ended December 31, 2009, in measuring the fair value of retained interests at the date of sale or securitization are as follows: CDOs Discount rate 36.4% to 47.2% CLOs 4.3% to 6.3% Asset-Based Financing-Citi Holdings The Company provides...

  • Page 222
    ... cash flow information related to asset-based financing for the years ended December 31, 2009, 2008 and 2007: In billions of dollars 2009 $2.7 2008 $1.7 2007 $- Cash flows received on retained interests and other net cash flows The effect of two negative changes in discount rates used to...

  • Page 223
    ... Company recognizes only its residual investment on its balance sheet at fair value and the third-party financing raised by the trusts is off balance sheet. The following table summarizes selected cash flow information related to Citicorp's municipal bond securitizations for the years ended December...

  • Page 224
    ... bases for a portion of the employees' investment commitments. Trust Preferred Securities The Company has raised financing through the issuance of trust preferred securities. In these transactions, the Company forms a statutory business trust and owns all of the voting equity shares of the trust...

  • Page 225
    ...-U.S.-dollar-denominated debt, foreigncurrency-denominated available-for-sale securities, net capital exposures and foreign-exchange transactions. Derivatives may expose Citigroup to market, credit or liquidity risks in excess of the amounts recorded on the Consolidated Balance Sheet. Market risk...

  • Page 226
    ... management purposes, but for which hedge accounting is not applied. These derivatives are recorded in Other assets/liabilities on the Consolidated Balance Sheet. (3) Credit derivatives are arrangements designed to allow one party (protection buyer) to transfer the credit risk of a "reference asset...

  • Page 227
    ...year ended December 31, 2009 Principal transactions gains (losses) (1) $ 4,075 2,762 (334) 924 (3,495) $ 3,932 Interest rate contracts Foreign exchange contracts Equity contracts Commodity and other contracts Credit derivatives Total (1) (1) Also see Note 7 to the Consolidated Financial Statements...

  • Page 228
    ... to as fair value hedges, while contracts hedging the risks affecting the expected future cash flows are called cash flow hedges. Hedges that utilize derivatives or debt instruments to manage the foreign exchange risk associated with equity investments in non-U.S.-dollar functional currency foreign...

  • Page 229
    ... relationships are highly effective at inception and on an ongoing basis, while certain others use regression analysis. Hedging of foreign exchange risk Citigroup hedges the change in fair value attributable to foreign-exchange rate movements in available-for-sale securities that are denominated...

  • Page 230
    ...months ended December 31, 2009. The pretax change in Accumulated other comprehensive income (loss) from cash flow hedges for year ended December 31, 2009 is presented below: In millions of dollars 2009 Effective portion of cash flow hedges included in AOCI Interest rate contracts Foreign exchange...

  • Page 231
    ...for its own account. Through these contracts, the Company either purchases or writes protection on either a single name or a portfolio of reference credits. The Company uses credit derivatives to help mitigate credit risk in its corporate and consumer loan portfolio and other cash positions, to take...

  • Page 232
    ... amount of future payments under credit derivative contracts presented in the table above is based on the notional value of the derivatives. The Company believes that the maximum potential amount of future payments for credit protection sold is not representative of the actual loss exposure based on...

  • Page 233
    ... use of block discounts when measuring the fair value of instruments traded in an active market; such discounts were previously applied to large holdings of publicly traded equity securities. It also requires recognition of trade-date gains related to certain derivative transactions whose fair value...

  • Page 234
    ... account assets and liabilities-trading securities and trading loans When available, the Company uses quoted market prices to determine the fair value of trading securities; such items are classified as Level 1 of the fair value hierarchy. Examples include some government securities and exchange...

  • Page 235
    Trading account assets and liabilities-derivatives Exchange-traded derivatives are generally fair valued using quoted market (i.e., exchange) prices and so are classified as Level 1 of the fair value hierarchy. The majority of derivatives entered into by the Company are executed over the counter and...

  • Page 236
    ...-to-maturity, available-for-sale and trading securities. Prior to the Company's first auction's failing in the first quarter of 2008, Citigroup valued ARS based on observation of auction market prices, because the auctions had a short maturity period (7, 28 and 35 days). This generally resulted in...

  • Page 237
    ... commercial real estate as Available-for-sale investments, which are carried at fair value with changes in fair-value reported in AOCI. Similar to the valuation methodologies used for other trading securities and trading loans, the Company generally determines the fair value of securities and loans...

  • Page 238
    ... Net balance Level 1 Level 2 Level 3 Netting(1) Assets Federal funds sold and securities borrowed or purchased under agreements to resell Trading securities Trading mortgage-backed securities U.S. government-sponsored agency guaranteed Prime Alt-A Subprime Non-U.S. residential Commercial Total...

  • Page 239
    ... loans reported at fair value. In millions of dollars at December 31, 2008 Level 1 Level 2 Level 3 Gross inventory Netting(1) Net balance Assets Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Trading securities and loans Derivatives...

  • Page 240
    ... and federal agencies securities State and municipal Foreign government Corporate Equity securities Other debt securities Total trading securities Derivatives, net (4) Investments Mortgage-backed securities U.S. government-sponsored agency guaranteed Prime Alt-A Subprime Commercial Total investment...

  • Page 241
    ...bearing deposits Securities sold under agreements to repurchase Trading account liabilities Securities sold, not yet purchased Short-term borrowings Long-term debt Other financial liabilities measured on a recurring basis (1) Changes in fair value for available-for-sale investments (debt securities...

  • Page 242
    ... senior debt securities retained by the Company from its sale of a corporate loan portfolio that included highly leveraged loans during the second quarter of 2008, plus $3 billion of ARS securities purchased from GWM clients, in accordance with the Auction Rate Securities settlement agreement; - The...

  • Page 243
    ... transfer of consolidated SIV debt in the first quarter of 2008, as the availability of observable inputs continued to decline due to the current crisis; offset by - $2.2 billion in gains recognized as credit spreads widened during the year; and - $34.3 billion decrease from net settlements/payments...

  • Page 244
    ...the changes in fair value recorded in current earnings. The classes of servicing rights are identified based on the availability of market inputs used in determining their fair values and the methods for managing their risks. The Company has elected fair-value accounting for its mortgage and student...

  • Page 245
    ... years ended December 31, 2009 and 2008: Changes in fair value gains (losses) 2009 Changes in fair value gains (losses) 2008(1) In millions of dollars Fair value at December 31, 2009 Fair value at December 31, 2008 Assets Federal funds sold and securities borrowed or purchased under agreements...

  • Page 246
    ... convertible preferred equity securities (Legg shares) were acquired in connection with the sale of Citigroup's Asset Management business in December 2005. Prior to the election of fair value option accounting, the shares were classified as available-for-sale securities with the unrealized loss of...

  • Page 247
    .... Changes in fair value of funded and unfunded credit products are classified in Principal transactions in the Company's Consolidated Statement of Income. Related interest revenue is measured based on the contractual interest rates and reported as Interest revenue on trading account assets or loans...

  • Page 248
    ... loans or loans more than 90 days past due The changes in fair values of these mortgage loans are reported in Other revenue in the Company's Consolidated Statement of Income. The changes in fair value during the years ended December 31, 2009 and 2008 due to instrument-specific credit risk resulted...

  • Page 249
    ... 2008 Estimated fair value $772.9 In billions of dollars at year end Carrying value $835.9 2009 Estimated fair value $834.5 Carrying value $774.2 Liabilities Deposits Federal funds purchased and securities loaned or sold under agreements to repurchase Trading account liabilities Long-term debt...

  • Page 250
    ...yet purchased, securities borrowings and loans, pledges to clearing organizations, segregation requirements under securities laws and regulations, derivative transactions and bank loans. The Company provides a variety of guarantees and indemnifications to Citigroup customers to enhance their credit...

  • Page 251
    ... letters of credit include guarantees of payment of insurance premiums and reinsurance risks that support industrial revenue bond underwriting and settlement of payment obligations to clearing houses, and also support options and purchases of securities or are in lieu of escrow deposit accounts...

  • Page 252
    ... these benefits at any given time. The Company assesses the probability and amount of its potential liability related to these programs based on the extent and nature of its historical loss experience. At December 31, 2009 and 2008, the actual and estimated losses incurred and the carrying value of...

  • Page 253
    ..., the Company is a member of or shareholder in hundreds of value-transfer networks (VTNs) (payment clearing and settlement systems as well as securities exchanges) around the world. As a condition of membership, many of these VTNs require that members stand ready to backstop the net effect on the...

  • Page 254
    ... 31, 2009 Financial standby letters of credit Performance guarantees Derivative instruments deemed to be guarantees Loans sold with recourse Securities lending indemnifications Credit card merchant processing Custody indemnifications and other Total In billions of dollars as of December 31, 2008...

  • Page 255
    ... home equity lines of credit. A home equity line of credit is a loan secured by a primary residence or second home to the extent of the excess of fair market value over the debt outstanding for the first mortgage. Commercial real estate, construction and land development Commercial real estate...

  • Page 256
    ...amounts reserved for those matters. Subject to the foregoing, it is the opinion of Citigroup's management, based on current knowledge and after taking into account available insurance coverage and its current legal reserves, that the eventual outcome of such matters, including the matters described...

  • Page 257
    ...Common stock ($20 par value) Balance, beginning of year-shares: 37,534,553 in 2009, 2008 and 2007 Balance, end of year-shares: 37,534,553 in 2009, 2008 and 2007 Surplus Balance, beginning of year Capital contribution from parent company Employee benefit plans Other (1) Balance, end of year Retained...

  • Page 258
    ... quarter of 2010. Additionally, revenue and net operating profit in U.S. dollar terms will be reduced on an ongoing basis. The Company has evaluated subsequent events through February 26, 2010, which is the date its Consolidated Financial Statements were issued. Citigroup guarantees various debt...

  • Page 259
    ...Year ended December 31, 2009 Other Citigroup subsidiaries, eliminations and income from discontinued operations In millions of dollars Citigroup parent company CGMHI CFI CCC Associates Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiary banks and bank holding...

  • Page 260
    ...Year ended December 31, 2008 Other Citigroup subsidiaries, eliminations and income from discontinued operations In millions of dollars Citigroup parent company CGMHI CFI CCC Associates Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiary banks and bank holding...

  • Page 261
    ...Year ended December 31, 2007 Other Citigroup subsidiaries, eliminations and income from discontinued operations In millions of dollars Citigroup parent company CGMHI CFI CCC Associates Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiary banks and bank holding...

  • Page 262
    ... and equity Deposits Federal funds purchased and securities loaned or sold Federal funds purchased and securities loaned or sold- intercompany Trading account liabilities Trading account liabilities-intercompany Short-term borrowings Short-term borrowings-intercompany Long-term debt Long-term debt...

  • Page 263
    ...' equity Deposits Federal funds purchased and securities loaned or sold Federal funds purchased and securities loaned or sold- intercompany Trading account liabilities Trading account liabilities-intercompany Short-term borrowings Short-term borrowings-intercompany Long-term debt Long-term debt...

  • Page 264
    ...-term borrowings and other investment banking and brokerage borrowings- third-party Net change in short-term borrowings and other advances-intercompany Capital contributions from parent Other financing activities Net cash provided by (used in) financing activities Effect of exchange rate changes...

  • Page 265
    ...-term borrowings and other investment banking and brokerage borrowings- third-party Net change in short-term borrowings and other advances-intercompany Capital contributions from parent Other financing activities Net cash provided by (used in) financing activities Effect of exchange rate changes...

  • Page 266
    ...short-term borrowings and other investment banking and brokerage borrowings-third-party Net change in short-term borrowings and other advances-intercompany Capital contributions from parent Other financing activities Net cash provided by (used in) financing activities Effect of exchange rate changes...

  • Page 267
    ...year. (3) Diluted shares are equal to basic shares for all four quarters of 2008 and the first, third and fourth quarter of 2009 due to the net loss available to common shareholders. Adding additional shares to the denominator would result in anti-dilution. [End of Consolidated Financial Statements...

  • Page 268
    ... $ 204 Over 12 months $ 4,752 $ 1,181 Certificates of deposit Other time deposits SHORT-TERM AND OTHER BORROWINGS (1) Federal funds purchased and securities sold under agreements to repurchase (2) In millions of dollars Commercial paper 2009 $10,223 24,667 36,884 0.99% 0.34% 2008 $29,125 31,888...

  • Page 269
    ... $0.01 per share per quarter generally so long as the U.S. Treasury or FDIC continue to hold any common stock or trust preferred securities of Citigroup issued pursuant to Citi's exchange offers. It is FRB policy that bank holding companies should generally pay dividends on common stock only out of...

  • Page 270
    ... Bank and Bank Holding Company Regulation Under U.S. federal law, Citigroup must disclose its privacy policy to consumers, permit consumers to "opt out" of having non-public customer information disclosed to third parties, and allow customers to opt out of receiving marketing solicitations based...

  • Page 271
    ... rules and regulations of those exchanges. Citigroup's other offices abroad are also subject to the jurisdiction of foreign financial services regulatory authorities. CGMI is a member of the Securities Investor Protection Corporation (SIPC), which provides protection for customers of a broker-dealer...

  • Page 272
    ... rates to fund its operations, including competition for deposits and funding in the short- and long-term debt markets. Citigroup's principal executive offices are located at 399 Park Avenue in New York City. Citigroup, and certain of its subsidiaries, is the largest tenant of this building...

  • Page 273
    ... and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Certain affiliates and subsidiaries of Citigroup are banks, registered broker-dealers or investment advisers and, in those capacities, are subject to regulation by various...

  • Page 274
    ...'s purchase of credit protection from Ambac for a $1.95 billion super-senior tranche of a CDO structured by Citigroup subsidiaries; investors and purported classes of investors in the Falcon and ASTA/MAT funds, alleging violations of federal securities and state laws arising out of Citigroup's sale...

  • Page 275
    ... against Citigroup and certain of its subsidiaries, together with Visa, MasterCard and other banks and their affiliates, in various federal district courts. These actions were consolidated with other related cases in the Eastern District of New York and captioned IN RE PAYMENT CARD INTERCHANGE FEE...

  • Page 276
    ... a complaint in the Southern District of New York seeking to hold Citibank and Bank of America, former prime brokers for AIB's subsidiary, Allfirst Bank (Allfirst), liable for losses incurred by Allfirst as a result of fraudulent and fictitious foreign currency trades entered into by one of Allfirst...

  • Page 277
    ...'s employee restricted or deferred stock program, where shares are withheld to satisfy tax requirements. N/A Not applicable For so long as the U.S. government holds any Citigroup common stock or trust preferred securities acquired pursuant to the preferred stock exchange offers consummated in 2009...

  • Page 278
    ...decades, including President and Chief Operating Officer of Morgan Stanley's institutional securities and investment banking business and was a member of the firm's Management Committee. Each executive officer has held executive or management positions with Citigroup for at least five years, except...

  • Page 279
    ... 31, 2009. The graph assumes Comparison of Five-Year Cumulative Total Return For the years ended Citigroup S&P 500 Index S&P Financial Index that $100 was invested on December 31, 2004 in Citigroup's common stock, the S&P 500 Index and the S&P Financial Index and that all dividends were reinvested...

  • Page 280
    ..." by securities dealers and others for the benefit of individual owners who may vote the shares. Transfer Agent Stockholder address changes and inquiries regarding stock transfers, dividend replacement, 1099-DIV reporting, and lost securities for common and preferred stocks should be directed to...

  • Page 281
    ...of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on the 26th day of February, 2010. Citigroup's Principal Executive Officer and a Director: Vikram S. Pandit Citigroup's Principal Financial...

  • Page 282
    ...Chief Financial Officer, Retired Medtronic Inc. Anthony M. Santomero Chairman Alcoa Inc. Timothy C. Collins Chairman Citigroup Inc. Lawrence R. Ricciardi Former President Federal Reserve Bank of Philadelphia Diana L. Taylor Chief Executive Officer and Senior Managing Director Ripplewood Holdings...

  • Page 283

  • Page 284
    ...com The cover of this annual report is printed on Accent® Opaque, an International Paper product. International Paper is certified to both the SFI® Chain of Custody standard (BV-SFICOC-209908-B) and the FSC® Chain of Custody standard (BV-COC-080209). The financial section of this annual report...