Citibank 2009 Annual Report Download - page 258

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32. SUBSEQUENT EVENTS
LQIF Acquisition
On January 31, 2010 Citigroup elected to exercise its option to acquire
approximately 8.5% of LQIF for approximately $500 million. The acquisition
of the additional shares is expected to close on April 30, 2010 and will
increase Citigroup’s ownership in LQIF to approximately 41.5%. Citigroup
retains an option to increase its ownership an additional 8.5% of LQIF in
2010 for an additional $500 million.
Venezuelan Bolivar Devaluation
The Venezuelan government enacted currency restrictions in 2003 that
have restricted Citigroup’s ability to obtain foreign currency in Venezuela
at the official foreign currency rate. Citigroup uses the official rate to re-
measure the foreign currency transactions in the financial statements of
our Venezuelan subsidiaries, which have U.S. dollar functional currencies,
into U.S. dollars. At December 31, 2009, Citigroup had net monetary assets
denominated in bolivars and subject to the official rate of approximately
$290 million.
On January 8, 2010, the Venezuelan government announced the
devaluation of the official foreign currency exchange rate from 2.15 bolivars
per dollar to 4.3 bolivars per dollar and the creation of a dual, subsidized
exchange rate of 2.6 bolivars per dollar for the importation of certain
essential goods. The devaluation in the rate is expected to result in a pretax
loss to the Company of approximately $170 million in the first 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.
33. CONDENSED CONSOLIDATING FINANCIAL
STATEMENTS SCHEDULES
These condensed Consolidating Financial Statements schedules are presented
for purposes of additional analysis but should be considered in relation to the
Consolidated Financial Statements of Citigroup taken as a whole.
Citigroup Parent Company
The holding company, Citigroup Inc.
Citigroup Global Markets Holdings Inc. (CGMHI)
Citigroup guarantees various debt obligations of CGMHI as well as all of the
outstanding debt obligations under CGMHI’s publicly issued debt.
Citigroup Funding Inc. (CFI)
CFI is a first-tier subsidiary of Citigroup, which issues commercial paper,
medium-term notes and structured equity-linked and credit-linked notes, all
of which are guaranteed by Citigroup.
CitiFinancial Credit Company (CCC)
An indirect wholly owned subsidiary of Citigroup. CCC is a wholly owned
subsidiary of Associates. Citigroup has issued a full and unconditional
guarantee of the outstanding indebtedness of CCC.
Associates First Capital Corporation (Associates)
A wholly owned subsidiary of Citigroup. Citigroup has issued a full and
unconditional guarantee of the outstanding long-term debt securities and
commercial paper of Associates. In addition, Citigroup guaranteed various
debt obligations of Citigroup Finance Canada Inc. (CFCI), a wholly owned
subsidiary of Associates. CFCI continues to issue debt in the Canadian market
supported by a Citigroup guarantee. Associates is the immediate parent
company of CCC.
Other Citigroup Subsidiaries
Includes all other subsidiaries of Citigroup, intercompany eliminations, and
income/loss from discontinued operations.
Consolidating Adjustments
Includes Citigroup parent company elimination of distributed and
undistributed income of subsidiaries, investment in subsidiaries and the
elimination of CCC, which is included in the Associates column.