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Citi 2010 Annual Report

Table of contents

  • Page 1
    Citi 2010 Annual Report

  • Page 2

  • Page 3
    ...Principles Citi works tirelessly to serve individuals, communities, institutions and nations. With 200 years of experience meeting the world's toughest challenges and seizing its greatest opportunities, we strive to create the best outcomes for our clients and customers with financial solutions that...

  • Page 4
    ... regain our company's place as the world's premier international bank. Several large trends are reshaping the financial services industry. As America's only truly global bank, Citigroup is the best-positioned bank in the world to harness those trends and deliver value to our clients and shareholders...

  • Page 5
    ...Total expenses for Citigroup were $47.4 billion, down $447 million, or 1%, from 2009 - even as we continue to make ongoing investments in talent, technology, new products, customer acquisition and expanded distribution, among others - ensuring that we have the people and the platform to meet clients...

  • Page 6
    ... will require changes to the global retail banking business model that are every bit as significant as the changes being wrought by new regulation. Social networking and technology pose perhaps the greatest challenge. More than 750 million people around the world now use social networking sites...

  • Page 7
    ...our capital to work for these clients and earn significant revenue streams from trading, foreign exchange, advisory and other services. And we are working to develop the risk management and operations and technology functions into sources of competitive advantage. In Global Transaction Services (GTS...

  • Page 8
    .... No financial institution knows more about more global markets than we do. Our challenge is to harness that knowledge and make it work for clients. 5) Provide best-in-class corporate and investment banking capabilities. Our goal is to rise to a position such that no major corporation, government or...

  • Page 9
    ... the board by implementing more training and development programs. And we are increasing our marketing efforts globally. In some cases, these investments will require upfront costs, with returns realized only over time. We also will incur new expenses as we work to comply with regulatory changes...

  • Page 10
    ... 20 major credit card products in the region. Citibank also was the first U.S. bank to launch retail banking in Vietnam, and we introduced our first-ever credit card in that market in 2010. Citi Private Bank is one of the region's leading wealth managers, offering carefully tailored services to more...

  • Page 11
    ... program provides an exclusive and individual level of service to manage both personal and business wealth. Clients enjoy unrivaled access to Citi's global banking network and all of the products and services offered across our entire franchise, including transactional banking, capital markets and...

  • Page 12
    ... parent companies in EMEA. Our well-established and highly regarded Global Transaction Services (GTS) business facilitates commercial, financial and trade flows globally for our corporate, financial and public sector clients. Through its presence in the 55 markets across EMEA, it supports 67 payment...

  • Page 13
    ... early settlement of their invoices at a financing cost related to their client's credit rating. • GTS opened new direct custody and clearing branches in Bahrain, the United Arab Emirates and Kuwait and expanded our commercial cards offerings into five new markets: South Africa, the United Arab...

  • Page 14
    ... America and Mexico supports 25 different currencies for payments in the countries we serve. With more than $93 billion in regional client assets, Citi Wealth Management is one of the largest providers of financial and investment solutions in Latin America, with services offered through Citi Private...

  • Page 15
    ...other demand deposit accounts rose by 25%, loans to small businesses increased 27% and personal and payroll loans grew 39%. Banamex today maintains Mexico's largest market share in mutual funds, cards merchant sales, equity brokerage, personal and payroll loans, pension funds, custodial services and...

  • Page 16
    ...Cash Management House in North America by Euromobey. In our Regional Consumer Banking business, more than 30,000 professionals work together to provide consumers with retail banking, small business and commercial banking, wealth management, residential real estate loans, and credit card products and...

  • Page 17
    ...markets. • Citi launched a number of innovative mobile customer solutions, including an integrated Cards/Bank application for iPhone® and for AndroidTM devices, which provides customers with anywhere, anytime access to their bank and credit card account information; Citi® Text Banking, a service...

  • Page 18
    ... with public agencies and nonprofit organizations, we provide innovative products, services, philanthropic funding and financial services expertise to support neighborhood revitalization, small-business success, asset building and college access. Embedded across the U.S., the team also works with...

  • Page 19
    ... Principles now comprise more than 70 global financial institutions from all regions of the world and have become the gold standard for managing the environmental and social risks in project finance. • Citi was the first major U.S. bank to disclose publicly a set of supplier principles for our...

  • Page 20
    ... the country. In New York City, we launched a special savings product for low-income entrepreneurs enrolled in Grameen America's lending program. 18 More than 3,000 Grameen America members now have savings accounts to help people grow their businesses, many of them for the first time. The Citi...

  • Page 21
    ... by traditional financial institutions. By the end of 2010, $100 million had been approved for lending in communities across the U.S. • Under a successful partnership launched in 2006, Citi and the Overseas Private Investment Corporation thus far have provided more than $246 million in funding to...

  • Page 22
    ... Income from Continuing Operations Citicorp Assets Citi Holdings Assets Corporate/Other Assets Citigroup Assets Deposits Total Stockholders' Equity Tier 1 Capital Ratio Tier 1 Common Ratio Book Value Per Share Common Shares Outstanding (millions) Market Capitalization Direct Staff (thousands) $ 845...

  • Page 23
    ...For the fiscal year ended December 31, 2010 Commission file number 1-9924 Citigroup Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 399 Park Avenue, New York, NY (Address of principal executive offices) 52-1568099...

  • Page 24
    ... Annual Report on Form 10-K incorporates the requirements of the accounting profession and the Securities and Exchange Commission. Form 10-K Item Number Part I 1. Business ...24-53, 57, 134-141, 144-145, 182, 301-302 71-80 Not Applicable 302-303 283-288 - 14. Principal Accounting Fees and Services...

  • Page 25
    ... GLOBAL RISK Risk Management-Overview Risk Aggregation and Stress Testing Risk Capital Credit Risk Loan and Credit Overview Loans Outstanding Details of Credit Loss Experience Impaired Loans, Non-Accrual Loans and Assets, and Renegotiated Loans U.S. Consumer Mortgage Lending North America Cards...

  • Page 26
    ... businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services. Citi has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup currently operates, for management reporting...

  • Page 27
    ... trade solutions - Securities and fund services - Consumer finance lending: residential and commercial real estate; auto, personal and student loans; and consumer branch lending - Retail partner cards - Investment in Primerica Financial Services - Certain international consumer lending (including...

  • Page 28
    ... 2010, Citi released $5.8 billion in net reserves for loan losses and unfunded lending commitments, primarily driven by international Regional Consumer Banking, retail partner cards in Local Consumer Lending and the Corporate loan portfolio, while it built $8.3 billion of reserves in 2009. The total...

  • Page 29
    ... Funding Citigroup maintained a high level of liquidity, with aggregate liquidity resources (including cash at major central banks and unencumbered liquid securities) of $322 billion at year-end 2010, up from $316 billion at year-end 2009. Citi also continued to grow its deposit base, closing 2010...

  • Page 30
    ... Citigroup's net income (loss) Less: Preferred dividends-Basic Impact of the conversion price reset related to the $12.5 billion convertible preferred stock private issuance-Basic Preferred stock Series H discount accretion-Basic Impact of the public and private preferred stock exchange offer...

  • Page 31
    ... international insurance business; and Citigroup's Argentine pension business sold to MetLife Inc. Discontinued operations for the second half of 2010 also reflect the sale of The Student Loan Corporation. See Note 3 to the Consolidated Financial Statements. (4) The diluted EPS calculation for 2009...

  • Page 32
    ... for Citigroup on a segment, business and product view: CITIGROUP INCOME (LOSS) In millions of dollars 2010 2009 2008 % Change 2010 vs. 2009 % Change 2009 vs. 2008 Income (loss) from continuing operations CITICORP Regional Consumer Banking North America EMEA Latin America Asia Total $ 607...

  • Page 33
    ...NM NM 56% Securities and Banking North America EMEA Latin America Asia Total Transaction Services North America EMEA Latin America Asia Total Institutional Clients Group Total Citicorp CITI HOLDINGS Brokerage and Asset Management Local Consumer Lending Special Asset Pool Total Citi Holdings $19...

  • Page 34
    ...of the following businesses: Regional Consumer Banking (which includes retail banking and Citi-branded cards in four regions-North America, EMEA, Latin America and Asia) and Institutional Clients Group (which includes Securities and Banking and Transaction Services). In millions of dollars 2010 $38...

  • Page 35
    ... services to retail customers. RCB also contains Citigroup's branded cards business and Citi's local commercial banking business. RCB is a globally diversified business with over 4,200 branches in 39 countries around the world. During 2010, 54% of total RCB revenues were from outside North America...

  • Page 36
    ... (loss) from continuing operations by business Retail banking Citi-branded cards Total NM Not meaningful 2% NM 72% (4)% NM (17)% 14% (16) - NM NM NM 2010 vs. 2009 Revenues, net of interest expense increased 72% from the prior year, primarily due to the consolidation of securitized credit card...

  • Page 37
    ... were fairly flat as higher credit losses in the securitization trusts were offset by higher net interest margin in cards, higher volumes in retail banking, and higher gains from loan sales in mortgages. Net interest revenue was up 20% driven by the impact of pricing actions relating to the CARD Act...

  • Page 38
    ... customer portfolios, across EMEA RCB markets. The lower lending revenues were partially offset by a 45% growth in investment sales with assets under management increasing by 14%. Net interest revenue was 5% lower than the prior year due to lower retail volumes, with average loans for retail banking...

  • Page 39
    ... market conditions at the start of 2009, 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 down...

  • Page 40
    ... 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 Citi-branded cards Total Income (loss) from continuing operations by business Retail banking Citi-branded cards Total...

  • Page 41
    ... compression in the branded cards business that offset the growth in loans, deposits and investment products in the retail business. Non-interest revenue decreased 13%, driven also by FX translation and lower branded cards fee income from lower customer activity. Operating expenses decreased 51...

  • Page 42
    ... 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 Citi-branded cards Total Income from continuing operations by business Retail banking Citi-branded cards Total NM...

  • Page 43
    ... of the gain on Visa shares in 2008, lower investment product revenues and cards purchase sales, lower spreads, and the impact of FX translation. Net interest revenue was 5% lower than in 2008. Average loans and deposits were down 10% and 4%, respectively, in each case partly due to the impact...

  • Page 44
    ...Administration and other fiduciary fees Investment banking Principal transactions Other Total non-interest revenue Net interest revenue (including dividends) Total revenues, net of interest expense Total operating expenses Net credit losses Provision (release) for unfunded lending commitments Credit...

  • Page 45
    ... and commercial banking services and products for corporations, governments, institutional and retail investors, and high-net-worth individuals. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured...

  • Page 46
    ... $0.2 billion and positive $0.3 billion in the current year and prior year, respectively). This decrease primarily reflected weaker results in rates and currencies, credit products and securitized products, due to an overall weaker market environment. Equity markets declined from $5.4 billion...

  • Page 47
    ... 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 from trade loans and fees for transaction processing and fees on assets under custody and administration in SFS. In millions of dollars...

  • Page 48
    ... than 30 divestiture transactions, including Smith Barney, Nikko Cordial Securities, Nikko Asset Management, Primerica Financial Services, various credit card businesses (including Diners Club North America) and The Student Loan Corporation (which is reported as discontinued operations within the...

  • Page 49
    ... Cordial Securities (reported as discontinued operations within Corporate/Other for all periods presented). At December 31, 2010, BAM had approximately $27 billion of assets, primarily consisting of Citi's investment in, and assets related to, the MSSB JV. Morgan Stanley has options to purchase Citi...

  • Page 50
    ... by assets as of December 31, 2010, includes a portion of Citigroup's North American mortgage business, retail partner cards, Western European cards and retail banking, CitiFinancial North America and other local Consumer finance businesses globally. The Student Loan Corporation is reported as...

  • Page 51
    ...taken in recent years. These actions may also reduce credit availability and increase potential claims and losses relating to gray zone interest. In September 2010, one of Japan's largest consumer finance companies (Takefuji) declared bankruptcy and is currently in the process of restructuring, with...

  • Page 52
    ... of $0.5 billion on Alt-A mortgages and $0.4 billion on commercial real estate. Operating expenses decreased 33% in 2010, mainly driven by the absence of the U.S. government loss-sharing agreement, lower compensation, and lower transaction expenses. Provisions for credit losses and for benefits and...

  • Page 53
    ...and letters of credit (LCs) in held-for-investment (HFI)/held-for-sale (HFS) (3) Corporates Commercial real estate (CRE) Other (4) Loan loss reserves Total loans, leases and LCs in HFI/HFS Mark to market Subprime securities Other securities (5) Derivatives Loans, leases and LCs Repurchase agreements...

  • Page 54
    ... leveraged loans and financing commitments (4) Commercial real estate positions (2)(5) Structured investment vehicles' (SIVs) assets ARS proprietary positions (6) CVA related to exposure to monoline insurers CVA on Citi debt liabilities under fair value option CVA on derivatives positions, excluding...

  • Page 55
    ...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 Limited recorded in operations and technology. These declines were partially offset by a pretax gain related to the exchange offers, revenues and...

  • Page 56
    ... banks. Loans Loans include credit cards, mortgages, other real estate lending, personal loans, auto loans, student loans and corporate loans. Citigroup loans are reported in two categories-Consumer and Corporate. These categories are classified according to the segment and sub-segment that manage...

  • Page 57
    ... information on Citi's loan portfolios, see generally "Managing Global Risk-Credit Risk" and Notes 1 and 16 to the Consolidated Financial Statements. Trading Account Assets and Liabilities Trading account assets includes debt and marketable equity securities, derivatives in a receivable position...

  • Page 58
    ... assets, see Note 18 to the Consolidated Financial Statements. For further information on Brokerage receivables, see Note 13 to the Consolidated Financial Statements. Deposits Deposits represent customer funds that are payable on demand or upon maturity. For a discussion of deposits, see "Capital...

  • Page 59
    ... 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 60
    ... businesses; reviewing the funding and capital markets plan for Citigroup; and setting and monitoring corporate and bank liquidity levels, and the impact of currency translation on non-U.S. capital. Citigroup is subject to the risk-based capital guidelines issued by the Federal Reserve Board...

  • Page 61
    ... As noted in the table above, Citigroup was "well capitalized" under the current federal bank regulatory agency definitions as of December 31, 2010 and December 31, 2009. Components of Capital Under Regulatory Guidelines In millions of dollars at year end 2010 $163,156 (2,395) (2,650) (4,105) 164...

  • Page 62
    ... to recognize repurchase agreements and securities lending agreements as secured borrowing transactions for Federal bank regulatory reporting purposes at December 31, 2009. See Note 1 to the Consolidated Financial Statements for further discussion. As of December 31, 2010, $6.7 billion of stock...

  • Page 63
    ... ratio requirements, as well as policy statements of the federal regulatory agencies that indicate that banking organizations should generally pay dividends out of current operating earnings. Citigroup did not receive any dividends from its bank subsidiaries during 2010. See also "Funding and...

  • Page 64
    ... as of December 31, 2010. This information is provided Tier 1 Common ratio Impact of $1 billion change in risk-weighted assets 1.1 bps 2.2 bps for the purpose of analyzing the impact that a change in Citigroup's or Citibank, N.A.'s financial position or results of operations could have on these...

  • Page 65
    ... credit and operational risks, in June 2010, the Basel Committee agreed on certain revisions to the market risk capital framework that would also result in additional capital requirements. In December 2010, the U.S. banking agencies issued a proposal that would amend their market risk capital rules...

  • Page 66
    ...primarily in the form of commercial paper and secured financing (securities loaned or sold under agreements to repurchase) at the non-bank level. Citigroup works to ensure that the structural tenor of these funding sources is sufficiently long in relation to the tenor of its asset base. In fact, the...

  • Page 67
    ... to enable them to execute the forward stock purchase contract in March 2010. (2) Includes $1.9 billion of senior debt issued under remarketing of $1.9 billion of Citigroup Capital XXX Trust Preferred securities held by ADIA to enable them to execute the forward stock purchase contract in September...

  • Page 68
    ... borrowings generally include (i) secured financing (securities loaned or sold under agreements to repurchase) and (ii) short-term borrowings consisting of commercial paper and borrowings from banks and other market participants. As required by SEC rules, the following table contains the year-end...

  • Page 69
    ...in the Secured Financing and Short-Term Borrowings table above) include $42.4 billion of borrowings from banks and other market participants, which includes borrowings from the Federal Home Loan Banks. This represented a decrease of approximately $11 billion as compared to year-end 2009. The average...

  • Page 70
    ... portion of Citigroup's balance sheet. Cash capital measures the amount of long-term funding-or core customer deposits, long-term debt (over one year) and equity-available to fund illiquid assets. Illiquid assets generally include loans (net of securitization adjustments), securities haircuts and...

  • Page 71
    ... of the credit rating agencies is evaluating the impact of the DoddFrank Wall Street Reform and Consumer Protection Act of 2010 (Financial Reform Act) on the rating support assumptions currently included in their methodologies, as related to large U.S. bank holdings companies (see also "Risk Factors...

  • Page 72
    ... related to these insurance and investment contracts are included as Other liabilities on the Consolidated Balance Sheet. Contractual obligations by year In millions of dollars at December 31, 2010 Long-term debt obligations (1) Operating and capital lease obligations Purchase obligations...

  • Page 73
    ...For more information on Basel III and other requirements and proposals relating to capital adequacy, see "Capital Resources-Regulatory Capital Standards Developments" above. Even though Citigroup continues to be "well capitalized" in accordance with current federal bank regulatory agency definitions...

  • Page 74
    ... future requirements remains uncertain. Further, the so-called "Collins Amendment" reflected in the Financial Reform Act will result in new minimum capital requirements for bank holding companies such as Citigroup, and provides for the phase-out of trust preferred securities and other hybrid capital...

  • Page 75
    ... developed markets, and are subject to changing political, social, economic and financial factors, including currency exchange laws or other laws or restrictions applicable to companies or investments in those markets or countries. Citi's extensive global operations also expose it to sovereign risk...

  • Page 76
    ... support assumptions currently included in their methodologies as related to large U.S. bank holding companies, including Citigroup. These evaluations are generally a result of the rating agencies' belief that the Financial Reform Act, including the establishment and development of the new orderly...

  • Page 77
    ... $482 million to $969 million at December 31, 2010. See "Managing Global Risk-Credit Risk-Consumer Mortgage Representations and Warranties" below. Pursuant to U.S. GAAP, Citigroup is required to use certain assumptions and estimates in calculating repurchase reserves. If these assumptions or...

  • Page 78
    ... Volatile financial markets and reduced (or only slightly increased) levels of client business activity may continue to negatively impact Citigroup's business, capital, liquidity, financial condition and results of operations, as well as the trading price of Citigroup's common stock, preferred stock...

  • Page 79
    ... developments or requirements relating to or impacting liquidity. During 2010, consistent with its strategy, Citigroup continued to divest relatively higher yielding assets from Citi Holdings. The desire to maintain adequate liquidity continued to cause Citigroup to invest its available funds...

  • Page 80
    ... its trust preferred securities continue to be held by the U.S government. Pursuant to its agreements with certain U.S. government entities, dated June 9, 2009, executed in connection with Citi's exchange offers consummated in July and September 2009, Citigroup remains subject to dividend and share...

  • Page 81
    ..., see "Significant Accounting Policies and Significant Estimates" below, and for further information relating to litigation and regulatory exposures, see Note 29 to the Consolidated Financial Statements. Citigroup may incur significant losses as a result of ineffective risk management processes and...

  • Page 82
    ... to these clients and customers around the world. Citigroup's brand could be harmed if its public image or reputation were to be tarnished by negative publicity, whether or not true, about Citigroup or the financial services industry in general, or by a negative perception of Citigroup's short-term...

  • Page 83
    ... and local regulators. In addition, the positions of Product Chief Risk Officers are created for those risk areas of critical importance to Citigroup, currently real estate and structural market risk as well as fundamental credit. The Product Chief Risk Officers are accountable for the risks within...

  • Page 84
    ... financial or contractual obligations. •฀ Market risk losses arise from fluctuations in the market value of trading and non-trading positions, including the changes in value resulting from fluctuations in rates. •฀ Operational risk losses result from inadequate or failed internal processes...

  • Page 85
    ..., which were partially offset by increases due to the weakening of certain borrowers. For Citi's loan accounting policies, see Note 1 to the Consolidated Financial Statements. See Notes 16 and 17 for additional information on Citigroup's Consumer and Corporate loan, credit and allowance data. 83

  • Page 86
    ... millions of dollars at year end 2010 2009 2008 2007 2006 Consumer loans In U.S. offices Mortgage and real estate (1) Installment, revolving credit, and other Cards (2)(3) Commercial and industrial Lease financing In offices outside the U.S. Mortgage and real estate (1) Installment, revolving...

  • Page 87
    [THIS PAGE INTENTIONALLY LEFT BLANK] 85

  • Page 88
    ... Gross credit losses Consumer In U.S. offices In offices outside the U.S. Corporate Mortgage and real estate In U.S. offices In offices outside the U.S. Governments and official institutions outside the U.S. Loans to financial institutions In U.S. offices In offices outside the U.S. Commercial and...

  • Page 89
    .... 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 related to the transfer of the U.K. cards portfolio...

  • Page 90
    ...all available evidence including, as appropriate, the present value of the expected future cash flows discounted at the loan's original effective rate, the secondary market value of the loan and the fair value of collateral less disposal costs. (1) Prior to 2008, Citi's financial accounting systems...

  • Page 91
    ... is no Non-Accrual Loans In millions of dollars industry-wide definition of non-accrual assets, however, and as such, analysis across the industry is not always comparable. Corporate and Consumer (commercial markets) non-accrual loans may still be current on interest payments but are considered non...

  • Page 92
    ... to market at the transfer date and, therefore, no allowance was necessary at the time of the transfer. $2.426 billion of the par value of the loans reclassified was written off prior to transfer. (2) The allowance for loan losses includes the allowance for credit card and purchased distressed loans...

  • Page 93
    ... of dollars Dec. 31, 2010 Dec. 31, 2009 Corporate renegotiated loans (1) In U.S. offices Commercial and industrial (2) Mortgage and real estate (3) Other In offices outside the U.S. Commercial and industrial (2) Mortgage and real estate (3) Other Total Corporate renegotiated loans Consumer...

  • Page 94
    ... Pricing Corporate Loans Due Over 1 year within but within 5 years 1 year Over 5 years U.S. Consumer Mortgage Lending In millions of dollars at year end Total Corporate loan portfolio maturities In U.S. offices Commercial and industrial loans Financial institutions Mortgage and real estate...

  • Page 95
    ...Home Affordable Modification Program (HAMP). For second mortgages, the net credit loss and delinquencies of 90 days or more were relatively stable compared to the third quarter of 2010. For information on Citi's loan modification programs regarding mortgages, see "Consumer Loan Modification Programs...

  • Page 96
    ... 1Q09 2Q09 3Q09 2.21% $0.7 $0.6 4Q09 1Q10 2Q10 3Q10 4Q10 Note: Includes loans for Canada and Puerto Rico. Excludes loans recorded at fair value and loans that are guaranteed by U.S. government agencies. Second Mortgages NCL $B NCL % 90+ $B 90+DPD % 6.74% 5.60% 5.52% $1.4 3.06% $0.9 1.35...

  • Page 97
    ... be material to reconcile to the information presented elsewhere. Citi's credit risk policy is not to offer option adjustable rate mortgages (ARMs)/negative amortizing mortgage products to its customers. As a result, option ARMs/negative amortizing mortgages represent an insignificant portion of...

  • Page 98
    ...< 620 *LTV > 100% % Total 49.0% 4.8% $12.7 $9.0 16.7% 5.4% $2.5 $5.3 34.3% 9.0% $9.6 $12.7 * Refreshed FICO and LTV. Note: First mortgage table excludes Canada and Puerto Rico, deferred fees/costs, loans recorded at fair value, loans guaranteed by U.S. government agencies and loans subject to LTSCs...

  • Page 99
    ... excludes loans in Canada and Puerto Rico, loans guaranteed by U.S. government agencies, loans recorded at fair value and loans subject to LTSCs. Balances excludes deferred fees/costs. Balances based on refreshed FICO and LTV ratios. Chart/table also excludes balances for which FICO or LTV data was...

  • Page 100
    ... 14%, from December 2009. Second mortgage loans with refreshed FICO score below 660 and refreshed LTV above 100% were $6.1 billion as of December 31, 2010, $0.6 billion, or 8%, lower than the balance as of December 2009. Across both portfolios, 90+ DPD rates have generally improved since December 31...

  • Page 101
    ...information on Citi's MSRs, see Notes 18 and 22 to the Consolidated Financial Statements. As part of its mortgage lending activity, Citigroup commonly enters into purchase commitments to fund residential mortgage loans at specific interest rates within a given period of time, generally up to 60 days...

  • Page 102
    ...% 8.80% 2.82% 2.36% 2.06% 1Q08 Note: Includes Puerto Rico. 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Retail Partner Cards NCL $B NCL % 90+ $B 90+DPD % $2.7 12.81% 12.24% 11.71% $1.9 $2.0 6.88% $1.2 2.76% $1.7 $1.6 $1.5 4.42% 3.80% $1.4 3.47% 1Q08 2Q08 3Q08 4Q08...

  • Page 103
    ...of the retail partner cards portfolio had scores of 660 or above. These percentages reflect an improvement during 2010. Balances: December 31, 2010 Refreshed FICO ≥ 660 620 ≤ FICO < 660 FICO < 620 Citi-Branded 77% 9% 14% Retail Partner 69% 13% 18% FICO Trend Information-North America Cards Citi...

  • Page 104
    ... Installment portfolio consists of Consumer 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...

  • Page 105
    ... in Note 1 to the Consolidated Financial Statements. (4) The 90+ days and 30-89 days past due and related ratios for North America Regional Consumer Banking exclude U.S. mortgage loans that are guaranteed by U.S. government sponsored agencies since the potential loss predominantly resides within the...

  • Page 106
    ... Ratio North America retail partner cards Add: impact of credit card securitizations (3) Managed NCL Ratio North America (excluding cards) Ratio Total Citigroup (excluding Special Asset Pool) Add: impact of credit card securitizations (3) Managed NCL Ratio (1) Average loans include interest and fees...

  • Page 107
    ... (generally once in 12 months and twice in five years). Furthermore, Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans are modified under those respective agencies' guidelines, and payments are not always required in order to re-age a modified loan to current...

  • Page 108
    ... payment relief based on a floor interest rate by product type. All adjustable rate and interest only loans are converted to fixed rate, amortizing loans for the remaining mortgage term. Because the borrower has been offered terms that are not available in the general market, the loan is accounted...

  • Page 109
    ..., customers work with a credit counseling agency to develop a plan to handle their overall budget, including money owed to Citi. A copy of the counseling agency's proposal letter is required. The annual percentage rate (APR) is reduced to 9.9% and the account fully amortizes in 60 months. Under...

  • Page 110
    ... Loans Cards Mortgage and real estate Installment and other December 31, 2010 Accrual Non-accrual $2,757 $ - 1,634 70 1,086 110 Significant short-term U.S. programs include: North America Cards Universal Payment Program (UPP). The North America cards business provides short-term interest rate...

  • Page 111
    ... 31, 2010, to summarize the impact of such programs. Similarly, the short-term AOT program has less vintage history and limited loss data. Cards Modification Programs Generally, at 24 months after modification, the total balance reduction for long-term card modification programs is approximately...

  • Page 112
    ...of dollars GSEs Private investors Total As evidenced in the table above, to date, Citi's repurchases have primarily been from the U.S. government sponsored entities (GSEs). In addition, Citi recorded make-whole payments of $310 million and $49 million for the years ended December 31, 2010 and 2009...

  • Page 113
    ... the loan's fair value and unpaid principal balance at the time of the repurchase is recorded as a utilization of the repurchase reserve. Make-whole payments to the investor are also treated as utilizations and charged directly against the reserve. The repurchase reserve is estimated when Citi sells...

  • Page 114
    ...194 6,560 $1,352 Year ended December 31, 2010 2009 $ 482 16 917 (446) $ 969 $ 75 34 492 (119) $ 482 Dollars in millions Balance, beginning of period Additions for new sales Change in estimate Utilizations Balance, end of period GSEs Private investors Mortgage insurers (1) Total Number of claims...

  • Page 115
    ...) relating to the mortgage loans included in each trust issuing the securities were made either by (1) Citi, or (2) in a relatively small number of cases, third-party sellers (Selling Entities, which were also often the originators of the loans). These representations were generally made...

  • Page 116
    CORPORATE LOAN DETAILS Corporate Credit Portfolio For corporate clients and investment banking activities across Citigroup, the credit process is grounded in a series of fundamental policies, in addition to those described under "Managing Global Risk-Risk Management- Overview," above. These ...

  • Page 117
    ...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, 2010 and 2009...

  • Page 118
    ... 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 the net income of the investee. The following table provides a summary of Citigroup's global CRE funded and unfunded exposures at December 31, 2010...

  • Page 119
    ... estimate of future interest rates and incorporate possible changes in the Federal Funds rate as well as the shape of the yield curve. Interest Rate Risk Governance One of Citigroup's primary business functions is providing financial products that meet the needs of its customers. Loans and deposits...

  • Page 120
    ...year reflect revised modeling of mortgages and deposits based on lower rates, pricing changes due to the CARD Act, asset sales, debt issuance and swapping activities, as well as repositioning of the liquidity portfolio. Certain trading-oriented businesses within Citi have accrual-accounted positions...

  • Page 121
    ... risk management ensures that factor sensitivities are calculated, monitored and, in most cases, limited, for all relevant risks taken in a trading portfolio. VAR estimates the potential decline in the value of a position or a portfolio under normal market conditions. The VAR method incorporates...

  • Page 122
    ... Securities and Banking business (ICG Citicorp VAR, which excludes Consumer) during 2010: In millions of dollars Dec. 31, 2010 Interest rate Foreign exchange Equity Commodity Covariance adjustment Total-all market risk factors, including general and specific risk Specific risk-only component Total...

  • Page 123
    ...-term debt and accounted for at fair value with changes recorded in Principal transactions. A significant portion of Citi's business activities are based upon gathering deposits and borrowing money and then lending or investing those funds, or participating in market making activities in tradable...

  • Page 124
    ...074 2010 0.75% % Average rate 2009 0.79% 2008 3.98% 2010 2009 2008 77,200 Assets Deposits with banks (5) Federal funds sold and securities borrowed or purchased under agreements to resell (6) In U.S. offices In offices outside the U.S. (5) Total Trading account assets In U.S. offices In offices...

  • Page 125
    ...rate 2009 2008 2010 2009 2008 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 (7) In U.S. offices In offices outside the U.S. (6) Total Trading...

  • Page 126
    ... Average rate $ (3,725) Net change $ (1,596) 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 U.S. offices In offices outside the U.S. (4) Total (5) $ $ 311...

  • Page 127
    ... 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 liabilities (5) In U.S. offices In offices outside the U.S. (4) Total Short-term...

  • Page 128
    ... 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 reviewing and testing recovery procedures. The operational risk standards...

  • Page 129
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  • Page 130
    ... parties (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...

  • Page 131
    ...Venezuelan Operations Citi's total sovereign exposure is defined as loans net of hedges, unfunded lending commitments, available for sale securities, trading securities, and securities purchased under agreements to resell, in which the direct obligor is a foreign government. Trading account assets...

  • Page 132
    ...changes in the credit risk of Citi or its counterparties, or changes in the credit mitigants (collateral and netting agreements) associated with the derivative instruments. The table below summarizes the CVA applied to the fair value of derivative instruments as of December 31, 2010 and 2009. Credit...

  • Page 133
    ... contracts Citigroup either purchases or writes protection on either a single-name or portfolio basis. Citi primarily uses credit derivatives to help mitigate credit risk in its corporate loan portfolio and other cash positions, and to facilitate client transactions. Credit derivatives generally...

  • Page 134
    ...Broker-dealer Monoline Non-financial Insurance and other financial institutions Total by industry/counterparty By instrument Credit default swaps and options Total return swaps and other Total by instrument By rating Investment grade Non-investment grade (1) Total by rating By maturity Within 1 year...

  • Page 135
    ... manage credit risk. The majority of this activity was transacted with other financial intermediaries, including both banks and broker-dealers. Citigroup generally has a mismatch between the total notional amounts of protection purchased and sold and it may hold the reference assets directly, rather...

  • Page 136
    ... 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 137
    ... lending commitments flow through the Consolidated Statement of Income on the line Provision for unfunded lending commitments. For a further description of the loan loss reserve and related accounts, see "Managing Global Risk-Credit Risk" and Notes 1 and 17 to the Consolidated Financial Statements...

  • Page 138
    ... of January 1, 2010, at carrying values or unpaid principal amounts, except for certain private label residential mortgage and mutual fund deferred sales commissions VIEs, for which the fair value option was elected. The following tables present the impact of adopting these new accounting standards...

  • Page 139
    ... earnings Total stockholders' equity Total liabilities and stockholders' equity The FASB issued Accounting Standards Update No. 2010-10, Consolidation (Topic 810), Amendments for Certain Investment Funds (ASU 2010-10) in the first quarter of 2010. ASU 2010-10 provides a deferral to the requirements...

  • Page 140
    ...North America Regional Consumer Banking, Latin America Regional Consumer Banking, Securities and Banking, Local Consumer Lending-Cards and Local Consumer Lending-Other. In addition to employing the market approach for estimating the fair value for the selected reporting units in 2009, the DCF method...

  • Page 141
    ... do not directly impact the individual reporting unit fair values as of July 1, 2010, included the continued economic stake and influence held by the U.S. government in Citi at the time the annual test was performed. In addition, the market capitalization of Citigroup reflects the execution risk in...

  • Page 142
    ... related to the loan losses recorded upon consolidation of Citi's credit card trusts. Although realization is not assured, Citigroup believes that the realization of the recognized net DTAs of $52.1 billion at December 31, 2010 is more likely than not based upon expectations as to future taxable...

  • Page 143
    ... Statements for information regarding Citi's policies on establishing reserves for legal and regulatory claims. ACCOUNTING CHANGES AND FUTURE APPLICATION OF ACCOUNTING STANDARDS See Note 1 to the Consolidated Financial Statements for a discussion of "Accounting Changes" and the "Future Application...

  • Page 144
    ...is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, including without limitation that information required to be disclosed by Citi in its SEC filings, is accumulated and communicated to management, including the Chief Executive Officer (CEO...

  • Page 145
    ... to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Citigroup management assessed the effectiveness of Citigroup's internal control over financial reporting...

  • Page 146
    ... of Financial Condition and Results of Operations, are "forward-looking statements" within the meaning of the rules and regulations of the SEC. Generally, forward-looking statements are not based on historical facts but instead represent only Citigroup's and management's beliefs regarding future...

  • Page 147
    ...condition and results of operations; •฀ the accuracy of Citi's assumptions and estimates, including in determining credit loss reserves, litigation and regulatory exposures, mortgage representation and warranty claims and the fair value of certain assets, used to prepare its financial statements...

  • Page 148
    ... 2010 and 2009, 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, 2010, and our report dated February 25, 2011 expressed an unqualified opinion on those consolidated financial statements...

  • Page 149
    ... statements, in 2010 the Company changed its method of accounting for qualifying special purpose entities, variable interest entities and embedded credit derivatives, and in 2009, the Company changed its method of accounting for other-thantemporary impairments on investment securities, business...

  • Page 150
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  • Page 151
    ... Transactions Note 8 - Incentive Plans Note 9 - Retirement Benefits Note 10 - Income Taxes Note 11 - Earnings per Share Note 12 - Federal Funds/Securities Borrowed, Loaned, and Subject to Repurchase Agreements Note 13 - Brokerage Receivables and Brokerage Payables Note 14 - Trading Account Assets...

  • Page 152
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  • Page 153
    ...(1) As of January 1, 2009, the Company adopted ASC 320-10-65, Investments-Debt and Equity Securities. The Company disclosed comparable information with the prior year in its 2009 periodic reports. (2) The Diluted EPS calculation for 2009 and 2008 utilizes Basic shares and Income available to common...

  • Page 154
    ... segregated cash and other deposits) Deposits with banks Federal funds sold and securities borrowed or purchased under agreements to resell (including $87,512 and $87,812 as of December 31, 2010 and 2009, respectively, at fair value) Brokerage receivables Trading account assets (including $117,554...

  • Page 155
    ..., 2010 and 2009, respectively, at fair value) Total deposits Federal funds purchased and securities loaned or sold under agreements to repurchase (including $121,193 and $104,030 as of December 31, 2010 and 2009, respectively, at fair value) Brokerage payables Trading account liabilities Short-term...

  • Page 156
    ...related warrants ADIA Upper Decs Equity Units Purchase Contract Other Balance, end of year Retained earnings Balance, beginning of year Adjustment to opening balance, net of taxes (1) (2) Adjusted balance, beginning of period Net income (loss) Common dividends (3) Preferred dividends Preferred stock...

  • Page 157
    ... share repurchase plan and relate to customer fails/errors. (5) Reflects adjustments to the funded status of pension and postretirement plans, which is the difference between the fair value of the plan assets and the projected benefit obligation. See Note 9 to the Consolidated Financial Statements...

  • Page 158
    ...resell Change in federal funds purchased and securities loaned or sold under agreements to repurchase Change in brokerage receivables net of brokerage payables Realized gains from sales of investments Change in loans held-for-sale Other, net Total adjustments Net cash provided by (used in) operating...

  • Page 159
    ... 4,832 6,840 80,439 Assets Cash and due from banks Deposits with banks Federal funds sold and securities purchased under agreements to resell Trading account assets (including $1,006 and $914 pledged to creditors at December 31, 2010 and 2009, respectively) Investments (including $5,221 and $3,849...

  • Page 160
    ... in offices outside the U.S. Total deposits Trading account liabilities Purchased funds and other borrowings Accrued taxes and other expenses Long-term debt and subordinated notes Other liabilities Total liabilities Citibank stockholder's equity Capital stock ($20 par value) outstanding shares: 37...

  • Page 161
    ... Limited Partners Have Certain Rights"). Foreign Currency Translation Citibank, N.A. is a commercial bank and wholly owned subsidiary of Citigroup Inc. Citibank's principal offerings include Consumer finance, mortgage lending, and retail banking products and services; investment banking, commercial...

  • Page 162
    ...physical commodities inventory. In addition (as set out in Note 26 to the Consolidated Financial Statements), certain assets that Citigroup has elected to carry at fair value under the fair value option, such as loans and purchased guarantees, are also included in Trading account assets. Securities...

  • Page 163
    ... income (loss) in any period. Management believes that this error was immaterial to Citigroup's financial statements during all periods at issue. Commencing in the first quarter of 2010, the Company has prospectively changed the accounting for these repurchase and securities lending transactions so...

  • Page 164
    ... loans represent loans and leases managed primarily by the Regional Consumer Banking and Local Consumer Lending businesses. As a general rule, interest accrual ceases for installment and real estate (both open- and closed-end) loans when payments are 90 days contractually past due. For credit cards...

  • Page 165
    ... of the allowance for loan losses, management may incorporate guarantor support. The financial wherewithal of the guarantor is evaluated, as applicable, based on net worth, cash flow statements and personal or company financial statements which are updated and reviewed at least annually. Citi seeks...

  • Page 166
    ...the Company sells or securitizes loans acquired through purchase or origination and retains the right to service the loans. Servicing rights in the U.S. mortgage classes of servicing rights are accounted for at fair value, with changes in value recorded in current earnings. Additional information on...

  • Page 167
    ...) relating to the mortgage loans included in each trust issuing the securities were made either by (1) Citi, or (2) in a relatively small number of cases, third-party sellers (Selling Entities, which were also often the originators of the loans). These representations were generally made...

  • Page 168
    ...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 other intangible assets, but excluding MSRs-are amortized over their estimated useful...

  • Page 169
    ...either directly or through the use of derivative financial products, including interestrate swaps, futures, forwards, and purchased-option positions, as well as foreign-exchange contracts. These end-user derivatives are carried at fair value in Other assets, Other liabilities, Trading account assets...

  • Page 170
    ... Transactions The Company has related party transactions with certain of its subsidiaries and affiliates. These transactions, which are primarily short-term in nature, include cash accounts, collateralized financing transactions, margin accounts, derivative trading, charges for operational support...

  • Page 171
    ... Fair Value Measurements. The ASU requires disclosure of the amounts of significant transfers in and out of Levels 1 and 2 of the fair value In June 2009, the FASB issued SFAS No. 166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140 (SFAS 166, now incorporated...

  • Page 172
    ... of January 1, 2010, at carrying values or unpaid principal amounts, except for certain private label residential mortgage and mutual fund deferred sales commissions VIEs, for which the fair value option was elected. The following tables present the impact of adopting these new accounting standards...

  • Page 173
    ... earnings Total stockholders' equity Total liabilities and stockholders' equity The FASB issued Accounting Standards Update No. 2010-10, Consolidation (Topic 810), Amendments for Certain Investment Funds (ASU 2010-10) in the first quarter of 2010. ASU 2010-10 provides a deferral to the requirements...

  • Page 174
    ... Level 3 of the fair value hierarchy. This ASU did not have a material impact on the Company's accounting for its investments in alternative investment funds. Multiple Foreign Exchange Rates In May 2010, the FASB issued ASU 2010-19, Foreign Currency Issues: Multiple Foreign Currency Exchange Rates...

  • Page 175
    ... market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. This ASU did not have a material impact on the Company's fair value measurements. Other-Than-Temporary Impairments on Investment Securities The cumulative effect of the change included...

  • Page 176
    ...of future payments, the related fair value, and the current status of the payment/performance risk for certain guarantees and credit derivatives sold. On January 1, 2008, the Company adopted Staff Accounting Bulletin No. 109 (SAB 109), which requires that the fair value of a written loan commitment...

  • Page 177
    ... roll-forward of the changes in fair value of plan assets classified 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...

  • Page 178
    ... to be material 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 was recorded in 2009. Year-end CVA reserve reported as a contra-liability on FVO...

  • Page 179
    ...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 180
    ... and the market approaches. Sale of Citigroup Technology Services Limited On December 31, 2009, the Company sold 100% of its interest in Phibro LLC to Occidental Petroleum Corporation for a purchase price equal to approximately the net asset value of the business. The decision to sell Phibro was...

  • Page 181
    ... into definitive agreements that resulted in the divestiture of Citi's private student loan business and approximately $31 billion of its approximate $40 billion in assets to Discover Financial Services (Discover) and SLM Corporation (Sallie Mae). The transaction closed on December 31, 2010. As part...

  • Page 182
    ... investing activities Cash flows from financing activities Net cash provided by (used in) discontinued operations (1) Total revenues include gain or loss on sale, if applicable. (2) During 2010, the Company completed an income tax audit in Germany related to the business sold in 2008. As a result...

  • Page 183
    ... by Citigroup. CitiCapital had approximately 1,400 employees and 160,000 customers throughout North America. Results for all of the CitiCapital businesses sold, as well as the net loss recognized in 2008 from this sale, are reported as Discontinued operations for all periods presented. Summarized...

  • Page 184
    ...array of banking, credit card lending, and investment services through a network of local branches, offices and electronic delivery systems. The Company's ICG segment is composed of Securities and Banking and Transaction Services and provides corporations, governments, institutions and investors in...

  • Page 185
    ... 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, such as loan commitments, standby letters of credit...

  • Page 186
    ... Consumer Lending Brokerage and Asset Management Special Asset Pool Subtotal Citi Holdings Corporate/Other Total Citigroup In millions of dollars Interest rate contracts (1) Foreign exchange contracts (2) Equity contracts (3) Commodity and other contracts (4) Credit derivatives (5) Total Citigroup...

  • Page 187
    ...payments pursuant to the 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...

  • Page 188
    ... treasury stock, and the recorded liability was reclassified to equity at that time. Generally, in order to reduce the use of shares under Citigroup's stockholder-approved stock incentive plan, the percentages of total annual incentives awarded pursuant to CAP in January 2009 and January 2010 were...

  • Page 189
    ... common stock with exercise prices that are no less 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 executive officers). Generally, options granted...

  • Page 190
    ... unless the market price on the date of exercise is at least 20% greater than the option to purchase. On February 14, 2011, Citigroup granted options exercisable for approximately 29 million shares of Citi common stock to certain of its executive officers. The options have six-year terms and vest...

  • Page 191
    ... on sale. Additional valuation and related assumption information for Citigroup option programs is presented below. Citigroup uses a lattice-type model to value stock options. For options granted during 2010 $ 2009 1.38 5.87 years N/A 35.89% 2.79% 0.02% 7.60% $ 2008 3.62 5.00 years 1.04 years 25...

  • Page 192
    ... correct inaccurate information) relating to financial statements or performance metrics, (c) materially violated any risk limits established by senior management and/or risk management, or any balance sheet or working capital guidance provided by a business head, or (d) is terminated on account of...

  • Page 193
    ... The 2009 curtailment loss in the non-U.S pension plans includes an $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 194
    ...year end Change in plan assets Plan assets at fair value at beginning of year Actual return on plan assets Company contributions (3) Employee contributions Divestitures Settlements Benefits paid Foreign exchange impact and other Plan assets at fair value at year end Funded status of the plan at year...

  • Page 195
    ... for the Company's plans are shown in the following table: At year end 2010 2009 The discount rates for the U.S. pension and postretirement plans were selected by reference to a Citigroup-specific analysis using each plan's specific cash flows and compared with high quality corporate bond indices...

  • Page 196
    ..., 2010, the Company lowered its expected rate of return to 7.5%. (2) Actual rates of return are presented gross of fees. Expected Rate of Return Citigroup determines its assumptions for the expected rate of return on plan assets for its U.S. pension and postretirement plans using a "building block...

  • Page 197
    ...in real estate are classified in the real estate asset category, not private equity. (2) Equity securities in the U.S. pension plans include no Citigroup common stock at the end of 2010 and 2009. Third-party investment managers and advisors, as well as affiliated advisors, provide their services to...

  • Page 198
    ... agency U.S. corporate bonds Non-U.S. government debt Non-U.S. corporate bonds State and municipal debt Hedge funds Asset-backed securities Mortgage-backed securities Annuity contracts Private equity Other investments (2) Total investments at fair value Cash and cash equivalents Total assets Level...

  • Page 199
    ... of dollars Asset categories Equity securities U.S. equity Non-U.S. equity Debt securities U.S. corporate bonds Non-U.S corporate bonds Hedge funds Annuity contracts Private equity Other investments Total assets In millions of dollars Beginning Level 3 market value at Dec. 31, 2009 $ 1 1 1 - 1,235...

  • Page 200
    ... to be paid directly 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...

  • Page 201
    ... 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 retained earnings...

  • Page 202
    ... 2010 2009 2008 Deferred tax assets Credit loss deduction Deferred compensation and employee benefits Restructuring and settlement reserves Unremitted foreign earnings Investment and loan basis differences Cash flow hedges Tax credit and net operating loss carryforwards Other deferred tax assets...

  • Page 203
    ... deferred tax assets at December 31, 2010 and December 31, 2009. In billions of dollars Jurisdiction/Component 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 204
    ... period. Under U.S. tax law, NOL carry-forwards must generally be used against taxable income before foreign tax credits (FTCs) or general business credits (GBCs) can be utilized. Regarding the estimate of future taxable income, the Company has projected its pretax earnings predominantly based upon...

  • Page 205
    ... Citigroup's net income (loss) Impact of the public and private preferred stock exchange offers Preferred dividends Impact of the conversion price reset related to the $12.5 billion convertible preferred stock private issuance Preferred stock Series H discount accretion Net income (loss) available...

  • Page 206
    ... principally by government and governmentagency securities and corporate debt and equity securities. The remaining portion is recorded at fair value as the Company elected the fair value option for certain securities borrowed and loaned portfolios. With respect to securities loaned, the Company...

  • Page 207
    ... assets and Trading account liabilities, at fair value, consisted of the following at December 31: In millions of dollars 2010 2009 Trading account assets Mortgage-backed securities (1) U.S. government-sponsored agency guaranteed Prime Alt-A Subprime Non-U.S. residential Commercial Total mortgage...

  • Page 208
    ...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 209
    ... Total Gross Fair unrealized losses value In millions of dollars December 31, 2010 Securities AFS 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 agency securities...

  • Page 210
    ...Includes corporate, asset-backed and other debt securities. The following table presents interest and dividends on investments: In millions of dollars 2010 $10,160 758 321 $11,239 2009 $11,970 864 285 $13,119 2008 $ 9,407 836 475 $10,718 Taxable interest Interest exempt from U.S. federal income...

  • Page 211
    ... impairment charges are not reported on the financial statements, except for HTM securities that have suffered credit impairment, for which declines in fair value for reasons other than credit losses are recorded in AOCI. (3) The Company invests in mortgage-backed and asset-backed securities. These...

  • Page 212
    ... all of these unrealized losses relate to securities that have been in a loss position for 12 months or longer at both December 31, 2010 and December 31, 2009. The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates as of December 31...

  • Page 213
    .... For those securities that the Company does not intend to sell or expect to be required to sell, credit-related impairment is recognized in earnings, with the non-creditrelated impairment recorded in AOCI. An unrealized loss exists when the current fair value of an individual security is less than...

  • Page 214
    ...12 months ended December 31, 2010: OTTI on Investments In millions of dollars Year ended December 31, 2010 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 during the year ended December...

  • Page 215
    ...2009 balance December 31, 2010 balance AFS debt securities Mortgage-backed securities Prime Alt-A Commercial real estate Total mortgage-backed securities State and municipal U.S. Treasury Foreign government Corporate Asset-backed securities Other debt securities Total OTTI credit losses recognized...

  • Page 216
    ...Company holds investments in certain alternative investment funds that calculate net asset value (NAV) per share, including hedge funds, private equity funds, fund of funds and real estate funds. The Company's investments include co-investments in funds that are managed by the Company and Fair value...

  • Page 217
    ... Consumer Banking and Local Consumer Lending businesses. The following table provides information by loan type: In millions of dollars at year end 2010 2009 Consumer loans In U.S. offices Mortgage and real estate (1) Installment, revolving credit, and other Cards (2) Commercial and industrial...

  • Page 218
    ... student loans which are insured by U.S. government agencies under the Federal Family Education Loan Program. Loans less than 30 days past due are considered current. Includes $1.7 billion of first mortgage loans recorded at fair value. Fixed rate home equity loans and loans extended under home...

  • Page 219
    ...income recognized $ 862 40 131 393 26 $ 1,452 Mortgage and real estate First mortgages Home equity loans Credit cards Installment and other Individual installment and other Commercial market loans Total (5) 2,453 3,853 $16,935 At and for the period ended In millions of dollars Dec. 31, 2009 $14...

  • Page 220
    ...ICG or the Special Asset Pool. The following table presents information by corporate loan type: In millions of dollars at year end 2010 2009 Corporate In U.S. offices Commercial and industrial Loans to financial institutions (1) Mortgage and real estate (2) Installment, revolving credit and other...

  • Page 221
    ... Mortgage and real estate Leases Other Non-accrual Commercial and industrial Financial institutions Mortgage and real estate Leases Other Total non-investment grade Private Banking loans managed on a delinquency basis (2) Loans at fair value Corporate loans, net of unearned income Corporate loans...

  • Page 222
    ... recognized $ 28 1 7 4 25 $ 65 Dec. 31, 2009 Recorded investment (1) $ 6,347 1,794 4,051 - 1,287 $13,479 In millions of dollars Non-accrual Corporate loans Commercial and industrial Loans to financial institutions Mortgage and real estate Lease financing Other Total non-accrual Corporate loans...

  • Page 223
    ... reported in the column "Carrying amount of loan receivable" consists of $130 million of purchased loans accounted for under the level-yield method and $0 under the cost-recovery method. These balances represent the fair value of these loans at their acquisition date. The related total expected...

  • Page 224
    .... 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 related to the transfer of the U.K. cards portfolio...

  • Page 225
    ... as purchase accounting adjustments. Goodwill impairment testing is performed at a level below the business segments (referred to as a reporting unit). The reporting unit structure in 2010 is consistent with those reporting units identified in the second quarter of 2009 as a result of the change in...

  • Page 226
    ...management's most recent projections available as of the testing date, giving consideration to targeted equity capital requirements based on selected public guideline companies for the reporting unit. In arriving at the terminal value for Local Consumer Lending-Cards, using 2013 as the terminal year...

  • Page 227
    ...of dollars Purchased credit card relationships 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...

  • Page 228
    ..., 2009, collateralized advances from the Federal Home Loan Bank were $10 billion and $23 billion, respectively. (2) December 31, 2010 includes $25.3 billion of short-term borrowings related to VIEs consolidated effective January 1, 2010 with the adoption of SFAS 167. Citigroup parent company Senior...

  • Page 229
    ... fixed rate debt. The maturity structure of the derivatives generally corresponds to the maturity structure of the debt being hedged. In addition, the Company uses other derivative contracts to manage the foreign exchange impact of certain debt issuances. At December 31, 2010, the Company's overall...

  • Page 230
    The following table summarizes the financial structure of each of the Company's subsidiary trusts at December 31, 2010: 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...

  • Page 231
    ... its effect on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies that indicate that banking organizations should generally pay dividends out of current operating earnings. Citigroup did not receive any dividends from its...

  • Page 232
    ... the difference between the fair value of the plan assets and the projected benefit obligation. See Note 15 to the Consolidated Financial Statements for details of the unrealized gains and losses on Citigroup's available-for-sale and held-to-maturity securities and the net gains (losses) included in...

  • Page 233
    ... many cases, a detailed quantitative analysis was required to make this determination. 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...

  • Page 234
    ... tender option bond trusts (TOBs) Municipal investments Client intermediation Investment funds Trust preferred securities Other Total Citi Holdings Credit card securitizations Mortgage securitizations (6) U.S. agency-sponsored Non-agency-sponsored Student loan securitizations Citi-administered asset...

  • Page 235
    In millions of dollars As of December 31, 2009 Total involvement with SPE assets $ 78,833 264,949 QSPE assets $ 78,833 264,949 Consolidated VIE assets $ - - Significant unconsolidated VIE assets (1) $ - - Maximum exposure to loss in significant unconsolidated VIEs (2) $ - - 36,327 3,718 2,785...

  • Page 236
    ...from the requirements of SFAS 167 where the Company is the general partner and the limited partners have the right to 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...

  • Page 237
    ... securities tender option bond trusts (TOBs) Municipal investments Investment funds Other Total Citicorp Citi Holdings Third-party commercial paper conduits Collateralized loan obligations (CLOs) Asset-based financing Municipal investments Investment funds Other Total Citi Holdings Total Citigroup...

  • Page 238
    ...provided a guarantee to the investors or is the counterparty to certain derivative transactions involving the VIE. In addition, the assets are generally restricted only to pay such liabilities. In billions of dollars Thus, the Company's maximum legal exposure to loss related to consolidated VIEs is...

  • Page 239
    ... from securitization was recognized in 2010, since the transfer of credit card receivables to the trust did not meet the criteria for sale accounting. In the years ended December 31, 2009 and 2008, the Company recorded net gains (losses) from securitization of Citicorp's credit card receivables of...

  • Page 240
    ... 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 presentations are non-GAAP financial measures. Managed presentations...

  • Page 241
    ..., for the years ended December 31, On balance sheet Securitized amounts Total managed credit losses Term notes issued to multi-seller CP conduits Term notes issued to third parties Term notes retained by Citigroup affiliates Commercial paper Total Master Trust liabilities 2010 $7,230 - $7,230...

  • Page 242
    ... trusts and also provides servicing for a limited number of Securities and Banking securitizations. Securities and Banking and Special Asset Pool do not retain servicing for their mortgage securitizations. The Company securitizes mortgage loans generally through either a government-sponsored agency...

  • Page 243
    ... 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, 2010 and 2009 are as follows: December 31, 2010 U.S. agencysponsored mortgages Discount rate Constant prepayment rate Anticipated net credit losses...

  • Page 244
    ... from new securitizations Contractual servicing fees received Cash flows received on retained interests and other net cash flows The Company did not recognize gains (losses) on the securitization of U.S. agency- and non-agency-sponsored mortgages in the years ended December 31, 2010 and 2009. There...

  • Page 245
    ... financing facilities to clients and are funded by issuing commercial paper to third-party investors. The conduits generally do not purchase assets originated by the Company. The funding of the conduits is facilitated by the liquidity support and credit enhancements provided by the Company. 2010...

  • Page 246
    ... a credit rating of A or above, based on the Company's internal risk ratings. Substantially all of the funding of the conduits is in the form of shortterm commercial paper, with a weighted average life generally ranging from 30 to 60 days. As of December 31, 2010 and December 31, 2009, the...

  • Page 247
    ...of notes. The Company's continuing involvement in cash CDOs is typically limited to investing in a portion of the notes or loans issued by the CDO and making a market in those securities, and acting as derivative counterparty for interest rate or foreign currency swaps used in the structuring of the...

  • Page 248
    ... entity's financial results because of their limited role in making day-to-day decisions and their limited ability to remove the third-party asset manager. Because one or both of the above conditions will generally be met, we have assumed that, even where a CDO vehicle issued preferred shares, the...

  • Page 249
    ... Total The effect of two negative changes in discount rates used to determine the fair value of retained interests is disclosed below. In millions of dollars The following table summarizes selected cash flow information related to asset-based financings for the years ended December 31, 2010, 2009...

  • Page 250
    ... funds, because the Company holds controlling financial interests in the hedge funds. Certain of the Company's equity investments in the hedge funds are hedged with derivatives transactions executed by the Company with third parties referencing the returns of the hedge fund. The Company's accounting...

  • Page 251
    ... business trust and owns all of the voting equity shares of the trust. The trust issues preferred equity securities to third-party investors and invests the gross proceeds in junior subordinated deferrable interest debentures issued by the Company. These trusts have no assets, operations, revenues...

  • Page 252
    ... into these derivative contracts relating to interest rate, foreign currency, commodity, and other market/credit risks for the following reasons: •฀ Trading Purposes-Customer Needs: Citigroup offers its customers derivatives in connection with their risk-management actions to transfer, modify or...

  • Page 253
    ...foreign exchange contract notionals Equity contracts Swaps Futures and forwards Written options Purchased options Total equity contract notionals Commodity and other contracts Swaps Futures and forwards Written options Purchased options Total commodity and other contract notionals Credit derivatives...

  • Page 254
    ... trading derivatives fair values are presented in Note 14 to the Consolidated Financial Statements. (2) The credit derivatives trading assets are composed of $68,558 million related to protection purchased and $24,234 million related to protection sold as of December 31, 2009. The credit derivatives...

  • Page 255
    ... Financial Statements. The amounts recognized in Other revenue in the Consolidated Statement of Income for the years ended December 31, 2010 and December 31, 2009 related to derivatives not designated in a qualifying hedging relationship and not recorded in Trading account assets or Trading account...

  • Page 256
    ... instrument employed is a forward foreign-exchange contract. In this type of hedge, the change in fair value of the hedged available-for-sale security attributable to the portion of foreign exchange risk hedged is reported in earnings and not Accumulated other comprehensive income-a process that...

  • Page 257
    ... are foreign exchange cross-currency swaps and forward contracts. These cash flow hedge relationships use dollar-offset ratio analysis to determine whether the hedging relationships are highly effective at inception and on an ongoing basis. Hedging total return Citigroup generally manages the risk...

  • Page 258
    ... a Net Investment Hedge." According to that method, all changes in fair value, including changes related to the forward-rate component of the foreign currency forward contracts and the time value of foreign currency options, are recorded in the foreign currency translation adjustment account within...

  • Page 259
    ... of the related total return swap agreement between the protection seller and the protection buyer. A credit option is a credit derivative that allows investors to trade or hedge changes in the credit quality of the reference asset. For example, in a credit spread option, the option writer assumes...

  • Page 260
    ...by the existing derivative contracts, are primarily downgrades in the credit ratings of the Company and its affiliates. The fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position at December 31, 2010 and December 31, 2009 is $25 billion...

  • Page 261
    ...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 values...

  • Page 262
    ... 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-traded equity securities. For bonds and secondary market loans traded...

  • Page 263
    ... Company. Citigroup intends to use trader marks to value this portion of the portfolio going forward so long as it remains largely hedged. For most of the lending and structuring direct subprime exposures, fair value is determined utilizing observable transactions where available, other market data...

  • Page 264
    ... had a short maturity period (7, 28 and 35 days). This generally resulted in valuations at par. Once the auctions failed, ARS could no longer be valued using observation of auction market prices. Accordingly, the fair values of ARS are currently estimated using internally developed discounted cash...

  • Page 265
    ... commercial real estate loans or commercial real estate directly is determined using a similar methodology to that used for other non-public investments in real estate held by the S&B business. The Company uses an established process for determining the fair value of such securities, using commonly...

  • Page 266
    ... contracts Commodity contracts Credit derivatives Total gross derivatives Cash collateral paid Netting agreements and market value adjustments Total derivatives Investments Mortgage-backed securities U.S. government-sponsored agency guaranteed Prime Alt-A Subprime Non-U.S. residential Commercial...

  • Page 267
    ... deposits Federal funds purchased and securities loaned or sold under agreements to repurchase Trading account liabilities Securities sold, not yet purchased Derivatives Interest rate contracts Foreign exchange contracts Equity contracts Commodity contracts Credit derivatives Total gross derivatives...

  • Page 268
    ...on a recurring basis Total assets Total as a percentage of gross assets (3) Liabilities Interest-bearing deposits Federal funds purchased and securities loaned or sold under agreements to repurchase Trading account liabilities Securities sold, not yet purchased Derivatives Short-term borrowings Long...

  • Page 269
    ... rate contracts Foreign exchange contracts Equity contracts Commodity and other contracts Credit derivatives Total derivatives, net (4) Investments Mortgage-backed securities U.S. government-sponsored agency guaranteed Prime Alt-A Subprime Commercial Total investment mortgage-backed debt securities...

  • Page 270
    ...losses) included in Principal transactions Other (1)(2) December 31, 2009 Assets Trading securities Trading mortgage-backed securities U.S. government-sponsored agency guaranteed Prime Alt-A Subprime Non-U.S. residential Commercial Total trading mortgage-backed securities U.S. Treasury and federal...

  • Page 271
    ... municipal Foreign government Corporate Equity securities Other debt securities Non-marketable equity securities Total investments Loans Mortgage servicing rights Other financial assets measured on a recurring basis Liabilities Interest-bearing deposits Federal funds purchased and securities loaned...

  • Page 272
    ... using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan. The following table presents all loans held-for-sale that are carried at LOCOM as of December 31, 2010 and 2009: In billions of dollars Aggregate cost $3.1 $2.5 Fair value $2.5 $1.6 Level...

  • Page 273
    ... Trading account assets Investments Loans Certain Corporate loans (3) Certain Consumer loans (3) Total loans Other assets MSRs Certain mortgage loans (HFS) Certain equity method investments Total other assets Total assets Liabilities Interest-bearing deposits Federal funds purchased and securities...

  • Page 274
    ... in fair value resulting from changes in instrument-specific credit risk were estimated by incorporating the Company's current observable credit spreads into the relevant valuation technique used to value each liability as described above. The Fair Value Option for Financial Assets and Financial...

  • Page 275
    ... of the credit products. The changes in fair value for the years ended December 31, 2010 and 2009 due to instrument-specific credit risk totaled to a loss of $6 million and a gain of $5.9 billion, respectively. Certain investments in private equity and real estate ventures and certain equity method...

  • Page 276
    ... 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, 2010 and 2009 due to instrument-specific credit risk resulted in a loss of $1 million and $4 million, respectively. Related...

  • Page 277
    ... structured interest rates, inflation, currency, equity, referenced credit or commodity risks (structured liabilities). The Company elected the fair value option, because these exposures are considered to be trading-related positions and, therefore, are managed on a fair value basis. These positions...

  • Page 278
    ...December 31, Carrying value $318.2 2010 Estimated fair value $319.0 Carrying value $306.1 2009 Estimated fair value $307.6 Assets Investments Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Loans (1) Other financial assets (2) 246.7 317...

  • Page 279
    ...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 280
    ... to clearing houses, and also support options and purchases of securities or are in lieu of escrow deposit accounts. Financial standbys also backstop loans, credit facilities, promissory notes and trade acceptances. Performance guarantees Performance guarantees and letters of credit are issued to...

  • Page 281
    ... issued by the bank to guarantee that a securities lending customer will be made whole in the event that the security borrower does not return the security subject to the lending agreement and collateral held is insufficient to cover the market value of the security. Credit card merchant processing...

  • Page 282
    ... above. Value-Transfer Networks 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...

  • Page 283
    ... 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, 2009 Maximum potential amount of future payments Investment Non-investment Not grade grade rated Total $49...

  • Page 284
    ... and similar letters of credit One- to four-family residential mortgages Revolving open-end loans secured by one- to four-family residential properties Commercial real estate, construction and land development Credit card lines Commercial and other Consumer loan commitments Total $722,012 $222...

  • Page 285
    .... Certain affiliates and subsidiaries of Citigroup are banks, registered broker-dealers, futures commission merchants, investment advisers or other regulated entities and, in those capacities, are subject to regulation by various U.S., state and foreign securities, banking, commodity futures and...

  • Page 286
    ...the Federal Housing Finance Agency, state attorneys general, the Department of Justice and subdivisions thereof, bank regulators, and other government agencies and authorities, in connection with various formal and informal inquiries concerning Citigroup's subprime and other mortgage-related conduct...

  • Page 287
    .... Additional information relating to this action is publicly available in court filings under the consolidated lead docket number 08 Civ. 9522 (S.D.N.Y.) (Stein, J.). Several institutions and sophisticated investors that purchased debt and equity securities issued by Citigroup and related issuers...

  • Page 288
    ... in July 2010, several investors, including Cambridge Place Investment Management, The Charles Schwab Corporation, the Federal Home Loan Bank of Chicago, the Federal Home Loan Bank of Indianapolis, and Allstate Insurance Company and affiliated entities, have filed lawsuits against Citigroup and...

  • Page 289
    ... Citigroup and Related Parties, 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 AND MERCHANT DISCOUNT...

  • Page 290
    ... 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 291
    30. CITIBANK, N.A. STOCKHOLDER'S EQUITY Statement of Changes in Stockholder's Equity In millions of dollars, except shares 2010 $ $ 751 751 Year ended December 31 2009 2008 $ $ 751 751 $ $ 751 751 Common stock ($20 par value) Balance, beginning of year-shares: 37,534,553 in 2010, 2009 and 2008 ...

  • Page 292
    ... reported on its Consolidated Balance Sheet within Investments as non-marketable equity securities carried at fair value. The acquisition will not result in a significant income statement impact for Citi in the first quarter of 2011. 32. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS SCHEDULES These...

  • Page 293
    Condensed Consolidating Statements of Income Year ended December 31, 2010 Other Citigroup subsidiaries, eliminations and income from discontinued operations $ - 67,166 (8,510) 11,488 (3,885) $51,053 $ 8,845 (267) 708 4,196 10,306 (1,579) $22,209 $73,262 $23,509 $18,133 (346) 19,...

  • Page 294
    Condensed Consolidating Statements of Income Year ended December 31, 2009 Other Citigroup subsidiaries, eliminations and income from discontinued operations $ - 61,839 (9,746) 13,495 (4,027) $ 42,625 $ 9,412 (887) 7,879 (3,071) (659) 3,687 $ 16,361 $ 58,986 $ 35,779 $ 17,811 (618) 18,568 (1,...

  • Page 295
    Condensed Consolidating Statements of Income Year ended December 31, 2008 Other Citigroup subsidiaries, eliminations and income from discontinued operations $ - 78,908 (12,662) 27,786 (7,200) $ 45,660 $ 5,313 (573) (6,810) 2,449 12,071 (9,412) $ 3,038 $ 48,698 $ 29,313 $ 20,689 (1,110) 32,...

  • Page 296
    ... assets Other assets-intercompany Total assets Liabilities 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...

  • Page 297
    ... assets Other assets-intercompany Total assets Liabilities 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...

  • Page 298
    ... in short-term borrowings and other investment banking and brokerage borrowings- third-party Net change in short-term borrowings and other advances-intercompany Other financing activities Net cash (used in) provided by financing activities of continuing operations Effect of exchange rate changes on...

  • Page 299
    ... in short-term borrowings and other investment banking and brokerage borrowings- third-party Net change in short-term borrowings and other advances-intercompany Other financing activities Net cash provided by (used in) financing activities of continuing operations Effect of exchange rate changes on...

  • Page 300
    ... in short-term borrowings and other investment banking and brokerage borrowings -third-party Net change in short-term borrowings and other advances-intercompany Other financing activities Net cash provided by (used in) financing activities of continuing operations Effect of exchange rate changes on...

  • Page 301
    ...to the Company's results of operations and financial position for any previously reported period. Consequently, in the accompanying selected quarterly financial data, the cumulative effect through September 30, 2009 is recorded in the fourth quarter of 2009. (2) Due to averaging of shares, quarterly...

  • Page 302
    FINANCIAL DATA SUPPLEMENT (Unaudited) RATIOS 2010 Citigroup's net income (loss) to average assets Return on common stockholders' equity (1) Return on total stockholders' equity (2) Total average equity to average assets Dividends payout ratio (3) 0.53% 6.8 6.8 7.8 NM 2009 (0.08)% (9.4) (1.1) 7.64 NM...

  • Page 303
    ... with these rules could limit those operations of CGMI that require the intensive use of capital, such as underwriting and trading activities and the financing of customer account balances, and also limits the ability of broker-dealers to transfer large amounts of capital to parent companies and...

  • Page 304
    ... unions, credit card issuers, mortgage banking companies, trust companies, investment banking companies, brokerage firms, investment advisory companies, hedge funds, private equity funds, securities processing companies, mutual fund companies, insurance companies, automobile financing companies, and...

  • Page 305
    ... Consolidated Financial Statements. UNREGISTERED SALES OF EQUITY; PURCHASES OF EQUITY SECURITIES; DIVIDENDS Unregistered Sales of Equity Securities None. Share Repurchases Under its long-standing repurchase program, Citigroup may buy back common shares in the market or otherwise from time to time...

  • Page 306
    ... common stock during 2009 and 2010, see Note 33 to the Consolidated Financial Statements. For so long as the U.S. government holds any Citigroup trust preferred securities acquired pursuant to the exchange offers consummated in 2009, Citigroup has agreed not to pay a quarterly common stock dividend...

  • Page 307
    ... Chief Risk Officer CEO, Citibank, N.A. CEO, Consumer Banking for the Americas; Chairman of the Global Consumer Council; Chairman and CEO, Latin America and Mexico CEO, Europe, Middle East and Africa Chief Executive Officer CEO, Europe, Middle East and Africa Controller and Chief Accounting Officer...

  • Page 308
    ..." 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 309
    ... Financial Officer Pursuant to the requirements 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 25th day of February, 2011. Citigroup's Principal Executive Officer and a Director...

  • Page 310
    ... Investment Management Company (PIMCO) Ernesto Zedillo Professor of Finance Emeritus and Former Dean Stanford University Graduate School of Business Chairman Citigroup Inc.; and Special Advisor Providence Equity Partners Inc. Former President Federal Reserve Bank of Philadelphia Director, Center...

  • Page 311
    ... Paper North America with 10% PCW and FSC Chain of Custody Certification. 100% of the electricity used to manufacture McCoy is Green-e® certified renewable energy. The financial section of this annual report is printed on FSC certified Accent® Opaque, from International Paper. International Paper...

  • Page 312
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