Citibank 2010 Annual Report Download - page 229

227
CGMHI has committed long-term financing facilities with unaffiliated
banks. At December 31, 2010, CGMHI had drawn down the full $900 million
available under these facilities, of which $150 million is guaranteed by
Citigroup. Generally, a bank can terminate these facilities by giving CGMHI
one-year prior notice.
The Company issues both fixed and variable rate debt in a range of
currencies. It uses derivative contracts, primarily interest rate swaps, to
effectively convert a portion of its fixed rate debt to variable rate debt and
variable rate debt to 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 weighted average interest rate for long-term debt
was 3.53% on a contractual basis and 2.78% including the effects of
derivative contracts.
Aggregate annual maturities of long-term debt obligations (based on final maturity dates) including trust preferred securities are as follows:
Long-term debt at December 31, 2010 and December 31, 2009 includes
$18,131 million and $19,345 million, respectively, of junior subordinated
debt. The Company formed statutory business trusts under the laws of the
State of Delaware. The trusts exist for the exclusive purposes of (i) issuing
trust securities representing undivided beneficial interests in the assets of
the trust; (ii) investing the gross proceeds of the trust securities in junior
subordinated deferrable interest debentures (subordinated debentures) of
its parent; and (iii) engaging in only those activities necessary or incidental
thereto. Upon approval from the Federal Reserve, Citigroup has the right to
redeem these securities.
Citigroup has contractually agreed not to redeem or purchase (i) the
6.50% Enhanced Trust Preferred securities of Citigroup Capital XV before
September 15, 2056, (ii) the 6.45% Enhanced Trust Preferred securities of
Citigroup Capital XVI before December 31, 2046, (iii) the 6.35% Enhanced
Trust Preferred securities of Citigroup Capital XVII before March 15, 2057,
(iv) the 6.829% Fixed Rate/Floating Rate Enhanced Trust Preferred securities
of Citigroup Capital XVIII before June 28, 2047, (v) the 7.250% Enhanced
Trust Preferred securities of Citigroup Capital XIX before August 15, 2047,
(vi) the 7.875% Enhanced Trust Preferred securities of Citigroup Capital XX
before December 15, 2067, and (vii) the 8.300% Fixed Rate/Floating
Rate Enhanced Trust Preferred securities of Citigroup Capital XXI before
December 21, 2067, unless certain conditions, described in Exhibit 4.03
to Citigroup’s Current Report on Form 8-K filed on September 18, 2006,
in Exhibit 4.02 to Citigroup’s Current Report on Form 8-K filed on
November 28, 2006, in Exhibit 4.02 to Citigroup’s Current Report on Form
8-K filed on March 8, 2007, in Exhibit 4.02 to Citigroup’s Current Report
on Form 8-K filed on July 2, 2007, in Exhibit 4.02 to Citigroup’s Current
Report on Form 8-K filed on August 17, 2007, in Exhibit 4.2 to Citigroup’s
Current Report on Form 8-K filed on November 27, 2007, and in Exhibit
4.2 to Citigroup’s Current Report on Form 8-K filed on December 21, 2007,
respectively, are met. These agreements are for the benefit of the holders of
Citigroup’s 6.00% junior subordinated deferrable interest debentures due
2034. Citigroup owns all of the voting securities of these subsidiary trusts.
These subsidiary trusts have no assets, operations, revenues or cash flows
other than those related to the issuance, administration, and repayment of
the subsidiary trusts and the subsidiary trusts’ common securities. These
subsidiary trusts’ obligations are fully and unconditionally guaranteed by
Citigroup.
In millions of dollars 2011 2012 2013 2014 2015 Thereafter
Bank $35,066 $38,280 $ 8,013 $ 7,620 $ 6,380 $ 17,875
Non-bank 15,213 25,950 7,858 5,187 3,416 18,381
Parent company 21,194 30,004 21,348 19,096 12,131 88,171
Total $71,473 $94,234 $37,219 $31,903 $21,927 $124,427