Citibank 2011 Annual Report Download - page 180

158
7. PRINCIPAL TRANSACTIONS
Principal transactions revenue consists of realized and unrealized gains
and losses from trading activities. Trading activities include revenues from
fixed income, equities, credit and commodities products, as well as foreign
exchange transactions. Not included in the table below is the impact of
net interest revenue related to trading activities, which is an integral part
of trading activities’ profitability. See Note 5 to the Consolidated Financial
Statements for information about net interest revenue related to trading
activity. The following table presents principal transactions revenue for the
years ended December 31:
In millions of dollars 2011  
Global Consumer Banking $ 716    
Institutional Clients Group 4,873  
3UBTOTALæ#ITICORP $5,589   
Local Consumer Lending (102)  
Brokerage and Asset Management (11)  
Special Asset Pool 1,713  
3UBTOTALæ#ITIæ(OLDINGS $1,600  
#ORPORATE/THER 45  
Total Citigroup $7,234   
In millions of dollars 2011  
)NTERESTæRATEæCONTRACTSæ $5,136   
&OREIGNæEXCHANGEæCONTRACTSæ 2,309  
%QUITYæCONTRACTSæ 3 
#OMMODITYæANDæOTHERæCONTRACTSæ 76  
#REDITæDERIVATIVESæ (290)  
Total Citigroup $7,234   
æ )NCLUDESæREVENUESæFROMæGOVERNMENTæSECURITIESæANDæCORPORATEæDEBTæMUNICIPALæSECURITIESæPREFERREDæ
STOCKæMORTGAGEæSECURITIESæANDæOTHERæDEBTæINSTRUMENTSæ!LSOæINCLUDESæSPOTæANDæFORWARDæTRADINGæOFæ
CURRENCIESæANDæEXCHANGETRADEDæANDæOVERTHECOUNTERæ/4#æCURRENCYæOPTIONSæOPTIONSæONæFIXEDæ
INCOMEæSECURITIESæINTERESTæRATEæSWAPSæCURRENCYæSWAPSæSWAPæOPTIONSæCAPSæANDæFLOORSæFINANCIALæ
FUTURESæ/4#æOPTIONSæANDæFORWARDæCONTRACTSæONæFIXEDæINCOMEæSECURITIES
æ )NCLUDESæREVENUESæFROMæFOREIGNæEXCHANGEæSPOTæFORWARDæOPTIONæANDæSWAPæCONTRACTSæASæWELLæASæ
TRANSLATIONæGAINSæANDæLOSSES
æ )NCLUDESæREVENUESæFROMæCOMMONæPREFERREDæANDæCONVERTIBLEæPREFERREDæSTOCKæCONVERTIBLEæCORPORATEæ
DEBTæEQUITYLINKEDæNOTESæANDæEXCHANGETRADEDæANDæ/4#æEQUITYæOPTIONSæANDæWARRANTS
æ 0RIMARILYæINCLUDESæREVENUESæFROMæCRUDEæOILæREFINEDæOILæPRODUCTSæNATURALæGASæANDæOTHERæCOMMODITIESæTRADES
æ )NCLUDESæREVENUESæFROMæSTRUCTUREDæCREDITæPRODUCTS
8. INCENTIVE PLANS
The Company administers award programs involving grants of stock
options, restricted or deferred stock awards, and stock payments. The award
programs are used to attract, retain and motivate officers, employees and
non-employee directors, to provide incentives for their contributions to the
long-term performance and growth of the Company, and to align their
interests with those of stockholders. These programs are administered by the
Personnel and Compensation Committee of the Citigroup Board of Directors
(the Committee), which is composed entirely of independent non-employee
directors. All grants of equity awards since April 19, 2005 have been made
pursuant to stockholder-approved stock incentive plans.
At December 31, 2011, approximately 77.5 million shares were authorized
and available for grant under Citigroup’s 2009 Stock Incentive Plan, the only
plan from which equity awards are currently granted.
The 2009 Stock Incentive Plan and predecessor plans permit the use of
treasury stock or newly issued shares in connection with awards granted
under the plans. Until recently, Citigroup’s practice was to deliver shares
from treasury stock upon the exercise or vesting of equity awards. However,
newly issued shares were issued as stock payments in April 2010 (to settle
“common stock equivalent” awards granted in January 2010), in January
2011 (as current stock payments in lieu of cash bonuses) and in January
2012 (to settle the vesting of deferred stock awards granted in prior years).
The new issuances in April 2010 and January 2011 were specifically intended
to increase the Company’s equity capital. Restricted stock awards that vested
in January 2012 were settled with shares that were previously issued out of
treasury. There is no income statement impact from treasury stock issuances
and issuances of new shares.
The following table shows components of compensation expense relating to
the Company’s stock-based compensation programs as recorded during 2011,
2010 and 2009:
In millions of dollars 2011  
#HARGESæFORæESTIMATEDæAWARDSæTOææ
RETIREMENTæELIGIBLEæEMPLOYEES $ 338    
/PTIONæEXPENSE 161  
!MORTIZATIONæOFæDEFERREDæCASHæAWARDSæANDææ
DEFERREDæCASHæSTOCKæUNITS 208  
!MORTIZATIONæOFæ-#æ,4)0æAWARDSæ —
3ALARYæSTOCKæAWARDæEXPENSE — 
)MMEDIATELYæVESTEDæSTOCKæAWARDæEXPENSEæ 52  
!MORTIZATIONæOFæRESTRICTEDæANDæDEFERREDææ
STOCKæAWARDSæ 871  
Total $1,630  
æ -ANAGEMENTæ#OMMITTEEæ,ONG4ERMæ)NCENTIVEæ0LANæ-#æ,4)0æAWARDSæWEREæGRANTEDæINææ4HEæ
AWARDSæEXPIREDæINæ$ECEMBERææWITHOUTæTHEæISSUANCEæOFæSHARES
æ 4HISæREPRESENTSæEXPENSEæFORæIMMEDIATELYæVESTEDæSTOCKæAWARDSæTHATæGENERALLYæWEREæSTOCKæPAYMENTSæ
INæLIEUæOFæCASHæCOMPENSATIONæ4HEæEXPENSEæISæGENERALLYæACCRUEDæFORæASæCASHæINCENTIVEæCOMPENSATIONæ
INæTHEæYEARæPRIORæTOæGRANTæ4HEææAMOUNTæISæFORæTHEæhCOMMONæSTOCKæEQUIVALENTvæAWARDSæWHICHæAREæ
DESCRIBEDæINæMOREæDETAILæBELOW
æ !LLæPERIODSæINCLUDEæAMORTIZATIONæEXPENSEæFORæALLæUNVESTEDæAWARDSæTOæNONRETIREMENTELIGIBLEæEMPLOYEESæ
!MORTIZATIONæISæRECOGNIZEDæNETæOFæESTIMATEDæFORFEITURESæOFæAWARDS