Citibank 2011 Annual Report Download - page 283

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28. PLEDGED ASSETS, COLLATERAL, COMMITMENTS
AND GUARANTEES
Pledged Assets
In connection with the Company’s financing and trading activities, the
Company has pledged assets to collateralize its obligations under repurchase
agreements, securities financing agreements, secured liabilities of consolidated
VIEs and other borrowings. At December 31, 2011 and 2010, the approximate
carrying values of the significant components of pledged assets recognized on
the Company’s balance sheet include:
In millions of dollars 2011 
)NVESTMENTæSECURITIES $129,093 
,OANS 235,031 
4RADINGæACCOUNTæASSETS 114,539 
Total $478,663 
In addition, included in cash and due from banks at December 31, 2011
and 2010 are $13.6 billion and $15.6 billion, respectively, of cash segregated
under federal and other brokerage regulations or deposited with clearing
organizations.
At December 31, 2011 and 2010, the Company had $1.4 billion and
$1.1 billion, respectively, of outstanding letters of credit from third-party
banks to satisfy various collateral and margin requirements.
Collateral
At December 31, 2011 and 2010, the approximate fair value of collateral
received by the Company that may be resold or repledged by the Company,
excluding the impact of allowable netting, was $350.0 billion and
$335.3 billion, respectively. This collateral was received in connection with
resale agreements, securities borrowings and loans, derivative transactions
and margined broker loans.
At December 31, 2011 and 2010, a substantial portion of the collateral
received by the Company had been sold or repledged in connection with
repurchase agreements, securities sold, not yet purchased, securities
borrowings and loans, pledges to clearing organizations, segregation
requirements under securities laws and regulations, derivative transactions
and bank loans.
In addition, at December 31, 2011 and 2010, the Company had pledged
$187 billion and $271 billion, respectively, of collateral that may not be sold
or repledged by the secured parties.
Lease Commitments
Rental expense (principally for offices and computer equipment) was
$1.6 billion, $1.6 billion and $2.0 billion for the years ended December 31,
2011, 2010 and 2009, respectively.
Future minimum annual rentals under noncancelable leases, net of
sublease income, are as follows:
In millions of dollars
 $ 1,199
 1,096
 1,008
 906
 793
4HEREAFTER 2,292
Total $ 7,294
Guarantees
The Company provides a variety of guarantees and indemnifications to
Citigroup customers to enhance their credit standing and enable them
to complete a wide variety of business transactions. For certain contracts
meeting the definition of a guarantee, the guarantor must recognize, at
inception, a liability for the fair value of obligation undertaken in issuing
the guarantee.
In addition, the guarantor must disclose the maximum potential
amount of future payments the guarantor could be required to make under
the guarantee, if there were a total default by the guaranteed parties. The
determination of the maximum potential future payments is based on
the notional amount of the guarantees without consideration of possible
recoveries under recourse provisions or from collateral held or pledged.
Such amounts bear no relationship to the anticipated losses, if any, on these
guarantees. The following tables present information about the Company’s
guarantees at December 31, 2011 and December 31, 2010:
Maximum potential amount of future payments
In billions of dollars at December 31, except carrying value in millions
Expire within
1 year
Expire after
1 year
Total amount
outstanding
Carrying value
(in millions)
2011
&INANCIALæSTANDBYæLETTERSæOFæCREDIT $ 25.2 $ 79.5 $ 104.7 $ 417.5
0ERFORMANCEæGUARANTEES 7.8 4.5 12.3 43.9
$ERIVATIVEæINSTRUMENTSæCONSIDEREDæTOæBEæGUARANTEES 11.1 10.2 21.3 2,569.7
,OANSæSOLDæWITHæRECOURSE — 0.4 0.4 89.6
3ECURITIESæLENDINGæINDEMNIFICATIONSæ 90.9 — 90.9 —
#REDITæCARDæMERCHANTæPROCESSINGæ 70.2 — 70.2 —
#USTODYæINDEMNIFICATIONSæANDæOTHER — 40.0 40.0 30.7
Total $ 205.2 $ 134.6 $ 339.8 $ 3,151.4
æ 4HEæCARRYINGæVALUESæOFæSECURITIESæLENDINGæINDEMNIFICATIONSæANDæCREDITæCARDæMERCHANTæPROCESSINGæAREæNOTæMATERIALæASæTHEæ#OMPANYæHASæDETERMINEDæTHATæTHEæAMOUNTæANDæPROBABILITYæOFæPOTENTIALæLIABILITIESæARISINGæFROMæTHESEæ
GUARANTEESæAREæNOTæSIGNIFICANT