Citibank 2012 Annual Report Download - page 249

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Funding Commitments for Significant Unconsolidated VIEs—Liquidity Facilities and Loan Commitments
The following table presents the notional amount of liquidity facilities and loan commitments that are classified as funding commitments in the VIE tables
above as of December 31, 2012:
In millions of dollars Liquidity facilities Loan commitments
Citicorp
Citi-administered asset-backed commercial paper conduits (ABCP) $ 7,615 $ —
Asset-based financing 6 2,075
Municipal securities tender option bond trusts (TOBs) 4,628 —
Municipal investments — 1,669
Other — 22
Total Citicorp $12,249 $ 3,766
Citi Holdings
Asset-based financing $ — $ 243
Collateralized loan obligations (CLOs) 13 —
Municipal investments — 992
Total Citi Holdings $ 13 $ 1,235
Total Citigroup funding commitments $12,262 $ 5,001
Citicorp and Citi Holdings Consolidated VIEs
The Company engages in on-balance-sheet securitizations which are
securitizations that do not qualify for sales treatment; thus, the assets remain
on the Company’s balance sheet. The consolidated VIEs included in the
tables below represent hundreds of separate entities with which the Company
is involved. In general, the third-party investors in the obligations of
consolidated VIEs have legal recourse only to the assets of the VIEs and do not
have such recourse to the Company, except where the Company has 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.
Thus, the Company’s maximum legal exposure to loss related to
consolidated VIEs is significantly less than the carrying value of the
consolidated VIE assets due to outstanding third-party financing.
Intercompany assets and liabilities are excluded from the table. All assets are
restricted from being sold or pledged as collateral. The cash flows from these
assets are the only source used to pay down the associated liabilities, which
are non-recourse to the Company’s general assets.
The following table presents the carrying amounts and classifications
of consolidated assets that are collateral for consolidated VIE and SPE
obligations as of December 31, 2012 and December 31, 2011:
In billions of dollars December 31, 2012 December 31, 2011
Citicorp Citi Holdings Citigroup Citicorp Citi Holdings Citigroup
Cash $ 0.3 $ 0.2 $ 0.5 $ 0.2 $ 0.4 $ 0.6
Trading account assets 0.5 — 0.5 0.4 0.1 0.5
Investments 10.7 — 10.7 12.5 — 12.5
Total loans, net 102.6 9.1 111.7 109.0 10.1 119.1
Other 0.5 0.2 0.7 0.5 0.3 0.8
Total assets $114.6 $ 9.5 $ 124.1 $ 122.6 $10.9 $ 133.5
Short-term borrowings $ 17.9 $ — $ 17.9 $ 22.5 $ 0.8 $ 23.3
Long-term debt 23.8 2.6 26.4 44.8 5.6 50.4
Other liabilities 1.1 0.1 1.2 0.9 0.2 1.1
Total liabilities $ 42.8 $ 2.7 $ 45.5 $ 68.2 $ 6.6 $ 74.8