Citibank 2012 Annual Report Download - page 250

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Citicorp and Citi Holdings Significant Variable Interests in Unconsolidated VIEs—Balance Sheet Classification
The following table presents the carrying amounts and classification of significant variable interests in unconsolidated VIEs 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
Trading account assets $ 4.0 $ 0.5 $ 4.5 $ 5.5 $1.0 $ 6.5
Investments 5.4 0.7 6.1 3.8 4.4 8.2
Total loans, net 14.6 0.9 15.5 9.0 1.6 10.6
Other 1.4 0.5 1.9 1.6 1.0 2.6
Total assets $25.4 $ 2.6 $28.0 $19.9 $8.0 $27.9
Long-term debt $ — $ — $ — $ — $ — $ —
Total liabilities — — — — — —
Credit Card Securitizations
The Company securitizes credit card receivables through trusts that are
established to purchase the receivables. Citigroup transfers receivables into
the trusts on a non-recourse basis. Credit card securitizations are revolving
securitizations; that is, as customers pay their credit card balances, the cash
proceeds are used to purchase new receivables and replenish the receivables in
the trust.
Substantially all of the Company’s credit card securitization activity is
through two trusts—Citibank Credit Card Master Trust (Master Trust) and
the Citibank Omni Master Trust (Omni Trust). Since the adoption of SFAS
167 (ASC 810) on January 1, 2010, these trusts are treated as consolidated
entities because, as servicer, Citigroup has the power to direct the activities
that most significantly impact the economic performance of the trusts and
also holds a seller’s interest and certain securities issued by the trusts, and
provides liquidity facilities to the trusts, which could result in potentially
significant losses or benefits from the trusts. Accordingly, the transferred
credit card receivables remain on the Consolidated Balance Sheet with
no gain or loss recognized. The debt issued by the trusts to third parties is
included in the Consolidated Balance Sheet.
The Company relies on securitizations to fund a significant portion of
its credit card businesses in North America. The following table reflects
amounts related to the Company’s securitized credit card receivables as of
December 31, 2012 and December 31, 2011:
Citicorp Citi Holdings
In billions of dollars
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Principal amount of credit card receivables in trusts $80.7 $89.8 $0.4 $0.6
Ownership interests in principal amount of trust credit card receivables
Sold to investors via trust-issued securities $22.9 $42.7 $0.1 $0.3
Retained by Citigroup as trust-issued securities 13.2 14.7 0.1 0.1
Retained by Citigroup via non-certificated interests 44.6 32.4 0.2 0.2
Total ownership interests in principal amount of trust credit card receivables $80.7 $89.8 $0.4 $0.6