Citibank 2013 Annual Report Download - page 263

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Citicorp and Citi Holdings Significant 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, 2013 and 2012:
In billions of dollars December 31, 2013 December 31, 2012
Citicorp Citi Holdings Citigroup Citicorp Citi Holdings Citigroup
Trading account assets $ 4.8 $ 0.4 $ 5.2 $ 4.0 $0.5 $ 4.5
Investments 3.7 0.4 4.1 5.4 0.7 6.1
Total loans, net 18.3 0.6 18.9 14.6 0.9 15.5
Other 2.2 0.5 2.7 1.6 0.5 2.1
Total assets $29.0 $ 1.9 $30.9 $25.6 $2.6 $28.2
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; 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). 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, 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 Citi’s Consolidated Balance Sheet with
no gain or loss recognized. The debt issued by the trusts to third parties is
included in Citi’s Consolidated Balance Sheet.
The Company utilizes securitizations as one of the sources of funding for
its business in North America. The following table reflects amounts related
to the Company’s securitized credit card receivables as of December 31, 2013
and 2012:
Citicorp Citi Holdings
In billions of dollars
December 31,
2013
December 31,
2012
December 31,
2013
December 31,
2012
Ownership interests in principal amount of trust credit card receivables
Sold to investors via trust-issued securities $32.3 $22.9 $ — $0.1
Retained by Citigroup as trust-issued securities 8.1 11.9 1.3 1.4
Retained by Citigroup via non-certificated interests (1) 12.1 44.6 —0.2
Total ownership interests in principal amount of trust credit card receivables $52.5 $79.4 $1.3 $1.7
(1) As part of its liquidity and funding strategy, during the first quarter of 2013, the Company elected to remove approximately $27 billion of randomly selected credit card receivables from the Master Trust ($12 billion)
and Omni Trust ($15 billion) that represented a portion of the excess seller’s interest in each trust. Subsequently, during the second half of 2013, Citi elected to add approximately $7.4 billion of credit card receivables
to the Master Trust from the U.S. Citi-branded cards business’ portfolio of eligible unsecuritized credit card receivables. These credit card receivables continue to be included in Consumer loans on the Consolidated
Balance Sheet as of December 31, 2013.
Credit Card Securitizations—Citicorp
The following table summarizes selected cash flow information related to
Citicorp’s credit card securitizations for the years ended December 31, 2013,
2012 and 2011:
In billions of dollars 2013 2012 2011
Proceeds from new securitizations $ 15.2 $ 2.4 $ 3.9
Pay down of maturing notes (11.2) (21.7) (20.5)
Credit Card Securitizations—Citi Holdings
The following table summarizes selected cash flow information related to
Citi Holdings’ credit card securitizations for the years ended December 31, 2013,
2012 and 2011:
In billions of dollars 2013 2012 2011
Proceeds from new securitizations $ 0.2 $0.4 $—
Pay down of maturing notes (0.1) ——