Citibank 2014 Annual Report Download - page 207

190
14. INVESTMENTS
Overview
December 31,
In millions of dollars 2014 2013
Securities available-for-sale (AFS) $300,143 $286,511
Debt securities held-to-maturity (HTM) (1) 23,921 10,599
Non-marketable equity securities carried at fair value (2) 2,758 4,705
Non-marketable equity securities carried at cost (3) 6,621 7,165
Total investments $333,443 $308,980
(1) Carried at amortized cost basis, including any impairment for securities that have credit-related impairment.
(2) Unrealized gains and losses for non-marketable equity securities carried at fair value are recognized in earnings.
(3) Primarily consists of shares issued by the Federal Reserve Bank, Federal Home Loan Banks, foreign central banks and various clearing houses of which Citigroup is a member.
The following table presents interest and dividends on investments for the
years ended December 31, 2014, 2013 and 2012:
In millions of dollars 2014 2013 2012
Taxable interest $ 6,311 $ 5,750 $ 6,509
Interest exempt from U.S. federal income tax 439 732 683
Dividends 445 437 333
Total interest and dividends $ 7,195 $ 6,919 $ 7,525
The following table presents realized gains and losses on the sale of
investments for the years ended December 31, 2014, 2013 and 2012. The
gross realized investment losses exclude losses from other-than-temporary
impairment (OTTI):
In millions of dollars 2014 2013 2012
Gross realized investment gains $1,020 $1,606 $3,663
Gross realized investment losses (450) (858) (412)
Net realized gains on sale of investments $ 570 $ 748 $3,251
The Company has sold certain debt securities that were classified as
HTM. These sales were in response to significant deterioration in the
creditworthiness of the issuers or securities. In addition, other securities were
reclassified to AFS investments in response to significant credit deterioration
or because a substantial portion of the securities’ principal outstanding at
acquisition has been collected. Because the Company generally intends to sell
the securities, Citi recorded OTTI on the securities. The following table sets
forth, for the periods indicated, gain (loss) on HTM securities sold, securities
reclassified to AFS and OTTI recorded on AFS securities reclassified.
In millions of dollars 2014 2013 2012
Carrying value of HTM securities sold $ 8 $ 935 $ 2,110
Net realized gain (loss) on sale of HTM securities —(128) (187)
Carrying value of securities reclassified to AFS 889 989 244
OTTI losses on securities reclassified to AFS (25) (156) (59)