Citibank 2014 Annual Report Download - page 249

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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, 2014
and 2013:
In billions of dollars December 31, 2014 December 31, 2013
Citicorp Citi Holdings Citigroup Citicorp Citi Holdings Citigroup
Trading account assets $ 7.4 $ 0.2 $ 7.6 $ 4.8 $0.6 $ 5.4
Investments 2.4 0.2 2.6 3.7 0.4 4.1
Total loans, net 24.9 0.1 25.0 18.2 0.6 18.8
Other 1.8 0.2 2.0 2.2 0.5 2.7
Total assets $36.5 $ 0.7 $37.2 $28.9 $2.1 $31.0
Credit Card Securitizations
The Company securitizes credit card receivables through trusts 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), with the substantial majority
through the Master Trust. These trusts are consolidated entities because, as
servicer, Citigroup has the power to direct the activities that most significantly
impact the economic performance of the trusts, Citigroup holds a seller’s
interest and certain securities issued by the trusts, and also 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, 2014
and 2013:
Citicorp Citi Holdings
In billions of dollars
December 31,
2014
December 31,
2013
December 31,
2014
December 31,
2013
Ownership interests in principal amount of trust credit card receivables
Sold to investors via trust-issued securities $37.0 $32.3 $ — $ —
Retained by Citigroup as trust-issued securities 10.1 8.1 —1.3
Retained by Citigroup via non-certificated interests 14.2 12.1 ——
Total ownership interests in principal amount of trust credit card receivables $61.3 $52.5 $ — $1.3
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, 2014,
2013 and 2012:
In billions of dollars 2014 2013 2012
Proceeds from new securitizations $12.5 $11.5 $ 0.5
Pay down of maturing notes (7.8) (2.1) (20.4)
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,
2014, 2013 and 2012:
In billions of dollars 2014 2013 2012
Proceeds from new securitizations $0.1 $ 0.2 $ 1.7
Pay down of maturing notes —(0.1) (0.1)