Citibank 2015 Annual Report Download - page 243

225
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:
December 31, 2015 December 31, 2014
In millions of dollars Liquidity facilities
Loan / equity
commitments Liquidity facilities
Loan / equity
commitments
Asset-based financing $ 5 $ 3,886 $ 5 $2,266
Municipal securities tender option bond trusts (TOBs) 3,100 — 3,670 —
Municipal investments — 2,338 — 2,225
Investment funds — 102 — 124
Other — — — 23
Total funding commitments $3,105 $ 6,326 $3,675 $4,638
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 Consolidated Balance Sheet, and any proceeds
received are recognized as secured liabilities. 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 respective
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. 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 VIE 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 obligations:
In billions of dollars December 31, 2015 December 31, 2014
Cash $ 0.2 $ 0.3
Trading account assets 0.6 0.7
Investments 5.3 8.0
Total loans, net of allowance 78.6 93.2
Other 0.1 0.6
Total assets $84.8 $102.8
Short-term borrowings $14.0 $ 22.7
Long-term debt 31.3 40.1
Other liabilities 2.1 0.9
Total liabilities (1) $47.4 $ 63.7
(1) The total liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of Citi were $45.3 billion and $61.2 billion as of December 31, 2015 and 2014,
respectively. Liabilities of consolidated VIEs for which creditors or beneficial interest holders have recourse to the general credit of Citi comprise two items included in the above table: (i) credit enhancements provided
to consolidated Citi-administered commercial paper conduits in the form of letters of credit of $1.9 billion and $2.3 billion at December 31, 2015 and 2014, respectively; and (ii) credit guarantees provided by Citi to
certain consolidated municipal tender option bond trusts of $82 million and $198 million at December 31, 2015 and 2014, respectively.
Significant Interests in Unconsolidated VIEs—Balance Sheet
Classification
The following table presents the carrying amounts and classification of
significant variable interests in unconsolidated VIEs:
In billions of dollars December 31, 2015 December 31, 2014
Cash $ 0.1 $ —
Trading account assets 6.2 7.6
Investments 3.0 2.6
Total loans, net of allowance 28.4 25.0
Other 1.8 2.0
Total assets $39.5 $37.2