CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Citigroup Inc. and Subsidiaries, USD $) | |||||||||||||||||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |||||||||||||||
Revenues | |||||||||||||||||||
Interest revenue | $19,671 | $27,337 | [2] | $40,254 | $56,498 | [2] | |||||||||||||
Interest expense | 6,842 | 13,351 | [2] | 14,499 | 29,424 | [2] | |||||||||||||
Net interest revenue | 12,829 | 13,986 | [2] | 25,755 | 27,074 | [2] | |||||||||||||
Commissions and fees | 5,437 | 5,799 | [2] | 9,605 | 7,140 | [2] | |||||||||||||
Principal transactions | 433 | (5,802) | [2] | 4,103 | (12,434) | [2] | |||||||||||||
Administration and other fiduciary fees | 1,472 | 2,197 | [2] | 3,078 | 4,398 | [2] | |||||||||||||
Realized gains (losses) on sales of investments | 535 | 29 | [2] | 1,292 | 226 | [2] | |||||||||||||
Other-than-temporary impairment losses on investments | |||||||||||||||||||
Gross impairment losses | (2,329) | [1] | (168) | [1],[2] | (3,708) | [1] | (484) | [1],[2] | |||||||||||
Less: Impairments recognized in OCI | 1,634 | [1] | 2,265 | [1] | |||||||||||||||
Net impairment losses recognized in earnings | (695) | [1] | (168) | [1],[2] | (1,443) | [1] | (484) | [1],[2] | |||||||||||
Insurance premiums | 745 | 847 | [2] | 1,500 | 1,690 | [2] | |||||||||||||
Other revenue | 9,213 | 650 | [2] | 10,600 | 2,085 | [2] | |||||||||||||
Total non-interest revenues | 17,140 | 3,552 | [2] | 28,735 | 2,621 | [2] | |||||||||||||
Total revenues, net of interest expense | 29,969 | 17,538 | [2] | 54,490 | 29,695 | [2] | |||||||||||||
Provisions for credit losses and for benefits and claims | |||||||||||||||||||
Provision for loan losses | 12,233 | 6,983 | [2] | 22,148 | 12,560 | [2] | |||||||||||||
Policyholder benefits and claims | 308 | 260 | [2] | 640 | 535 | [2] | |||||||||||||
Provision for unfunded lending commitments | 135 | (143) | [2] | 195 | (143) | [2] | |||||||||||||
Total provisions for credit losses and for benefits and claims | 12,676 | 7,100 | [2] | 22,983 | 12,952 | [2] | |||||||||||||
Operating expenses | |||||||||||||||||||
Compensation and benefits | 6,359 | 8,692 | [2] | 12,594 | 17,254 | [2] | |||||||||||||
Premises and equipment | 1,091 | 1,347 | [2] | 2,174 | 2,641 | [2] | |||||||||||||
Technology/communication | 1,154 | 1,519 | [2] | 2,296 | 3,019 | [2] | |||||||||||||
Advertising and marketing | 351 | 616 | [2] | 685 | 1,217 | [2] | |||||||||||||
Restructuring | (32) | (44) | [2] | (45) | (29) | [2] | |||||||||||||
Other operating | 3,076 | 3,084 | [2] | 5,980 | 6,489 | [2] | |||||||||||||
Total operating expenses | 11,999 | 15,214 | [2] | 23,684 | 30,591 | [2] | |||||||||||||
Income (loss) from continuing operations before income taxes | 5,294 | (4,776) | [2] | 7,823 | (13,848) | [2] | |||||||||||||
Provision (benefit) for income taxes | 907 | (2,447) | [2] | 1,742 | (6,333) | [2] | |||||||||||||
Income (loss) from continuing operations | 4,387 | (2,329) | [2] | 6,081 | (7,515) | [2] | |||||||||||||
Discontinued operations | |||||||||||||||||||
Income (loss) from discontinued operations | (279) | 337 | [2] | (431) | 391 | [2] | |||||||||||||
Gain (loss) on sale | 14 | (517) | [2] | 2 | (517) | [2] | |||||||||||||
Provision (benefit) for income taxes | (123) | (86) | [2] | (170) | (91) | [2] | |||||||||||||
Income (loss) from discontinued operations, net of taxes | (142) | (94) | [2] | (259) | (35) | [2] | |||||||||||||
Net income (loss) before attribution of noncontrolling interests | 4,245 | (2,423) | [2] | 5,822 | (7,550) | [2] | |||||||||||||
Net income (loss) attributable to noncontrolling interests | (34) | 72 | [2] | (50) | 56 | [2] | |||||||||||||
Citigroup's net income (loss) | 4,279 | (2,495) | [2] | 5,872 | (7,606) | [2] | |||||||||||||
Basic earnings per share | |||||||||||||||||||
Income (loss) from continuing operations (in dollars per share) | 0.51 | [3] | -0.53 | [2],[3] | 0.36 | [3] | -1.56 | [2],[3] | |||||||||||
Income (loss) from discontinued operations, net of taxes (in dollars per share) | -0.02 | [3] | -0.02 | [2],[3] | -0.05 | [3] | -0.01 | [2],[3] | |||||||||||
Net income (loss) (in dollars per share) | 0.49 | [3] | -0.55 | [2],[3] | 0.31 | [3] | -1.57 | [2],[3] | |||||||||||
Weighted average common shares outstanding (in shares) | 5399.5 | 5287.4 | [2] | 5392.3 | 5186.5 | [2] | |||||||||||||
Diluted earnings per share | |||||||||||||||||||
Income (loss) from continuing operations (in dollars per share) | 0.51 | [3] | -0.53 | [2],[3] | 0.36 | [3] | -1.56 | [2],[3] | |||||||||||
Income (loss) from discontinued operations, net of taxes (in dollars per share) | -0.02 | [3] | -0.02 | [2],[3] | -0.05 | [3] | -0.01 | [2],[3] | |||||||||||
Net income (loss) (in dollars per share) | 0.49 | [3] | -0.55 | [2],[3] | 0.31 | [3] | -1.57 | [2],[3] | |||||||||||
Adjusted weighted average common shares outstanding (in shares) | 5967.8 | 5776.8 | [2] | 5960.6 | 5676.3 | [2] | |||||||||||||
Citigroup Inc. and Subsidiaries | Retained earnings | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||
Net income (loss) before attribution of noncontrolling interests | [2] | 5,872 | (7,606) | ||||||||||||||||
Citigroup Inc. and Subsidiaries | Noncontrolling interests | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | [2] | (50) | 56 | ||||||||||||||||
Citigroup Inc. and Subsidiaries | Comprehensive income (loss) | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||
Net income (loss) before attribution of noncontrolling interests | [2] | $5,822 | ($7,550) | ||||||||||||||||
[1]For the three and six months ended June 30, 2009, OTTI losses on investments are accounted for in accordance FSP FAS 115-2 (ASC 320-10-65-1) (see "Accounting Changes" in Note 1 to the Consolidated Financial Statements). | |||||||||||||||||||
[2]Reclassified to conform to the current period's presentation | |||||||||||||||||||
[3]The Company adopted FSP EITF 03-6-1 (ASC 260-10-45 to 65) on January 1, 2009. All prior periods have been restated to conform to the current presentation. The Diluted EPS calculation for 2008 utilizes Basic shares and Income available to common shareholders (Basic) due to the negative Income available to common shareholders. Using actual Diluted shares and Income available to common shareholders (Diluted) would result in anti-dilution. |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET (Citigroup Inc. and Subsidiaries, USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
Assets | ||
Cash and due from banks (including segregated cash and other deposits) | $26,915 | $29,253 |
Deposits with banks | 182,577 | 170,331 |
Federal funds sold and securities borrowed or purchased under agreements to resell (including $73,755 and $70,305 as of June 30, 2009 and December 31, 2008, respectively, at fair value) | 179,503 | 184,133 |
Brokerage receivables | 34,598 | 44,278 |
Trading account assets (including $125,977 and $148,703 pledged to creditors at June 30, 2009 and December 31, 2008, respectively) | 325,037 | 377,635 |
Investments (including $32,159 and $14,875 pledged to creditors at June 30, 2009 and December 31, 2008, respectively) | 266,757 | 256,020 |
Loans, net of unearned income | ||
Consumer (including $32 and $36 at June 30, 2009 and December 31, 2008, respectively, at fair value) | 447,652 | 481,387 |
Corporate (including $1,799 and $2,696 at June 30, 2009 and December 31, 2008, respectively, at fair value) | 194,038 | 212,829 |
Loans, net of unearned income | 641,690 | 694,216 |
Allowance for loan losses | (35,940) | (29,616) |
Total loans, net | 605,750 | 664,600 |
Goodwill | 25,578 | 27,132 |
Intangible assets (other than MSRs) | 10,098 | 14,159 |
Mortgage servicing rights (MSRs) | 6,770 | 5,657 |
Other assets (including $19,300 and $21,372 as of June 30, 2009 and December 31, 2008 respectively, at fair value) | 165,538 | 165,272 |
Assets of discontinued operations held for sale | 19,412 | |
Total assets | 1,848,533 | 1,938,470 |
Deposits | ||
Non-interest-bearing deposits in U.S.offices | 82,854 | 60,070 |
Interest-bearing deposits in U.S. offices (including $998 and $1,335 at June 30, 2009 and December 31, 2008, respectively, at fair value) | 228,576 | 229,906 |
Total U.S. deposits | 311,430 | 289,976 |
Non-interest-bearing deposits in offices outside the U.S. | 40,389 | 37,412 |
Interest-bearing deposits in offices outside the U.S. (including $1,109 and $1,271 at June 30, 2009 and December 31, 2008, respectively, at fair value) | 452,917 | 446,797 |
Total international deposits | 493,306 | 484,209 |
Total deposits | 804,736 | 774,185 |
Federal funds purchased and securities loaned or sold under agreements to repurchase (including $116,133 and $138,866 as of June 30, 2009 and December 31, 2008, respectively, at fair value) | 172,016 | 205,293 |
Brokerage payables | 52,696 | 70,916 |
Trading account liabilities | 119,312 | 167,478 |
Short-term borrowings (including $3,358 and $17,607 at June 30, 2009 and December 31, 2008, respectively, at fair value) | 101,894 | 126,691 |
Long-term debt (including $24,690 and $27,263 at June 30, 2009 and December 31, 2008, respectively, at fair value) | 348,046 | 359,593 |
Other liabilities (including $12,667 and $11,889 as of June 30, 2009 and December 31, 2008, respectively, at fair value) | 83,291 | 90,292 |
Liabilities of discontinued operations held for sale | 12,374 | |
Total liabilities | 1,694,365 | 1,794,448 |
Citigroup stockholders' equity | ||
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: 835,632 at June 30, 2009, at aggregate liquidation value | 74,301 | 70,664 |
Common stock ($0.01 par value; authorized shares: 15 billion), issued shares: 5,671,743,807 at June 30, 2009 and December 31, 2008. | 57 | 57 |
Additional paid-in capital | 16,663 | 19,165 |
Retained earnings | 88,874 | 86,521 |
Treasury stock, at cost: June 30, 2009 - 164,026,833 shares and December 31, 2008 - 221,675,719 shares | (5,950) | (9,582) |
Accumulated other comprehensive income (loss) | (21,643) | (25,195) |
Total Citigroup stockholders' equity | 152,302 | 141,630 |
Noncontrolling interest | 1,866 | 2,392 |
Total equity | 154,168 | 144,022 |
Total liabilities and equity | 1,848,533 | 1,938,470 |
Citigroup Inc. and Subsidiaries | Citigroup stockholders' equity | ||
Citigroup stockholders' equity | ||
Total equity | 152,302 | 141,630 |
Citigroup Inc. and Subsidiaries | Citigroup common stockholders equity | ||
Citigroup stockholders' equity | ||
Total equity | 78,001 | 70,966 |
Citigroup Inc. and Subsidiaries | Common stock and additional paid-in capital | ||
Citigroup stockholders' equity | ||
Total equity | 16,720 | 19,222 |
Citigroup Inc. and Subsidiaries | Retained earnings | ||
Citigroup stockholders' equity | ||
Total equity | 88,874 | |
Citigroup Inc. and Subsidiaries | Retained earnings | Previously reported | ||
Citigroup stockholders' equity | ||
Total equity | 86,521 | |
Citigroup Inc. and Subsidiaries | Retained earnings | Adjustment | ||
Citigroup stockholders' equity | ||
Total equity | 86,934 | |
Citigroup Inc. and Subsidiaries | Treasury stock, at cost | ||
Citigroup stockholders' equity | ||
Total equity | (5,950) | (9,582) |
Citigroup Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | ||
Citigroup stockholders' equity | ||
Total equity | (21,643) | |
Citigroup Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Previously reported | ||
Citigroup stockholders' equity | ||
Total equity | (25,195) | |
Citigroup Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Adjustment | ||
Citigroup stockholders' equity | ||
Total equity | (25,608) | |
Citigroup Inc. and Subsidiaries | Preferred stock at aggregate liquidation value | ||
Citigroup stockholders' equity | ||
Total equity | 74,301 | 70,664 |
Citigroup Inc. and Subsidiaries | Noncontrolling interests | ||
Citigroup stockholders' equity | ||
Total equity | $1,866 | $2,392 |
CONSOLIDATED BALANCE SHEET PARE
CONSOLIDATED BALANCE SHEET PARENTHETICAL (Citigroup Inc. and Subsidiaries, USD $) | ||
In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Federal funds sold and securities borrowed or purchased under agreements to resell, at fair value | $73,755 | $70,305 |
Trading account assets, pledged to creditors | 125,977 | 148,703 |
Investments pledged to creditors | 32,159 | 14,875 |
Consumer loans, at fair value | 32 | 36 |
Corporate loans, at fair value | 1,799 | 2,696 |
Other assets, at fair value | 19,300 | 21,372 |
Interest-bearing deposits in U.S. offices, at fair value | 998 | 1,335 |
Interest-bearing deposits in offices outside the U.S., at fair value | 1,109 | 1,271 |
Federal funds purchased and securities loaned or sold under agreements to repurchase, at fair value | 116,133 | 138,866 |
Short-term borrowings, at fair value | 3,358 | 17,607 |
Long-term debt, at fair value | 24,690 | 27,263 |
Other liabilities, at fair value | $12,667 | $11,889 |
Preferred stock, par value per share (in dollars per share) | $1 | $1 |
Preferred stock, authorized shares (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued shares (in shares) | 835,632 | |
Common stock par value (in dollars per share) | 0.01 | 0.01 |
Common stock, authorized shares (in shares) | 15,000,000,000 | 15,000,000,000 |
Common stock, issued shares (in shares) | 5,671,743,807 | 5,671,743,807 |
Treasury stock at cost, shares (in shares) | 164,026,833 | 221,675,719 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Citigroup Inc. and Subsidiaries, USD $) | |||||||||||||||||||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | $144,022 | $118,755 | |||||||||||||||||
Net income attributable to noncontrolling interests shareholders | (50) | 56 | [3] | ||||||||||||||||
Net income (loss) | 5,822 | (7,550) | [3] | ||||||||||||||||
Total Citigroup common stockholders' equity (shares outstanding: 5,507,717 at June 30, 2009 and 5,450,068 at December 31,2008) | 152,302 | ||||||||||||||||||
Balance, end of period | 154,168 | 140,920 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Citigroup stockholders' equity | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 141,630 | 113,447 | |||||||||||||||||
Transactions between noncontrolling interest shareholders and the related consolidating subsidiary | 0 | ||||||||||||||||||
Transactions between Citigroup and the noncontrolling interest shareholders | 0 | ||||||||||||||||||
Balance, end of period | 152,302 | 136,405 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Citigroup common stockholders equity | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 70,966 | 113,447 | |||||||||||||||||
Transactions between noncontrolling interest shareholders and the related consolidating subsidiary | 0 | ||||||||||||||||||
Transactions between Citigroup and the noncontrolling interest shareholders | 0 | ||||||||||||||||||
Balance, end of period | 78,001 | 108,981 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Common stock and additional paid-in capital | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 19,222 | 18,062 | |||||||||||||||||
Employee benefit plans | (3,892) | (2,695) | |||||||||||||||||
Issuance of Common stock | 4,911 | ||||||||||||||||||
Issuance of shares for Nikko Cordial acquisition | (3,500) | ||||||||||||||||||
Issuance of TARP-related warrants | 88 | ||||||||||||||||||
Reset of convertible preferred stock conversion price | 1,285 | ||||||||||||||||||
Other | 17 | (127) | |||||||||||||||||
Balance, end of period | 16,720 | 16,651 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Retained earnings | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income (loss) | 5,872 | (7,606) | |||||||||||||||||
Common dividends | (37) | [2] | (3,429) | [2] | |||||||||||||||
Preferred dividends | (2,502) | (444) | |||||||||||||||||
Preferred stock Series H discount accretion | (108) | ||||||||||||||||||
Reset of convertible preferred stock conversion price | (1,285) | ||||||||||||||||||
Balance, end of period | 88,874 | 110,290 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Retained earnings | Previously reported | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 86,521 | 121,769 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Retained earnings | Adjustment | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 86,934 | 121,769 | |||||||||||||||||
Adjustment to opening balance, net of tax | 413 | [4] | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Treasury stock, at cost | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | (9,582) | (21,724) | |||||||||||||||||
Issuance of shares pursuant to employee benefit plans | 3,617 | 3,941 | |||||||||||||||||
Treasury stock acquired | (2) | (6) | [1] | ||||||||||||||||
Issuance of shares for Nikko Cordial acquisition | 7,858 | ||||||||||||||||||
Other | 17 | 20 | |||||||||||||||||
Balance, end of period | (5,950) | (9,911) | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net change in unrealized gains and losses on investment securities, net of tax | 3,005 | (3,715) | |||||||||||||||||
Net change in cash flow hedges, net of tax | 1,524 | (760) | |||||||||||||||||
Net change in FX translation adjustment, net of tax | (568) | 1,111 | |||||||||||||||||
Pension liability adjustment, net of tax | 4 | (25) | |||||||||||||||||
Net change in accumulated other comprehensive income (loss) | 3,965 | (3,389) | |||||||||||||||||
Balance, end of period | (21,643) | (8,049) | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Previously reported | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | (25,195) | (4,660) | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Accumulated other comprehensive income (loss) | Adjustment | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | (25,608) | (4,660) | |||||||||||||||||
Adjustment to opening balance, net of tax | (413) | [4] | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Preferred stock at aggregate liquidation value | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 70,664 | 0 | |||||||||||||||||
Issuance of preferred stock | 3,637 | 27,424 | |||||||||||||||||
Balance, end of period | 74,301 | 27,424 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Noncontrolling interests | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Balance, beginning of period | 2,392 | 5,308 | |||||||||||||||||
Initial origination of a noncontrolling interests | 1,409 | ||||||||||||||||||
Transactions between noncontrolling interest shareholders and the related consolidating subsidiary | (134) | (2,237) | |||||||||||||||||
Transactions between Citigroup and the noncontrolling interest shareholders | (359) | (261) | |||||||||||||||||
Net income attributable to noncontrolling interests shareholders | (50) | 56 | |||||||||||||||||
Dividends paid to noncontrolling interest shareholders | (16) | (61) | |||||||||||||||||
Net change in unrealized gains and losses on investment securities, net of tax | 1 | (12) | |||||||||||||||||
Net change in FX translation adjustment, net of tax | (31) | 126 | |||||||||||||||||
Other | 63 | 187 | |||||||||||||||||
Net change in noncontrolling interests | (526) | (793) | |||||||||||||||||
Balance, end of period | 1,866 | 4,515 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Comprehensive income (loss) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income (loss) | 5,822 | (7,550) | |||||||||||||||||
Net change in accumulated other comprehensive income (loss) | 3,935 | (3,275) | |||||||||||||||||
Total comprehensive income (loss) | 9,757 | (10,825) | |||||||||||||||||
Comprehensive income (loss) attributable to the noncontrolling interest | (80) | 170 | |||||||||||||||||
Comprehensive income (loss) attributable to Citigroup | $9,837 | ($10,995) | |||||||||||||||||
[1]All open market repurchases were transacted under an existing authorized share repurchase plan. | |||||||||||||||||||
[2]Common dividends declared were $0.01 per share in the first quarter of 2009 and $0.32 per share in the first and second quarters of 2008. | |||||||||||||||||||
[3]Reclassified to conform to the current period's presentation | |||||||||||||||||||
[4]The adjustment to the opening balances for Retained earnings and Accumulated other comprehensive income (loss) represents the cumulative effect of initially adopting FSP FAS 115-2 (ASC 320-10-65-1). See Note 1 to the Consolidated Financial Statements for further disclosure. |
1_CONSOLIDATED STATEMENT OF CHA
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY PARENTHETICAL (Citigroup Inc. and Subsidiaries, USD $) | ||
Jun. 30, 2009
| Dec. 31, 2008
| |
Capital stock, shares outstanding (in shares) | 5,507,717 | 5,450,068 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Citigroup Inc. and Subsidiaries, USD $) | |||||||||||||||||||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |||||||||||||||||
Cash flows from operating activities of continuing operations | |||||||||||||||||||
Net income (loss) | $5,822 | ($7,550) | [1] | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (50) | 56 | [1] | ||||||||||||||||
Citigroup's net income (loss) | 5,872 | (7,606) | [1] | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (261) | 278 | [1] | ||||||||||||||||
Gain (loss) on sale, net of taxes | 2 | (313) | [1] | ||||||||||||||||
Income (loss) from continuing operations - excluding noncontrolling interests | 6,131 | (7,571) | [1] | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities of continuing operations | |||||||||||||||||||
Amortization of deferred policy acquisition costs and present value of future profits | 196 | 167 | [1] | ||||||||||||||||
Additions to deferred policy acquisition costs | (221) | (222) | [1] | ||||||||||||||||
Depreciation and amortization | 859 | 1,410 | [1] | ||||||||||||||||
Provision for credit losses | 22,343 | 12,628 | [1] | ||||||||||||||||
Change in trading account assets | 48,322 | 33,545 | [1] | ||||||||||||||||
Change in trading account liabilities | (47,786) | 7,386 | [1] | ||||||||||||||||
Change in federal funds sold and securities borrowed or purchased under agreements to resell | 1,324 | 53,897 | [1] | ||||||||||||||||
Change in federal funds purchased and securities loaned or sold under agreements to repurchase | (31,804) | (58,136) | [1] | ||||||||||||||||
Change in brokerage receivables net of brokerage payables | (7,763) | 6,348 | [1] | ||||||||||||||||
Net losses (gains) from sales of investments | (1,231) | 258 | [1] | ||||||||||||||||
Change in loans held-for-sale | (820) | 16,340 | [1] | ||||||||||||||||
Other, net | (10,287) | (12,902) | [1] | ||||||||||||||||
Total adjustments | (26,868) | 60,719 | [1] | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | (20,737) | 53,148 | [1] | ||||||||||||||||
Cash flows from investing activities of continuing operations | |||||||||||||||||||
Change in deposits at interest with banks | (12,689) | 1,421 | [1] | ||||||||||||||||
Change in loans | (86,734) | (134,903) | [1] | ||||||||||||||||
Proceeds from sales and securitizations of loans | 127,034 | 142,939 | [1] | ||||||||||||||||
Purchases of investments | (120,361) | (213,470) | [1] | ||||||||||||||||
Proceeds from sales of investments | 47,441 | 59,265 | [1] | ||||||||||||||||
Proceeds from maturities of investments | 57,536 | 131,466 | [1] | ||||||||||||||||
Capital expenditures on premises and equipment | (615) | (1,509) | [1] | ||||||||||||||||
Proceeds from sales of premises and equipment, subsidiaries and affiliates, and repossessed assets | 4,845 | 2,216 | [1] | ||||||||||||||||
Net cash provided by (used in) investing activities of continuing operations | 16,457 | (12,575) | [1] | ||||||||||||||||
Cash flows from financing activities of continuing operations | |||||||||||||||||||
Dividends paid | (2,539) | (3,873) | [1] | ||||||||||||||||
Issuance of common stock | 4,961 | [1] | |||||||||||||||||
Issuance (redemptions) of preferred stock | 27,424 | [1] | |||||||||||||||||
Treasury stock acquired | (2) | (6) | [1] | ||||||||||||||||
Stock tendered for payment of withholding taxes | (108) | (325) | [1] | ||||||||||||||||
Issuance of long-term debt | 60,205 | 49,878 | [1] | ||||||||||||||||
Payments and redemptions of long-term debt | (66,652) | (57,780) | [1] | ||||||||||||||||
Change in deposits | 30,552 | (22,588) | [1] | ||||||||||||||||
Change in short-term borrowings | (20,497) | (32,043) | [1] | ||||||||||||||||
Net cash (used in) provided by financing activities of continuing operations | 959 | (34,352) | [1] | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 171 | 212 | [1] | ||||||||||||||||
Net cash from discontinued operations | 812 | 185 | |||||||||||||||||
Change in cash and due from banks | (2,338) | 6,618 | [1] | ||||||||||||||||
Cash and due from banks at beginning of period | 29,253 | 38,206 | |||||||||||||||||
Cash and due from banks at end of period | 26,915 | 44,824 | |||||||||||||||||
Supplemental disclosure of cash flow information for continuing operations | |||||||||||||||||||
Cash (received) paid during the period for income taxes | (585) | 915 | [1] | ||||||||||||||||
Cash paid during the period for interest | 15,084 | 30,856 | [1] | ||||||||||||||||
Non-cash investing activities | |||||||||||||||||||
Transfers to repossessed assets | 1,363 | 1,505 | [1] | ||||||||||||||||
Citigroup Inc. and Subsidiaries | Retained earnings | |||||||||||||||||||
Cash flows from operating activities of continuing operations | |||||||||||||||||||
Net income (loss) | 5,872 | (7,606) | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Noncontrolling interests | |||||||||||||||||||
Cash flows from operating activities of continuing operations | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (50) | 56 | |||||||||||||||||
Citigroup Inc. and Subsidiaries | Comprehensive income (loss) | |||||||||||||||||||
Cash flows from operating activities of continuing operations | |||||||||||||||||||
Net income (loss) | $5,822 | ($7,550) | |||||||||||||||||
[1]Reclassified to conform to the current period's presentation |
2_CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET (Citibank, N.A. and Subsidiaries, USD $) | |||||||||||||||||||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
| |||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $20,387 | $22,107 | |||||||||||||||||
Deposits with banks | 171,639 | 156,774 | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 18,297 | 41,613 | |||||||||||||||||
Trading account assets (including $1,100 and $12,092 pledged to creditors at June 30, 2009 and December 31, 2008, respectively) | 153,031 | 197,052 | |||||||||||||||||
Investments (including $1,707 and $3,028 pledged to creditors at June 30, 2009 and December 31, 2008, respectively) | 190,070 | 165,914 | |||||||||||||||||
Loans, net of unearned income | 525,265 | 555,198 | |||||||||||||||||
Allowance for loan losses | (22,881) | (18,273) | |||||||||||||||||
Total loans, net | 502,384 | 536,925 | |||||||||||||||||
Goodwill | 9,908 | 10,148 | |||||||||||||||||
Intangible assets | 8,582 | 7,689 | |||||||||||||||||
Premises and equipment, net | 5,005 | 5,331 | |||||||||||||||||
Interest and fees receivable | 6,764 | 7,171 | |||||||||||||||||
Other assets | 79,333 | 76,316 | |||||||||||||||||
Total assets | 1,165,400 | 1,227,040 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Non-interest-bearing deposits in U.S.offices | 86,285 | 59,808 | |||||||||||||||||
Interest-bearing deposits in U.S. offices | 176,284 | 180,737 | |||||||||||||||||
Non-interest-bearing deposits in offices outside the U.S. | 36,655 | 33,769 | |||||||||||||||||
Interest-bearing deposits in offices outside the U.S. | 456,793 | 480,984 | |||||||||||||||||
Total deposits | 756,017 | 755,298 | |||||||||||||||||
Trading account liabilities | 57,215 | 110,599 | |||||||||||||||||
Purchased funds and other borrowings | 107,693 | 116,333 | |||||||||||||||||
Accrued taxes and other expenses | 8,070 | 8,192 | |||||||||||||||||
Long-term debt and subordinated notes | 85,904 | 113,381 | |||||||||||||||||
Other liabilities | 39,774 | 40,797 | |||||||||||||||||
Total liabilities | 1,054,673 | 1,144,600 | |||||||||||||||||
Citibank stockholders' equity | |||||||||||||||||||
Capital stock ($20 par value) outstanding shares: 37,534,553 in each period | 751 | 751 | |||||||||||||||||
Surplus | 102,263 | 74,767 | |||||||||||||||||
Retained earnings | 20,780 | 21,735 | |||||||||||||||||
Accumulated other comprehensive income (loss) | (13,964) | [1] | (15,895) | [1] | |||||||||||||||
Total Citibank stockholders' equity | 109,830 | 81,358 | |||||||||||||||||
Noncontrolling interest | 897 | 1,082 | |||||||||||||||||
Total equity | 110,727 | 82,440 | |||||||||||||||||
Total liabilities and equity | $1,165,400 | $1,227,040 | |||||||||||||||||
[1]Amounts at June 30, 2009 and December 31, 2008 include the after-tax amounts for net unrealized gains (losses) on investment securities of ($6.680) billion and ($8.008) billion, respectively, for FX translation of ($4.128) billion and ($3.964) billion, respectively, for cash flow hedges of ($2.509) billion and ($3.247) billion, respectively, and for pension liability adjustments of ($647) million and ($676) million, respectively. |
3_CONSOLIDATED BALANCE SHEET PA
CONSOLIDATED BALANCE SHEET PARENTHETICAL (Citibank, N.A. and Subsidiaries, USD $) | ||
In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Trading account assets pledged to creditors | $1,100 | $12,092 |
Investments pledged to creditors | $1,707 | $3,028 |
Capital stock, par value (in dollars per share) | $20 | $20 |
Capital stock, shares outstanding (in shares) | 37,534,553 | 37,534,553 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
BASIS OF PRESENTATION | 1.BASIS OF PRESENTATION The accompanying Unaudited Consolidated Financial Statements as of June30, 2009 and for the three- and six-month periods ended June30, 2009 include the accounts of CitigroupInc. (Citigroup) and its subsidiaries (collectively, the Company). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation, have been reflected. The accompanying Unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in Citigroup's 2008 Annual Report on Form10-K. Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles, but is not required for interim reporting purposes, has been condensed or omitted. Management must make estimates and assumptions that affect the Consolidated Financial Statements and the related footnote disclosures. While management makes its best judgment, actual results could differ from those estimates. Current market conditions increase the risk and complexity of the judgments in these estimates. Certain reclassifications have been made to the prior-period's financial statements to conform to the current period's presentation. As noted above, the Notes to Consolidated Financial Statements are unaudited, including any reclassifications to December31, 2008 balances related to the new Citicorp/Citi Holdings organizational structure. FASB Launches Accounting Standards Codification The FASB has issued FASB Statement No.168, The "FASB Accounting Standards Codification" and the Hierarchy of Generally Accepted Accounting Principles. Statement 168 establishes the FASB Accounting Standards Codification (Codification or ASC) as the single source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification supersedes all existing non-SEC accounting and reporting standards. All other nongrandfathered, non-SEC accounting literature not included in the Codification will become nonauthoritative. Following the Codification, the Board will not issue new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates, which will serve to update the Codification, provide background information about the guidance and provide the basis for conclusions on the changes to the Codification. GAAP is not intended to be changed as a result of the FASB's Codification project, but it will change the way the guidance is organized and presented. As a result, these changes will have a significant impact on how companies reference GAAP in their financial statements and in their accounting policies for financial statements issued for interim and annual periods ending after September15, 2009. Citigroup has begun the process |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
DISCONTINUED OPERATIONS | 2.DISCONTINUED OPERATIONS Sale of Nikko Cordial On May1, 2009, Citigroup entered into a definitive agreement to sell its Japanese domestic securities business, conducted principally through Nikko Cordial SecuritiesInc., to Sumitomo Mitsui Banking Corporation in a transaction with a total cash value to Citi of approximately $7.9billion (774.5billion). Citi's ownership interests in Nikko Citigroup Limited, Nikko Asset ManagementCo.,Ltd., and Nikko Principal Investments JapanLtd. were not included in the transaction. The transaction is expected to close by the end of the fourth quarter of 2009, subject to regulatory approvals and customary closing conditions. The Nikko Cordial operations had total assets and total liabilities as of June30, 2009, of $19.4billion and $12.4billion, respectively. Results for all of the Nikko Cordial businesses sold are reported as Discontinued operations for all periods presented. The assets and liabilities of the businesses being sold are included in Assets of discontinued operations held for sale and Liabilities of discontinued operations held for sale on the Consolidated Balance Sheet. The following is a summary as of June30, 2009 of the assets and liabilities of Discontinued operations held for sale on the Consolidated Balance Sheet for the operations related to the Nikko Cordial businesses to be sold: In millions of dollars June30, 2009 Assets Cash due from banks $ 800 Deposits at interest with banks 443 Federal funds sold and securities borrowed or purchased under agreements to resell 3,306 Brokerage receivables 1,711 Trading account assets 6,185 Investments 486 Goodwill 533 Intangibles 3,085 Other assets 2,863 Total assets $ 19,412 Liabilities Federal funds purchased and securities loaned or sold under agreements to repurchase sold under agreements to repurchase $ 1,473 Brokerage payables 2,488 Trading account liabilities 2,289 Short term borrowings 4,300 Other Liabilities 1,824 Total liabilities $ 12,374 Summarized financial information for discontinued operations, including cash flows, related to the sale of Nikko Cordial follows: Three Months Ended June30, Six Months Ended June30, In millions of dollars 2009 2008 2009 2008 Total revenues, net of interest expense $ 112 $ 539 $ 380 $ 823 Income (loss) from discontinued operations $ (248 ) $ 105 $ (382 ) $ (5 ) Provision (benefit) for income taxes and noncontrolling interest, net of taxes (83 ) 43 (133 ) (10 ) Income (loss) from discontinued operations, net of taxes $ (165 ) $ 62 $ (249 ) $ 5 Six Months Ended June30, In millions of dollars 2009 2008 Cash flows from operating activities $ 4,129 $ (1,535 ) Cash flows from investing activities (5,472 ) (3,229 ) Cash flows from financing activities 2,126 5,134 Net cash provided by (used in) d |
BUSINESS SEGMENTS - CITIGROUP I
BUSINESS SEGMENTS - CITIGROUP INC. AND SUBSIDIARIES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
BUSINESS SEGMENTS | 3.BUSINESS SEGMENTS The following table presents certain information regarding the Company's operations by segment: Revenues, net of interest expense Provision (benefit) for income taxes Income (loss) from continuing operations(1) Identifiable assets(2) Three Months Ended June30, In millions of dollars, except identifiable assets in billions Jun.30, 2009 Dec.31, 2008 2009 2008 2009 2008 2009 2008 Regional Consumer Banking $ 5,605 $ 6,881 $ (102 ) $ 331 $ 217 $ 991 $ 198 $ 200 Institutional Clients Group 9,355 9,885 1,332 1,313 2,841 2,442 787 802 Subtotal Citicorp 14,960 16,766 1,230 1,644 3,058 3,433 985 1,002 Citi Holdings 15,750 2,079 712 (3,323 ) 1,359 (5,225 ) 649 715 Corporate/Other (741 ) (1,307 ) (1,035 ) (768 ) (30 ) (537 ) 213 221 Total $ 29,969 $ 17,538 $ 907 $ (2,447 ) $ 4,387 $ (2,329 ) $ 1,847 $ 1,938 Revenues, net of interest expense Provision (benefit) for income taxes Income (loss) from continuing operations(1) Six Months Ended June30, In millions of dollars 2009 2008 2009 2008 2009 2008 Regional Consumer Banking $ 11,376 $ 13,855 $ (57 ) $ 878 $ 801 $ 2,322 Institutional Clients Group 24,153 20,020 4,756 2,497 9,939 5,759 Subtotal Citicorp 35,529 33,875 4,699 3,375 10,740 8,081 Citi Holdings 19,202 (2,439 ) (2,974 ) (9,093 ) (3,977 ) (14,375 ) Corporate/Other (241 ) (1,741 ) 17 (615 ) (682 ) (1,221 ) Total $ 54,490 $ 29,695 $ 1,742 $ (6,333 ) $ 6,081 $ (7,515 ) (1) Includes pretax provisions for credit losses and for benefits and claims in Regional Consumer Banking results of $2.0billion and $1.4billion, in ICG results of $0.8billion and $0.4billion in Citi Holdings results of $9.9billion and $5.3billion for the second quarters of 2009 and 2008, respectively. Includes pretax provisions for credit losses and for benefits and claims in Regional Consumer Banking results of $3.8billion and $2.7billion, ICG results of $1.2billion and $0.5billion in Citi Holdings results of $17.9billion and $9.8billion for the six months of 2009 and 2008, respectively. (2) Identifiable assets at June30, 2009 include assets of discontinued operations held for sale of $19.4billion recorded in Corporate/Other. |
INTEREST REVENUE AND EXPENSE
INTEREST REVENUE AND EXPENSE (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
INTEREST REVENUE AND EXPENSE | 4.INTEREST REVENUE AND EXPENSE For the three- and six-month periods ended June30, 2009 and 2008, interest revenue and expense consisted of the following: Three Months Ended June30, Six Months Ended June30, In millions of dollars 2009 2008(1) 2009 2008(1) Interest revenue Loan interest, including fees $ 11,929 $ 15,941 $ 24,784 $ 32,355 Deposits at interest with banks 377 761 813 1,537 Federal funds sold and securities purchased under agreements to resell 794 2,370 1,679 5,536 Investments, including dividends 3,435 2,548 6,611 5,235 Trading account assets(2) 2,921 4,634 5,872 9,425 Other interest 215 1,083 495 2,410 Total interest revenue $ 19,671 $ 27,337 $ 40,254 $ 56,498 Interest expense Deposits $ 2,840 $ 5,082 $ 5,688 $ 11,276 Federal funds purchased and securities loaned or sold under agreements to repurchase 931 2,947 2,035 6,838 Trading account liabilities(2) 69 450 177 779 Short-term borrowing 315 961 778 2,309 Long-term debt 2,687 3,911 5,821 8,222 Total interest expense $ 6,842 $ 13,351 $ 14,499 $ 29,424 Net interest revenue $ 12,829 $ 13,986 $ 25,755 $ 27,074 Provision for loan losses 12,233 6,983 22,148 12,560 Net interest revenue after provision for loan losses $ 596 $ 7,003 $ 3,607 $ 14,514 (1) Reclassified to conform to the current period's presentation. (2) Interest expense on trading account liabilities of the ICG is reported as a reduction of interest revenue for Trading account assets. |
COMMISSIONS AND FEES
COMMISSIONS AND FEES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
COMMISSIONS AND FEES | 5.COMMISSIONS AND FEES Commissions and fees revenue includes charges to customers for credit and bank cards, including transaction-processing fees and annual fees; advisory and equity and debt underwriting services; lending and deposit-related transactions, such as loan commitments, standby letters of credit, and other deposit and loan servicing activities; investment management-related fees, including brokerage services, and custody and trust services; and insurance fees and commissions. The following table presents commissions and fees revenue for the three and six months ended June30, 2009 and 2008: Three Months Ended June30, Six Months Ended June30, In millions of dollars 2009 2008(1) 2009 2008(1) Loan servicing(2) $ 1,367 $ 1,393 $ 1,563 $ 1,107 Credit cards and bank cards 1,000 997 1,977 1,792 Investment banking 1,071 1,186 1,885 2,391 Smith Barney 321 744 836 1,507 ICG trading-related 475 600 822 1,302 Other Consumer 324 320 612 635 Transaction services 327 364 643 717 Checking-related 249 298 512 585 Other ICG 80 114 188 244 Primerica 76 107 149 217 Corporate finance(3) 171 (389 ) 421 (3,500 ) Other (24 ) 65 (3 ) 143 Total commissions and fees $ 5,437 $ 5,799 $ 9,605 $ 7,140 (1) Reclassified to conform to the current period's presentation. (2) Includes fair value adjustments on mortgage servicing assets. The mark-to-market on the underlying economic hedges of the MSRs is included in Other revenue. (3) Includes write-downs of approximately $237million for the second quarter of 2009 and $484million for the six months ended June30, 2009, and $428million for the second quarter of 2008 and $3.5billion for the six months ended June30, 2008, net of underwriting fees on funded and unfunded highly leveraged finance commitments. Write-downs were recorded on all highly leveraged finance commitments where there was value impairment, regardless of funding date. |
RETIREMENT BENEFITS
RETIREMENT BENEFITS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
RETIREMENT BENEFITS | 6.RETIREMENT BENEFITS The Company has several non-contributory defined benefit pension plans covering U.S. employees and has various defined benefit pension and termination indemnity plans covering employees outside the United States. The principal U.S. defined benefit plan, which formerly covered substantially all U.S. employees, is closed to new entrants and, effective January1, 2008, no longer accrues benefits for most employees. Employees satisfying certain age and service requirements remain covered by a prior final pay formula. The Company also offers post-retirement health care and life insurance benefits to certain eligible U.S. retired employees, as well as to certain eligible employees outside the United States. For information on the Company's Retirement Benefit Plans and Pension Assumptions, see Citigroup's 2008 Annual Report on Form10-K. The following tables summarize the components of the net expense recognized in the Consolidated Statement of Income for the three and six months ended June30, 2009 and 2008. Net Expense (Benefit) Three Months Ended June30, PensionPlans Postretirement BenefitPlans U.S.Plans(1) PlansOutsideU.S. U.S.Plans PlansOutsideU.S. In millions of dollars 2009 2008 2009 2008 2009 2008 2009 2008 Benefits earned during the period $ 6 $ 7 $ 34 $ 52 $ $ 1 $ 6 $ 12 Interest cost on benefit obligation 163 165 74 99 15 15 22 30 Expected return on plan assets (229 ) (234 ) (84 ) (122 ) (3 ) (3 ) (20 ) (29 ) Amortization of unrecognized: Net transition obligation (1 ) 1 Prior service cost (benefit) (2 ) 2 1 Net actuarial loss 2 18 4 5 8 Net expense (benefit) $ (60 ) $ (62 ) $ 43 $ 35 $ 12 $ 13 $ 13 $ 21 Six Months Ended June30, PensionPlans Postretirement BenefitPlans U.S.Plans(1) PlansOutsideU.S. U.S.Plans PlansOutsideU.S. In millions of dollars 2009 2008 2009 2008 2009 2008 2009 2008 Benefits earned during the period $ 12 $ 15 $ 71 $ 103 $ $ 1 $ 13 $ 19 Interest cost on benefit obligation 326 329 144 182 30 30 43 50 Expected return on plan assets (458 ) (467 ) (162 ) (250 ) (5 ) (5 ) (38 ) (57 ) Amortization of unrecognized: Net transition obligation (1 ) 1 Prior service cost (benefit) (1 ) (1 ) 2 2 Net actuarial loss 2 33 13 1 9 11 Net expense (benefit) $ (119 ) $ (124 ) $ 87 $ 51 $ 26 $ 26 $ 27 $ 23 (1) The U.S. plans exclude nonqualified pension plans, for which the net expense |
RESTRUCTURING
RESTRUCTURING (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
RESTRUCTURING | 7.RESTRUCTURING In the fourth quarter of 2008, Citigroup recorded a pretax restructuring expense of $1.581billion related to the implementation of a Company-wide re-engineering plan. For the three months ended June30, 2009, Citigroup recorded a pretax net restructuring release of $32million composed of a gross charge of $25million and a credit of $57million due to changes in estimates. The charges related to the 2008 Re-engineering Projects Restructuring Initiative are reported in the Restructuring line on the Company's Consolidated Statement of Income and are recorded in each segment. In 2007, the Company completed a review of its structural expense base in a Company-wide effort to create a more streamlined organization, reduce expense growth, and provide investment funds for future growth initiatives. As a result of this review, a pretax restructuring charge of $1.4billion was recorded in Corporate/Other during the first quarter of 2007. Additional net charges of $151million were recognized in subsequent quarters throughout 2007, and net releases of $31 million and $3million in 2008 and 2009, due to changes in estimates. The charges related to the 2007 Structural Expense Review Restructuring Initiative are reported in the Restructuring line on the Company's Consolidated Statement of Income. The primary goals of the 2008 Re-engineering Projects Restructuring Initiative and the 2007 Structural Expense Review Restructuring Initiative were: eliminate layers of management/improve workforce management; consolidate certain back-office, middle-office and corporate functions; increase the use of shared services; expand centralized procurement; and continue to rationalize operational spending on technology. The implementation of these restructuring initiatives also caused certain related premises and equipment assets to become redundant. The remaining depreciable lives of these assets were shortened, and accelerated depreciation charges began in the second quarter of 2007 and fourth quarter of 2008 for the 2007 and 2008 initiatives, respectively, in addition to normal scheduled depreciation. The following tables detail the Company's restructuring reserves. 2008 Re-engineering Projects Restructuring Charges Severance Contract termination costs Asset write-downs(3) Employee termination cost Total Citigroup In millions of dollars SFAS112(1) SFAS146(2) Total Citigroup (pretax) Original restructuring charge $ 1,254 $ 79 $ 55 $ 123 $ 19 $ 1,530 Utilization (114 ) (3 ) (2 ) (100 ) (219 ) Balance at December31, 2008 $ 1,140 $ 76 $ 53 $ 23 $ 19 $ 1,311 Additional charge $ 14 $ 6 $ 4 $ 5 $ $ 29 Foreign exchange (14 ) (12 ) (1 ) (27 ) Utilization (541 ) (76 ) (11 ) (7 ) (5 ) (640 ) Changes in estimates (38 ) (1 ) (39 ) Balance at March31, 2009 $ 561 $ 5 $ 46 $ 9 $ 13 $ 634 |
EARNINGS PER SHARE
EARNINGS PER SHARE (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
EARNINGS PER SHARE | 8.EARNINGS PER SHARE The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the three and six months ended June30, 2009 and 2008: Three Months Ended June30, Six Months Ended June30, In millions, except per share amounts 2009 2008(1) 2009 2008(1) Income (loss) before attribution of noncontrolling interests $ 4,387 $ (2,329 ) $ 6,081 $ (7,515 ) Noncontrolling interest (34 ) 72 (50 ) 56 Net income (loss) from continuing operations (for EPS purposes) $ 4,421 $ (2,401 ) $ 6,131 $ (7,571 ) Income (loss) from discontinued operations, net of taxes (142 ) (94 ) (259 ) (35 ) Citigroup's net income (loss) $ 4,279 $ (2,495 ) $ 5,872 $ (7,606 ) Preferred dividends (1,495 ) (361 ) (2,716 ) (444 ) Impact on the conversion price reset related to the $12.5billion convertible preferred stock private issuance(2) (1,285 ) Preferred stock SeriesH discount accretion (54 ) (107 ) Income (loss) available to common stockholders for basic EPS(3) 2,730 (2,856 ) 1,764 (8,050 ) Effect of dilutive securities 270 270 540 336 Income (loss) available to common stockholders for diluted EPS(4) $ 3,000 $ (2,586 ) $ 2,304 $ (7,714 ) Weighted average common shares outstanding applicable to basic EPS 5,399.5 5,287.4 5,392.3 5,186.5 Effect of dilutive securities: Convertible securities 568.3 489.2 568.3 489.2 Options 0.2 0.6 Adjusted weighted average common shares outstanding applicable to diluted EPS(3) 5,967.8 5,776.8 5,960.6 5,676.3 Basic earnings per share(3)(4) Income (loss) from continuing operations $ 0.51 $ (0.53 ) $ 0.36 $ (1.56 ) Discontinued operations (0.02 ) (0.02 ) (0.05 ) (0.01 ) Net income (loss) $ 0.49 $ (0.55 ) $ 0.31 $ (1.57 ) Diluted earnings per share(3)(4) Income (loss) from continuing operations $ 0.51 $ (0.53 ) $ 0.36 $ (1.56 ) Discontinued operations (0.02 ) (0.02 ) (0.05 ) (0.01 ) Net income (loss) $ 0.49 $ (0.55 ) $ 0.31 $ (1.57 ) (1) The Company adopted FSP EITF03-6-1(ASC 260-10-45 to 65)on January1, 2009. All prior periods have been restated to conform to the current period's presentation. (2) The six months ended June30, 2009 income available to common shareholders includes a reduction of $1,285million related to the conversion price reset pursuant to Citigroup's prior agreement with the purchasers of $12.5billion convertible preferred stock issued in a private offering in January 2008. The conversion price was reset from $31.62 per share to $26.35 per share. (3) Due to the net loss available to common shareholders for Basic EPS in the three |
TRADING ACCOUNT ASSETS AND LIAB
TRADING ACCOUNT ASSETS AND LIABILITIES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
TRADING ACCOUNT ASSETS AND LIABILITIES | 9.TRADING ACCOUNT ASSETS AND LIABILITIES Trading account assets and liabilities, at fair value, consisted of the following at June30, 2009 and December31, 2008: In millions of dollars June30, 2009 December31, 2008 Trading account assets Trading mortgage-backed securities Agency guaranteed $ 27,174 $ 32,981 Prime 1,051 1,416 Alt-A 1,307 913 Subprime 10,583 14,552 Non-U.S. residential 1,586 2,447 Commercial 3,635 2,501 Total Trading mortgage-backed securities $ 45,336 $ 54,810 U.S. Treasury and Federal Agencies U.S. Treasuries $ 9,763 $ 7,370 Agency and direct obligations 4,290 4,017 Total U.S. Treasury and Federal Agencies $ 14,053 $ 11,387 State and municipal securities $ 6,056 $ 9,510 Foreign government securities 57,670 57,422 Corporate 55,780 54,654 Derivatives(1) 73,158 115,289 Equity securities 39,932 48,503 Other debt securities 33,052 26,060 Total trading account assets $ 325,037 $ 377,635 Trading account liabilities Securities sold, not yet purchased $ 55,764 $ 50,693 Derivatives(1) 63,548 116,785 Total trading account liabilities $ 119,312 $ 167,478 (1) Presented net, pursuant to master netting agreements. See Note16 to the Consolidated Financial Statements, Derivatives Activities, for a discussion regarding the accounting and reporting for derivatives. |
INVESTMENTS
INVESTMENTS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
INVESTMENTS | 10.INVESTMENTS In millions of dollars June30, 2009 December31, 2008 Securities available-for-sale $ 191,238 $ 175,189 Debt securities held-to-maturity(1) 59,622 64,459 Non-marketable equity securities carried at fair value(2) 7,935 9,262 Non-marketable equity securities carried at cost(3) 7,962 7,110 Total investments $ 266,757 $ 256,020 (1) Recorded at amortized cost. (2) Unrealized gains and losses for non-marketable equity securities carried at fair value are recognized in earnings. (3) Non-marketable equity securities carried at cost primarily consist of shares issued by the Federal Reserve Bank, Federal Home Loan Bank, foreign central banks and various clearing houses of which Citigroup is a member. Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale (AFS) at June30, 2009 and December31, 2008 were as follows: June30, 2009 December31, 2008(1) In millions of dollars Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Debt securities available-for-sale: Mortgage-backed securities U.S. government agency guaranteed $ 28,289 $ 377 $ 225 $ 28,441 $ 23,527 $ 261 $ 67 $ 23,721 Prime 8,017 86 2,070 6,033 8,475 3 2,965 5,513 Alt-A 483 52 12 523 54 9 45 Subprime 35 18 17 38 21 17 Non-U.S. residential 286 7 279 185 2 187 Commercial 947 3 161 789 519 134 385 Total mortgage-backed securities $ 38,057 $ 518 $ 2,493 $ 36,082 $ 32,798 $ 266 $ 3,196 29,868 U.S. Treasury and federal agency securities U.S. Treasury 7,730 10 129 7,611 3,465 125 3,590 Agency obligations 16,738 35 96 16,677 20,237 215 77 20,375 Total U.S. Treasury and federal agency securities $ 24,468 $ 45 $ 225 $ 24,288 $ 23,702 $ 340 $ 77 $ 23,965 State and municipal 19,890 93 2,305 17,678 18,156 38 4,370 13,824 Foreign government 74,590 914 350 75,154 79,505 945 408 80,042 Corporate 21,388 266 333 21,321 10,646 65 680 10,031 Other debt securities 11,387 123 620 10,890 11,784 36 224 11,596 Total debt securities available- for-sale 189,780 1,959 6,326 185,413 176,591 1,690 8,955 169,326 Marketable equity securities available-for-sale 4,339 2,299 813 5,825 5,768 554 459 5,863 To |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
GOODWILL AND INTANGIBLE ASSETS | 11.GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in goodwill during the six months ended June30, 2009 were as follows: In millions of dollars Goodwill Balance at December31, 2008 $ 27,132 Foreign exchange translation (844 ) Purchase accounting adjustments and other 122 Balance at March31, 2009 $ 26,410 Morgan Stanley Smith Barney joint venture (1,146 ) Estimated impact from the Sale of Nikko Cordial Securities, reclassified as Assets of discontinued operations held for sale (533 ) Foreign exchange translation 847 Balance at June30, 2009 $ 25,578 Identification of New Reporting Units The changes in the organizational structure resulted in the creation of new reporting segments. As a result, commencing with the second quarter 2009, the Company has identified new reporting units as required under SFAS142, Goodwill and Other Intangible Assets. Goodwill affected by the reorganization has been reassigned from ten reporting units to nine, using a fair value approach. Subsequent to June30, 2009, goodwill will be allocated to disposals and tested for impairment under the new reporting units. During the first six months of 2009, no goodwill was written off due to impairment. While no impairment was noted in step one of the Company's reporting unit impairment test, goodwill for the new Latin America Regional Consumer Banking and Local Consumer LendingCards reporting units, may be particularly sensitive to further deterioration in economic conditions. If the future were to differ adversely from management's best estimate of key economic assumptions and associated cash flows were to decrease by a small margin, the Company could potentially experience future material impairment charges with respect to the $1,265million and $4,781million of goodwill remaining in our Latin America Regional Consumer Banking and Local Consumer LendingCards reporting units, respectively. Any such charges, by themselves, would not negatively affect the Company's Tier1, Tier1 Common and Total Capital regulatory ratios, its Tangible Common Equity or the Company's liquidity position. The following tables present the Company's goodwill balances by reporting unit and by segment at June30, 2009: In millions of dollars June30,2009 By Reporting Unit North America Regional Consumer Banking $ 2,406 EMEA Regional Consumer Banking 306 Asia Regional Consumer Banking 5,392 Latin America Regional Consumer Banking 1,265 Securities and Banking 8,516 Transaction Services 1,561 Brokerage and Asset Management 1,299 Local Consumer LendingCards 4,781 Local Consumer LendingOther 52 Total $ 25,578 By Segment Regional Consumer Banking $ 9,370 Institutional Clients Group 10,077 Citi Holdings 6,131 Total $ 25,578 Intangible Assets The components of intangible assets were as follows: June30, 2009 December31, 2008 In millions of dollars Gross carrying amount Accumulated a |
DEBT
DEBT (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
DEBT | 12.DEBT Short-Term Borrowings Short-term borrowings consist of commercial paper and other borrowings as follows: In millions of dollars June30, 2009 December31, 2008 Commercial paper Citigroup FundingInc. $ 27,862 $ 28,654 Other Citigroup subsidiaries 633 471 $ 28,495 $ 29,125 Other short-term borrowings 73,399 97,566 Total short-term borrowings $ 101,894 $ 126,691 Borrowings under bank lines of credit may be at interest rates based on LIBOR, CD rates, the prime rate, or bids submitted by the banks. Citigroup pays commitment fees for its lines of credit. Some of Citigroup's non-bank subsidiaries have credit facilities with Citigroup's subsidiary depository institutions, including Citibank, N.A. Borrowings under these facilities must be secured in accordance with Section23A of the Federal Reserve Act. Citigroup Global Markets HoldingsInc. (CGMHI) has committed financing with unaffiliated banks. At June30, 2009, CGMHI had drawn down the full $1.175billion available under these facilities, of which $725million is guaranteed by Citigroup. CGMHI has bilateral facilities totaling $500million with unaffiliated banks with maturities occurring on various dates in the second half of 2009. It also has substantial borrowing agreements consisting of facilities that CGMHI has been advised are available, but where no contractual lending obligation exists. These arrangements are reviewed on an ongoing basis to ensure flexibility in meeting CGMHI's short-term requirements. Long-Term Debt In millions of dollars June30, 2009 December31, 2008 Citigroup parent company $ 192,295 $ 192,290 Other Citigroup subsidiaries(1) 96,497 109,306 Citigroup Global Markets HoldingsInc. (CGMHI) 15,134 20,623 Citigroup FundingInc. (CFI)(2) 44,120 37,374 Total long term debt $ 348,046 $ 359,593 (1) At June30, 2009 and December31, 2008, collateralized advances from the Federal Home Loan Bank are $38.5billion and $67.4billion, respectively. (2) Includes Principal-Protected Trust Securities (Safety First Trust Securities) with carrying values of $494million issued by Safety First Trust Series2006-1, 2007-1, 2007-2, 2007-3, 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 (collectively, the "Safety First Trusts") at June30, 2009 and $452million issued by Safety First Trust Series2006-1, 2007-1, 2007-2, 2007-3, 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5 and 2008-6 at December31, 2008. CFI owns all of the voting securities of the Safety First Trusts. The Safety First Trusts have no assets, operations, revenues or cash flows other than those related to the issuance, administration, and repayment of the Safety First Trust Securities and the Safety First Trusts' common securities. The Safety First Trusts' obligations under the Safety First Trust Securities are fully and unconditionally guaranteed by CFI, and CFI's guarantee obligations are fully and unconditionally guaranteed by Citigroup. CGMHI has a syndicated f |
PREFERRED STOCK
PREFERRED STOCK (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
PREFERRED STOCK | 13.PREFERRED STOCK The following table summarizes the Company's preferred stock outstanding at June30, 2009 and December31, 2008: Carrying value (in millions of dollars) Convertible to approximate number of Citigroup common shares Redemption price per depositary share / preference share Dividend rate Number of depositary shares June30, 2009 December31, 2008 Series A1(1) 7.000 % $ 50 137,600,000 261,083,726 $ 6,880 $ 6,880 Series B1(1) 7.000 % 50 60,000,000 113,844,648 3,000 3,000 Series C1(1) 7.000 % 50 20,000,000 37,948,216 1,000 1,000 Series D1(1) 7.000 % 50 15,000,000 28,461,162 750 750 SeriesE(2) 8.400 % 1,000 6,000,000 6,000 6,000 SeriesF(3) 8.500 % 25 81,600,000 2,040 2,040 SeriesG(4) 8.000 % 1,000,000 7,059 3,529 SeriesH(5) 5.000 % 1,000,000 25,000 23,835 23,727 SeriesI(6) 8.000 % 1,000,000 20,000 19,513 19,513 Series J1(1) 7.000 % 50 9,000,000 17,076,698 450 450 Series K1(1) 7.000 % 50 8,000,000 15,179,287 400 400 Series L2(1) 7.000 % 50 100,000 189,742 5 5 Series N1(1) 7.000 % 50 300,000 569,224 15 15 SeriesT(7) 6.500 % 50 63,373,000 93,940,986 3,169 3,169 SeriesAA(8) 8.125 % 25 148,600,000 3,715 3,715 568,293,689 $ 74,301 $ 70,664 (1) Issued on January23, 2008 as depositary shares, each representing a 1/1,000thinterest in a share of the corresponding series of Non-Cumulative Convertible Preferred Stock. Redeemable in whole or in part on or after February15, 2015. Under the terms of pre-existing conversion price reset agreements with holders of SeriesA, B, C, D, J, K, L1 and N (the "Old Preferred Stock"), on February17, 2009, Citigroup exchanged shares of new preferred stock (the "New Preferred Stock") for an equal number of shares of Old Preferred Stock. The terms and conditions of the New Preferred Stock were identical in all material respects to the terms and conditions of the Old Preferred Stock, except that the Conversion Price and Conversion Rate of the New Preferred Stock were reset to $26.3517 and 1,897.4108, respectively. All shares of the Old Preferred Stock were canceled. The dividend of $0.88 per depositary share is payable quarterly when, as and if declared by the Company's Board of Directors. Redemption is subject to a capital replacement covenant. (2) Issued on April28, 2008 as depositary shares, each representing a 1/25thinterest in a share of the corresponding series of Fixed Rate/Floating Rate Non-Cumulative Preferred Stock. Redeemable in whole or in part on or after April30, 2018. Dividends are payable semi-annually for the first 10years until April30, 2018 at $42.00 per depositary share and thereafter quarterly at a floating rate when, as and if declared |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 14.CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in each component of Accumulated Other Comprehensive Income (Loss) (AOCI) for the first and second quarters of 2009 were as follows: In millions of dollars Net unrealized gains (losses) on investment securities Foreign currency translation adjustment, net of hedges Cash flow hedges Pension liability adjustments Accumulated other comprehensive income (loss) Balance, December31, 2008 $ (9,647 ) $ (7,744 ) $ (5,189 ) $ (2,615 ) $ (25,195 ) Cumulative effect of accounting change (FSP FAS115-2 /ASC 320-10-65-1) (413 ) (413 ) Balance, January1, 2009 $ (10,060 ) $ (7,744 ) $ (5,189 ) $ (2,615 ) $ (25,608 ) Decrease (increase) in net unrealized gains (losses) on investment securities, net of taxes(1)(3) 31 31 Less: Reclassification adjustment for gains included in net income, net of taxes (11 ) (11 ) FX translation adjustment, net of taxes(2) (2,974 ) (2,974 ) Cash flow hedges, net of taxes(3) 1,483 1,483 Pension liability adjustment, net of taxes 66 66 Change $ 20 $ (2,974 ) $ 1,483 $ 66 $ (1,405 ) Citigroup Stockholders AOCI balance, March31, 2009 $ (10,040 ) $ (10,718 ) $ (3,706 ) $ (2,549 ) $ (27,013 ) Decrease (increase) in net unrealized gains (losses) on investment securities, net of taxes(1)(3) 2,890 2,890 Less: Reclassification adjustment for gains included in net income, net of taxes 95 95 FX translation adjustment, net of taxes(4) 2,406 2,406 Cash flow hedges, net of taxes(3) 41 41 Pension liability adjustment, net of taxes (62 ) (62 ) Change $ 2,985 $ 2,406 $ 41 $ (62 ) $ 5,370 Citigroup Stockholders AOCI balance, June30, 2009 $ (7,055 ) $ (8,312 ) $ (3,665 ) $ (2,611 ) $ (21,643 ) (1) Primarily related to AFS municipal and other debt securities. (2) Reflects, among other items, the movements in the Japanese yen, Korean won, Euro, Pound Sterling, Polish Zloty, Mexican peso and the Singapore dollar against the U.S. dollar, and changes in related tax effects. (3) Decrease (increase) in net unrealized gains (losses) on investment securities, net of taxes includes the change in the hedged senior debt securities retained from the sale of a portfolio of highly leveraged loans. The offsetting change in the corresponding cash flow hedge is reflected in Cash Flow hedges, net of taxes. (4) Reflects, among other items, the movements in the British Pound, Mexican Peso, Japanese Yen, Australian Dollar, Korean Won, and the Euro against the U.S. dollar, and changes in related tax effects. |
SECURITIZATIONS AND VARIABLE IN
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | 15.SECURITIZATIONS AND VARIABLE INTEREST ENTITIES Overview Citigroup and its subsidiaries are involved with several types of off-balance sheet arrangements, including special purpose entities (SPEs). See Note1 to the Consolidated Financial Statements for a discussion of impending accounting changes to SFAS140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (SFAS140 /ASC 860), and FASB Interpretation No.46, "Consolidation of Variable Interest Entities (revised December 2003) (FIN46 (R)/ASC 810-10)." Uses of SPEs An SPE is an entity designed to fulfill a specific limited need of the company that organized it. The principal uses of SPEs are to obtain liquidity and favorable capital treatment by securitizing certain of Citigroup's financial assets, to assist clients in securitizing their financial assets, and to create investment products for clients. SPEs may be organized in many legal forms including trusts, partnerships or corporations. In a securitization, the company transferring assets to an SPE converts those assets into cash before they would have been realized in the normal course of business, through the SPE's issuance of debt and equity instruments, certificates, commercial paper and other notes of indebtedness, which are recorded on the balance sheet of the SPE and not reflected on the transferring company's balance sheet, assuming applicable accounting requirements are satisfied. Investors usually have recourse to the assets in the SPE and often benefit from other credit enhancements, such as a collateral account or over collateralization in the form of excess assets in the SPE, or from a liquidity facility, such as a line of credit, liquidity put option or asset purchase agreement. The SPE can typically obtain a more favorable credit rating from rating agencies than the transferor could obtain for its own debt issuances, resulting in less expensive financing costs. The SPE may also enter into derivative contracts in order to convert the yield or currency of the underlying assets to match the needs of the SPE investors, or to limit or change the credit risk of the SPE. Citigroup may be the provider of certain credit enhancements as well as the counterparty to any related derivative contracts. SPEs may be Qualifying SPEs (QSPEs) or Variable Interest Entities (VIEs) or neither. Qualifying SPEs QSPEs are a special class of SPEs defined in SFAS140 /ASC 860-40-15. QSPEs have significant limitations on the types of assets and derivative instruments they may own or enter into and the types and extent of activities and decision-making they may engage in. Generally, QSPEs are passive entities designed to purchase assets and pass through the cash flows from those assets to the investors in the QSPE. QSPEs may not actively manage their assets through discretionary sales and are generally limited to making decisions inherent in servicing activities and issuance of liabilities. QSPEs are generally exempt from consolidation by the transferor of assets to the QSPE and any investor or counterparty. Variable Interest Entities VIEs are entities defined in FIN46(R)/ASC 81 |
DERIVATIVES ACTIVITIES
DERIVATIVES ACTIVITIES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
DERIVATIVES ACTIVITIES | 16.DERIVATIVES ACTIVITIES In the ordinary course of business, Citigroup enters into various types of derivative transactions. These derivative transactions include: Futures and forward contracts which are commitments to buy or sell at a future date a financial instrument, commodity or currency at a contracted price and may be settled in cash or through delivery. Swap contracts which are commitments to settle in cash at a future date or dates that may range from a few days to a number of years, based on differentials between specified financial indices, as applied to a notional principal amount. Option contracts which give the purchaser, for a fee, the right, but not the obligation, to buy or sell within a limited time a financial instrument, commodity or currency at a contracted price that may also be settled in cash, based on differentials between specified indices or prices. Citigroup enters into these derivative contracts relating to interest rate, foreign currency, commodity, and other market/credit risks for the following reasons: Trading PurposesCustomer NeedsCitigroup offers its customers derivatives in connection with their risk-management actions to transfer, modify or reduce their interest rate, foreign exchange and other market/ credit risks or for their own trading purposes. As part of this process, Citigroup considers the customers' suitability for the risk involved, and the business purpose for the transaction. Citigroup also manages its derivative-risk positions through offsetting trade activities, controls focused on price verification, and daily reporting of positions to senior managers. Trading PurposesOwn AccountCitigroup trades derivatives for its own account, and as an active market maker. Trading limits and price verification controls are key aspects of this activity. HedgingCitigroup uses derivatives in connection with its risk-management activities to hedge certain risks or reposition the risk profile of the Company. For example, Citigroup may issue fixed-rate long-term debt and then enter into a receive-fixed, pay-variable-rate interest rate swap with the same tenor and notional amount to convert the interest payments to a net variable-rate basis. This strategy is the most common form of an interest rate hedge, as it minimizes interest cost in certain yield curve environments. Derivatives are also used to manage risks inherent in specific groups of on-balance sheet assets and liabilities, including investments, corporate and consumer loans, deposit liabilities, as well as other interest-sensitive assets and liabilities. In addition, foreign- exchange contracts are used to hedge non-U.S. dollar denominated debt, foreign-currency-denominated available-for-sale securities, net capital exposures and foreign-exchange transactions. Derivatives may expose Citigroup to market, credit or liquidity risks in excess of the amounts recorded on the Consolidated Balance Sheet. Market risk on a derivative product is the exposure created by potential fluctuations in interest rates, foreign-exchange rates and other factors and is a function of the type of product, the volume of transactions, the te |
FAIR-VALUE MEASUREMENT
FAIR-VALUE MEASUREMENT (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FAIR-VALUE MEASUREMENT (SFAS 157/ASC 820-10) | 17.FAIR-VALUE MEASUREMENT (SFAS157/ASC 820-10) Effective January1, 2007, the Company adopted SFAS157(ASC 820-10). SFAS157(ASC 820-10) defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair-value measurements. SFAS157(ASC 820-10), among other things, requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, SFAS157(ASC 820-10) precludes the use of block discounts when measuring the fair value of instruments traded in an active market; such discounts were previously applied to large holdings of publicly traded equity securities. It also requires recognition of trade-date gains related to certain derivative transactions whose fair value has been determined using unobservable market inputs. This guidance supersedes the guidance in Emerging Issues Task Force Issue No.02-3, "Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities" (EITF Issue 02-3), which prohibited the recognition of trade-date gains for such derivative transactions when determining the fair value of instruments not traded in an active market. As a result of the adoption of SFAS157(ASC 820-10), the Company made some amendments to the techniques used in measuring the fair value of derivative and other positions. These amendments change the way that the probability of default of a counterparty is factored into the valuation of derivative positions, include for the first time the impact of Citigroup's own credit risk on derivatives and other liabilities measured at fair value, and also eliminate the portfolio servicing adjustment that is no longer necessary under SFAS157(ASC 820-10). Fair-Value Hierarchy SFAS157(ASC 820-10-35-37 to 35-55) specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: Level1Quoted prices for identical instruments in active markets. Level2Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level3Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the amount of adjustment necessary when comparing similar transactions are all factors in determining the liquidity of markets and the relevance of observed prices in those markets. Determination of Fair Value For assets |
FAIR-VALUE ELECTIONS
FAIR-VALUE ELECTIONS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FAIR-VALUE ELECTIONS (SFAS 155/ASC 815-15-25, SFAS 156/ASC 860-50-35 and SFAS 159/ASC 825-10) | 18.FAIR-VALUE ELECTIONS (SFAS155/ASC 815-15-25, SFAS156/ASC 860-50-35 and SFAS159/ASC 825-10) Under SFAS159 (ASC 825-10), the Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in earnings. After the initial adoption, the election is made upon the acquisition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair-value election may not be revoked once an election is made. Additionally, the transition provisions of SFAS159 (ASC 825-10) permit a one-time election for existing positions at the adoption date with a cumulative-effect adjustment included in opening retained earnings and future changes in fair value reported in earnings. The Company also has elected the fair-value accounting provisions permitted under SFAS155 (ASC 815-15-25) and SFAS156 (ASC 860-50-35) for certain assets and liabilities. In accordance with SFAS155 (ASC 815-15-25), which was primarily adopted on a prospective basis, hybrid financial instruments, such as structured notes containing embedded derivatives that otherwise would require bifurcation, as well as certain interest-only instruments, may be accounted for at fair value if the Company makes an irrevocable election to do so on an instrument-by-instrument basis. The changes in fair value are recorded in current earnings. Additional discussion regarding the applicable areas in which SFAS155 (ASC 815-15-25) was adopted is presented in Note17 to the Consolidated Financial Statements. SFAS156 (ASC 860-50-35) requires all servicing rights to be recognized initially at fair value. At its initial adoption, the standard permits a one-time irrevocable election to re-measure each class of servicing rights at fair value, with the changes in fair value recorded in current earnings. The classes of servicing rights are identified based on the availability of market inputs used in determining their fair values and the methods for managing their risks. The Company has elected fair-value accounting for its mortgage and student loan classes of servicing rights. The impact of adopting this standard was not material. See Note15 to the Consolidated Financial Statements for further discussions regarding the accounting and reporting of mortgage servicing rights. The following table presents, as of June30, 2009, the fair value of those positions selected for fair-value accounting in accordance with SFAS159 (ASC 825-10), SFAS156 (ASC 860-50-35), and SFAS155 (ASC 815-15-25), as well as the changes in fair value for the six months ended June30, 2009 and June30, 2008. Fair Value at Changes in fair value gains (losses) for six months ended June30, In millions of dollars June30, 2009 December31, 2008 2009 2008(1) Assets Federal funds sold and securities borrowed or purchased under agreements to resell Selected portfolios of securities purchased under agreements to resell, securities borrowed(2) $ 73,755 $ 70,305 $ (1,256 ) $ 120 Trading |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FAIR VALUE OF FINANCIAL INSTRUMENTS (SFAS 107/ASC 825-10-50) | 19.FAIR VALUE OF FINANCIAL INSTRUMENTS (SFAS107/ASC 825-10-50) Estimated Fair Value of Financial Instruments The table below presents the carrying value and fair value of Citigroup's financial instruments. The disclosure excludes leases, affiliate investments, pension and benefit obligations and insurance policy claim reserves. In addition, contract-holder fund amounts exclude certain insurance contracts. Also as required, the disclosure excludes the effect of taxes, any premium or discount that could result from offering for sale at one time the entire holdings of a particular instrument, excess fair value associated with deposits with no fixed maturity and other expenses that would be incurred in a market transaction. In addition, the table excludes the values of non-financial assets and liabilities, as well as a wide range of franchise, relationship and intangible values (but includes mortgage servicing rights), which are integral to a full assessment of Citigroup's financial position and the value of its net assets. The fair value represents management's best estimates based on a range of methodologies and assumptions. The carrying value of short-term financial instruments not accounted for at fair value under SFAS155(ASC 815-15-25) or SFAS159(ASC 825-10), as well as receivables and payables arising in the ordinary course of business, approximates fair value because of the relatively short period of time between their origination and expected realization. Quoted market prices are used when available for investments and for both trading and end-user derivatives, as well as for liabilities, such as long-term debt, with quoted prices. For performing loans not accounted for at fair value under SFAS155(ASC 815-15-25) or SFAS159(ASC 825-10), contractual cash flows are discounted at quoted secondary market rates or estimated market rates if available. Otherwise, sales of comparable loan portfolios or current market origination rates for loans with similar terms and risk characteristics are used. For loans with doubt as to collectibility, expected cash flows are discounted using an appropriate rate considering the time of collection and the premium for the uncertainty of the flows. The value of collateral is also considered. For liabilities such as long-term debt not accounted for at fair value under SFAS155(ASC 815-15-25) or SFAS159(ASC 825-10) and without quoted market prices, market borrowing rates of interest are used to discount contractual cash flows. June30, 2009 December31, 2008 In billions of dollars Carrying value Estimated fair value Carrying value Estimated fair value Assets Investments $ 266.8 $ 261.6 $ 256.0 $ 251.9 Federal funds sold and securities borrowed or purchased under agreements to resell 179.5 179.5 184.1 184.1 Trading account assets 325.0 325.0 377.6 377.6 Loans(1) 602.6 601.3 660.9 642.7 Other financial assets(2) 314.4 314.4 316.6 316.6 June30, 2009 December31, 2008 In billions of dollars Carrying v |
GUARANTEES
GUARANTEES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
GUARANTEES | 20.GUARANTEES The Company provides a variety of guarantees and indemnifications to Citigroup customers to enhance their credit standing and enable them to complete a wide variety of business transactions. FASB Interpretation No.45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" (FIN45/ASC 460-10), provides initial measurement and disclosure guidance in accounting for guarantees. FIN45(ASC 460-10) requires that, for certain contracts meeting the definition of a guarantee, the guarantor must recognize, at inception, a liability for the fair value of the obligation undertaken in issuing the guarantee. In addition, the guarantor must disclose the maximum potential amount of future payments the guarantor could be required to make under the guarantee, if there were a total default by the guaranteed parties. The determination of the maximum potential future payments is based on the notional amount of the guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. Such amounts bear no relationship to the anticipated losses, if any, on these guarantees. The following tables present information about the Company's guarantees at June30, 2009 and December31, 2008: Maximum potential amount of future payments In billions of dollars at June30, except carrying value in millions Expire within 1year Expire after 1year Total amount outstanding Carrying value (in millions) 2009 Financial standby letters of credit $ 52.2 $ 50.6 $ 102.8 $ 297.9 Performance guarantees 9.7 5.6 15.3 31.2 Derivative instruments considered to be guarantees 9.1 3.1 12.2 1,393.4 Loans sold with recourse 0.3 0.3 55.2 Securities lending indemnifications(1) 55.3 55.3 Credit card merchant processing(1) 54.2 54.2 Custody indemnifications and other 25.2 25.2 152.8 Total $ 180.5 $ 84.8 $ 265.3 $ 1,930.5 Maximum potential amount of future payments In billions of dollars at December31, except carrying value in millions Expire within 1year Expire after 1year Total amount outstanding Carrying value (in millions) 2008 Financial standby letters of credit $ 31.6 $ 62.6 $ 94.2 $ 289.0 Performance guarantees 9.4 6.9 16.3 23.6 Derivative instruments considered to be guarantees(2) 7.6 7.2 14.8 1,308.4 Guarantees of collection of contractual cash flows(1) 0.3 0.3 Loans sold with recourse 0.3 0.3 56.4 Securities lending indemnifications(1) 47.6 47.6 Credit card merchant processing(1) 56.7 56.7 Custody indemnifications and other 21.6 21.6 149.2 Total $ 152.9 $ 98.9 $ 251.8 $ 1,826.6 (1) The carrying values of guarantees of collections of contractual cash fl |
CONTINGENCIES
CONTINGENCIES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
CONTINGENCIES | 21.CONTINGENCIES The Company is a defendant in numerous lawsuits and other legal proceedings arising out of alleged misconduct in connection with certain matters. In view of the large number of such matters, the uncertainties of the timing and outcome of this type of litigation, the novel issues presented, and the significant amounts involved, it is possible that the ultimate costs of these matters may exceed or be below the Company's litigation reserves. The Company will continue to defend itself vigorously in these cases, and seek to resolve them in the manner management believes is in the best interests of the Company. In addition, in the ordinary course of business, Citigroup and its subsidiaries are defendants or co-defendants or parties in various litigation and regulatory matters incidental to and typical of the businesses in which they are engaged. In the opinion of the Company's management, the ultimate resolution of these legal and regulatory proceedings would not be likely to have a material adverse effect on the consolidated financial condition of the Company but, if involving monetary liability, may be material to the Company's operating results for any particular period. |
CITIBANK, N.A. EQUITY
CITIBANK, N.A. EQUITY (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
CITIBANK, N.A. EQUITY | 22.CITIBANK, N.A. EQUITY Statement of Changes in Equity (Unaudited) Six Months Ended June30, In millions of dollars, except shares 2009 2008 Common stock ($20 par value) Balance, beginning of periodShares: 37,534,553 in 2009 and 2008 $ 751 $ 751 Balance, end of periodShares: 37,534,553 in 2009 and 2008 $ 751 $ 751 Surplus Balance, beginning of period $ 74,767 $ 69,135 Capital contribution from parent company 27,481 55 Employee benefit plans 15 100 Balance, end of period $ 102,263 $ 69,290 Retained earnings Balance, beginning of period $ 21,735 $ 31,915 Adjustment to opening balance, net of taxes(1) 402 Adjusted balance, beginning of period $ 22,137 $ 31,915 Net income (loss) (1,477 ) (1,803 ) Dividends paid 3 (27 ) Other(2) 117 Balance, end of period $ 20,780 $ 30,085 Accumulated other comprehensive income (loss) Balance, beginning of period $ (15,895 ) $ (2,495 ) Adjustment to opening balance, net of taxes(1) (402 ) Adjusted balance, beginning of period $ (16,297 ) $ (2,495 ) Net change in unrealized gains (losses) on investment securities available-for-sale, net of taxes 1,731 (2,234 ) Net change in FX translation adjustment, net of taxes (164 ) 527 Net change in cash flow hedges, net of taxes 737 (402 ) Pension liability adjustment, net of taxes 29 65 Net change in Accumulated other comprehensive income (loss) $ 2,333 $ (2,044 ) Balance, end of period $ (13,964 ) $ (4,539 ) Total Citibank common stockholder's equity and total Citibank stockholder's equity $ 109,830 $ 95,587 Noncontrolling interest Balance, beginning of period $ 1,082 $ 1,266 Net income attributable to noncontrolling interest shareholders 23 56 Dividends paid to noncontrolling interest shareholders (16 ) (11 ) Accumulated other comprehensive incomeNet change in unrealized gains and losses on investments securities, net of tax 1 (12 ) Accumulated other comprehensive incomeNet change in FX translation adjustment, net of tax (40 ) 126 All other (153 ) (10 ) Net change in noncontrolling interest $ (185 ) $ 149 Balance, end of period $ 897 $ 1,415 Total equity $ 110,727 $ 97,002 Comprehensive income (loss) Net income (loss) before attribution of noncontrolling interest $ (1,454 ) $ (1,747 ) Net change in Accumulated other comprehensive income (loss) 2,294 (1,930 ) Total comprehensive income (loss) $ 840 $ (3,677 ) Comprehensive income attributable to the noncontrolling interest (16 ) 170 Comprehensive income attributable to Citibank $ 856 $ (3,847 ) (1) The adjustment to the opening balances for Retai |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
SUBSEQUENT EVENTS | 23.SUBSEQUENT EVENTS Public and Private Exchange Offers On July23, 2009 and July29, 2009, Citigroup closed its exchange offers with the private and public holders of preferred stock and trust preferred securities, as applicable ($32.8billion in aggregate liquidation value). In connection with these exchanges, the U.S. Treasury also exchanged $25billion of aggregate liquidation value of its preferred stock, for a total exchange of $57.8billion. Sale of Nikko Asset Management On July30, 2009, Citigroup entered into a definitive agreement to sell its entire ownership interest in Nikko Asset Management to The Sumitomo Trust and BankingCo.,Ltd. for an all cash consideration of approximately $795million (75.6billion). The sale is expected to close in the fourth quarter of 2009, subject to regulatory approvals and customary closing conditions, and is not expected to have a material impact on Citi's net income. As required by SFAS165, Subsequent Events, the Company has evaluated subsequent events through August7, 2009, which is the date its Consolidated Financial Statements were issued. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENT SCHEDULES (Citigroup Inc. and Subsidiaries) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENT SCHEDULES | 24.CONDENSED CONSOLIDATING FINANCIAL STATEMENT SCHEDULES These unaudited condensed consolidating financial statement schedules are presented for purposes of additional analysis but should be considered in relation to the consolidated financial statements of Citigroup taken as a whole. Citigroup Parent Company The holding company, CitigroupInc. Citigroup Global Markets HoldingsInc. (CGMHI) Citigroup guarantees various debt obligations of CGMHI as well as all of the outstanding debt obligations under CGMHI's publicly issued debt. Citigroup FundingInc. (CFI) CFI is a first-tier subsidiary of Citigroup, which issues commercial paper, medium-term notes and structured equity-linked and credit-linked notes, all of which are guaranteed by Citigroup. CitiFinancial Credit Company (CCC) An indirect wholly owned subsidiary of Citigroup. CCC is a wholly owned subsidiary of Associates First Capital Corporation (described below). Citigroup has issued a full and unconditional guarantee of the outstanding indebtedness of CCC. Associates First Capital Corporation (Associates) A wholly owned subsidiary of Citigroup. Citigroup has issued a full and unconditional guarantee of the outstanding long-term debt securities and commercial paper of Associates. In addition, Citigroup guaranteed various debt obligations of Citigroup Finance CanadaInc. (CFCI), a wholly owned subsidiary of Associates. CFCI continues to issue debt in the Canadian market supported by a Citigroup guarantee. Associates is the immediate parent company of CCC (described above). Other Citigroup Subsidiaries Includes all other subsidiaries of Citigroup, intercompany eliminations, and income/loss from discontinued operations. Consolidating Adjustments Includes Citigroup parent company elimination of distributed and undistributed income of subsidiaries, investment in subsidiaries and the elimination of CCC, which is included in the Associates column. CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June30, 2009 In millions of dollars Citigroup parent company CGMHI CFI CCC Associates Other Citigroup subsidiaries, eliminations Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiary banks and bank holding companies $ 16 $ $ $ $ $ $ (16 ) $ Interest revenue $ 57 $ 1,930 $ 1 $ 1,573 $ 1,795 $ 15,888 $ (1,573 ) $ 19,671 Interest revenueintercompany 554 1,461 1,030 (1,653 ) 113 (3,158 ) 1,653 Interest expense 1,988 725 449 21 117 3,563 (21 ) 6,842 Interest expenseintercompany (294 ) 701 260 (1,111 ) 395 (1,062 ) 1,111 Net interest revenue $ (1,083 ) $ 1,965 $ 322 $ 1,010 $ 1,396 $ 10,229 $ (1,010 ) $ 12,829 Commissions and fees $ $ 1,829 $ $ 11 $ 29 $ 3,579 $ (11 ) $ 5,437 Commissions and feesintercompany |
Document and Entity Information
Document and Entity Information (USD $) | |||
In Millions, except Share data | 6 Months Ended
Jun. 30, 2009 | Jun. 30, 2009
Citigroup Inc. and Subsidiaries | Jun. 30, 2008
Citigroup Inc. and Subsidiaries |
Entity Registrant Name | Citigroup Inc. | ||
Entity Central Index Key | 0000831001 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-06-30 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $91,200 | ||
Entity Common Stock, Shares Outstanding | 5,507,716,974 |