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DEBT
12 Months Ended
Dec. 31, 2012
DEBT  
DEBT

19. DEBT

Short-Term Borrowings
Short-term borrowings consist of commercial paper and other borrowings with weighted average interest rates at December 31 as follows:

2012 2011
Weighted Weighted
In millions of dollars     Balance     average     Balance     average
Commercial paper
Bank $ 11,092 0.59 % $ 14,872 0.32 %
Other non-bank 378 0.84 6,414 0.49
$ 11,470 $ 21,286
Other borrowings (1) 40,557 1.06 % 33,155 1.09 %
Total $ 52,027 $ 54,441

(1)       At December 31, 2012 and December 31, 2011, collateralized short-term advances from the Federal Home Loan Banks were $4 billion and $5 billion, respectively.

     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 are secured in accordance with Section 23A of the Federal Reserve Act.
    
Citigroup Global Markets Holdings Inc. (CGMHI) has 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

Balances at
December 31,
Weighted
average
In millions of dollars     coupon     Maturities     2012     2011
Citigroup
Senior notes 4.29 % 2013–2098 $ 138,862 $ 136,468
Subordinated notes (1) 4.40 2013–2036 27,581 29,177
Junior subordinated notes
     relating to trust preferred
     securities 7.14 2031–2067 10,110 16,057
Bank (2)
Senior notes 1.91 2013–2039 50,527 77,036
Subordinated notes (1) 3.29 2013–2039 707 859
Non-bank
Senior notes 3.64 2013–2097 11,651 63,712
Subordinated notes (1) 2.26 2013–2017 25 196
Total (3) $ 239,463 $ 323,505
Senior notes $ 201,040 $ 277,216
Subordinated notes (1) 28,313 30,232
Junior subordinated notes
     relating to trust preferred
     securities 10,110 16,057
Total $ 239,463 $ 323,505

Note: Citigroup Funding Inc. (CFI) was previously a first-tier subsidiary of Citigroup Inc., issuing commercial paper, medium-term notes and structured equity-linked and credit-linked notes. The debt of CFI was guaranteed by Citigroup Inc. On December 31, 2012, CFI was merged into Citigroup Inc.
(1)       Includes notes that are subordinated within certain countries, regions or subsidiaries.
(2)        Represents Citibank, N.A., as well as subsidiaries of Citibank and Banamex. At December 31, 2012 and 2011, collateralized long-term advances from the Federal Home Loan Banks were $16.3 billion and $11.0 billion, respectively.
(3)        Includes senior notes with carrying values of $186 million issued to Safety First Trust Series 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 at December 31, 2012 and $215 million issued to Safety First Trust Series 2007-3, 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 at December 31, 2011. Citigroup 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.

     CGMHI has committed long-term financing facilities with unaffiliated banks. At December 31, 2012, CGMHI had drawn down $300 million available under these facilities. Generally, a bank can terminate these facilities by giving CGMHI one-year prior notice.
    
The Company issues both fixed and variable rate debt in a range of currencies. It uses derivative contracts, primarily interest rate swaps, to effectively convert a portion of its fixed rate debt to variable rate debt and variable rate debt to fixed rate debt. The maturity structure of the derivatives generally corresponds to the maturity structure of the debt being hedged. In addition, the Company uses other derivative contracts to manage the foreign exchange impact of certain debt issuances. At December 31, 2012, the Company’s overall weighted average interest rate for long-term debt was 3.88% on a contractual basis and 2.71% including the effects of derivative contracts.

Aggregate annual maturities of long-term debt obligations (based on final maturity dates) including trust preferred securities are as follows:

In millions of dollars       2013       2014       2015       2016       2017       Thereafter       Total
Bank $ 16,601 $ 9,862 $ 8,588 $ 6,320 $ 2,943 $ 6,920 $ 51,234
Non-bank 1,586 2,921 781 800 52 5,536 11,676
Parent company 24,464 24,243 19,677 12,737 21,156 74,276 176,553
Total $ 42,651 $ 37,026 $ 29,046 $ 19,857 $ 24,151 $ 86,732 $ 239,463

     Long-term debt outstanding includes trust preferred securities with a balance sheet carrying value of $10,110 million and $16,057 million at December 31, 2012 and December 31, 2011, respectively. In issuing these trust preferred securities, Citi formed statutory business trusts under the laws of the State of Delaware. The trusts exist for the exclusive purposes of (i) issuing trust preferred securities representing undivided beneficial interests in the assets of the trust; (ii) investing the gross proceeds of the trust preferred securities in junior subordinated deferrable interest debentures (subordinated debentures) of its parent; and (iii) engaging in only those activities necessary or incidental thereto. Generally, upon receipt of certain regulatory approvals, Citigroup has the right to redeem these securities.

     As previously disclosed, during the third quarter of 2012, Citi redeemed three series of its trust preferred securities resulting in a pretax gain of $198 million. The redemptions under Citigroup Capital XII and XXI closed on July 18, 2012, while Citigroup Capital XIX closed on August 15, 2012. During the fourth quarter of 2012, Citigroup completed the early redemption of Citigroup Capital XX in the amount of $0.4 billion. The gain recorded upon the redemption was $7 million. The redemption under Citigroup Capital XX closed on December 17, 2012.

The following table summarizes the financial structure of each of the Company’s subsidiary trusts at December 31, 2012:

Junior subordinated debentures owned by trust
Trust securities Common
with distributions shares Redeemable
guaranteed by Issuance Securities Liquidation Coupon issued by issuer
Citigroup    date    issued    value  (1)    rate    to parent     Amount         Maturity         beginning
In millions of dollars, except share amounts
Citigroup Capital III Dec. 1996 194,053        $ 194 7.625% 6,003 $ 200 Dec. 1, 2036 Not redeemable
Citigroup Capital VII July 2001 35,885,898 897 7.125% 1,109,874 925 July 31, 2031 July 31, 2006
Citigroup Capital VIII Sept. 2001 43,651,597 1,091 6.950% 1,350,050 1,125 Sept. 15, 2031 Sept. 17, 2006
Citigroup Capital IX Feb. 2003 33,874,813 847 6.000% 1,047,675 873 Feb. 14, 2033 Feb. 13, 2008
Citigroup Capital X Sept. 2003 14,757,823 369 6.100% 456,428 380 Sept. 30, 2033 Sept. 30, 2008
Citigroup Capital XI Sept. 2004 18,387,128 460 6.000% 568,675 474 Sept. 27, 2034 Sept. 27, 2009
Citigroup Capital XIII Sept. 2010 89,840,000 2,246 7.875% 1,000 2,246 Oct. 30, 2040 Oct. 30, 2015
Citigroup Capital XIV June 2006 12,227,281 306 6.875% 40,000 307 June 30, 2066 June 30, 2011
Citigroup Capital XV Sept. 2006 25,210,733 630 6.500% 40,000 631 Sept. 15, 2066 Sept. 15, 2011
Citigroup Capital XVI Nov. 2006 38,148,947 954 6.450% 20,000 954 Dec. 31, 2066 Dec. 31, 2011
Citigroup Capital XVII Mar. 2007 28,047,927 701 6.350% 20,000 702 Mar. 15, 2067 Mar. 15, 2012
Citigroup Capital XVIII June 2007 99,901 162 6.829% 50 162 June 28, 2067 June 28, 2017
Citigroup Capital XXXIII (2) July 2009 3,025,000 3,025 8.000% 100 3,025 July 30, 2039 July 30, 2014
3 mo. LIB
Adam Capital Trust III Dec. 2002 17,500 18 +335 bp. 542 18 Jan. 7, 2033 Jan. 7, 2008
3 mo. LIB
Adam Statutory Trust III Dec. 2002 25,000 25 +325 bp. 774 26 Dec. 26, 2032 Dec. 26, 2007
3 mo. LIB
Adam Statutory Trust IV Sept. 2003 40,000 40 +295 bp. 1,238 41 Sept. 17, 2033 Sept. 17, 2008
3 mo. LIB
Adam Statutory Trust V Mar. 2004 35,000 35 +279 bp. 1,083 36 Mar. 17, 2034 Mar. 17, 2009
Total obligated $ 12,000 $ 12,125

(1)       Represents the notional value received by investors from the trusts at the time of issuance.
(2)        On February 4, 2013, approximately $800 million of the $3,025 million issued under Citigroup Capital XXXIII was exchanged into subordinated debt, leaving approximately $2,225 million of trust preferred securities outstanding as of such date.

     In each case, the coupon rate on the debentures is the same as that on the trust securities. Distributions on the trust securities and interest on the debentures are payable quarterly, except for Citigroup Capital III and Citigroup Capital XVIII on which distributions are payable semiannually.