Citigroup (C)

Debt

Debt is composed of both short-term and long-term borrowings. It includes commercial paper, borrowings from unaffiliated banks, senior notes (including collateralized advances from the Federal Home Loan Bank), subordinated notes and trust preferred securities. The majority of debt is

Debt

Debt is composed of both short-term and long-term borrowings. It includes commercial paper, borrowings from unaffiliated banks, senior notes (including collateralized advances from the Federal Home Loan Bank), subordinated notes and trust preferred securities. The majority of debt is carried at cost, with approximately $93 billion recorded at fair value in accordance with SFAS 155 and SFAS 159.

Debt increased by $185 billion, or 48%, as short-term borrowings increased $46 billion, or 45%, and long-term debt increased $139 billion, or 48%.

Short-term borrowings consist of commercial paper and other short-term borrowings as follows:

(1)             At June 30, 2007, collateralized advances from the Federal Home Loan Bank are $3.1 billion.

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 nonbank subsidiaries have credit facilities with Citigroup’s subsidiary depository institutions, including Citibank, N.A. Borrowings under these facilities must be collateralized in accordance with Section 23A of the Federal Reserve Act.

Debt

Debt is comprised of both short-term and long-term borrowings. It includes commercial paper, borrowings from unaffiliated banks, senior notes (including collateralized advances from the Federal Home Loan Bank), subordinated notes, and trust preferred securities.

Debt increased by $105 billion, or 37%, as short-term borrowings increased $34 billion, or 51%, and long-term debt increased $71 billion, or 33%.

The increase in short-term borrowings included an increase of $10 billion in commercial paper, and an increase of $24 billion in other funds borrowed. The increase was used to fund both trading and non-trading activities.

Average commercial paper outstanding in 2006 was $32 billion and yielded an average rate of 5.0%, compared to $26 billion and 3.1% in 2005. Average other funds borrowed in 2006 was $39 billion, yielding an average rate of 4.1%, compared to $32 billion and 4.1% in the prior year.

As for long-term debt, the Company took advantage of flattening yield curves and the positive credit environment experienced during 2006 to extend the maturities of new borrowings and issued/acquired additional debt from new acquisitions as U.S. dollar and non-U.S. dollar-denominated fixed and variable rate senior debt increased by $62 billion, while subordinated debt increased by $6 billion. These increases were driven by new issuances of $114 billion, offset by repayments/redemptions and maturities totaling $46 billion. The increase in long-term debt was primarily used to fund growth in the mortgage loan portfolio and to fund the mortgage-backed securities investment portfolios. Additionally, trust preferred securities increased by $3 billion.

Average long-term debt outstanding during 2006 was $245 billion, compared to $212 billion in 2005, yielding an average rate of 4.9% and 3.7%, respectively.

For more information on debt, see Note 19 to the Consolidated Financial Statements on page 139 and “Capital Resources and Liquidity” on page 86.

8.     Debt

        Investment banking and brokerage borrowings consisted of the following:

        Short-term borrowings consisted of commercial paper and other short-term borrowings as follows:

        Long-term debt, including its current portion, consisted of the following:

        Long-term debt at March 31, 2005 and December 31, 2004 includes $6,537 million and $6,397 million, respectively, of junior subordinated debt.

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Debt

        At December 31, 2004, total Citigroup debt was $264.7 billion, composed of long-term debt of $207.9 billion, short-term borrowings of $31.0 billion, and investment banking and brokerage borrowings of $25.8 billion, up 20% from $221.3 billion in the prior year. During 2004, the Company continued to take advantage of low interest rates and the positive credit environment to extend the maturities of new borrowings. This $43.3 billion increase from 2003 includes increases of $45.2 billion in long-term debt and $3.3 billion in investment banking and brokerage borrowings, partially offset by a $5.2 billion decrease in short-term borrowings.

        The long-term debt balance at December 31, 2004 includes $181.4 billion of senior notes, $19.1 billion of subordinated notes, with maturities ranging from 2005 to 2098, and $6.4 billion of junior subordinated notes relating to trust preferred securities. During 2004, U.S. dollar- and non-U.S. dollar-denominated fixed and variable rate senior debt increased by $35.6 billion, and subordinated debt increased by $3.2 billion. Average long-term debt outstanding during 2004 was $188.4 billion.

        The 15% increase in investment banking and brokerage borrowings in 2004 includes a $3.6 billion increase in other short-term and bank borrowings and a $0.3 billion decrease in commercial paper.

        The 14% decrease in short-term borrowings in 2004 includes a decrease of $6.8 billion in commercial paper, partially offset by an increase of $1.6 billion in other funds borrowed.

        For more information on debt, see Note 13 to the Consolidated Financial Statements and "Capital Resources and Liquidity" beginning on page 62.

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