Citigroup (C)

Factors Affecting Assets and Liabilities

2005

        On December 1, 2005, Citigroup completed the exchange of its asset management business for Legg Mason's broker-dealer business, approximately $2 billion of Legg Mason's common and preferred shares, and approximately $500 million in cash that was obtained via a lending facility provided by CIB. This exchange resulted in a decrease of approximately $1 billion in assets sold and an increase to Citigroup's total assets of approximately $6 billion on the business acquired.

        On October 24, 2005, Citigroup completed the first phase in acquiring the credit card portfolio of Federated Department Stores, Inc. This resulted in an increase of more than $3 billion in the Company's total assets.

        On July 1, 2005, Citigroup completed the sale of the Life Insurance & Annuities Business to MetLife. This transaction resulted in a decrease of $93 billion in the Company's total assets and $84 billion in insurance-related liabilities.

        On March 31, 2005, Citigroup completed its acquisition of First American Bank in Texas. This acquisition resulted in an increase in the Company's total assets and deposits of more than approximately $4 billion and $3 billion, respectively.

        During the 2005 year, Citigroup repurchased 278 million shares of common stock in open market repurchases. This resulted in a decrease of $13 billion in stockholders' equity, which was offset by an increase of $15 billion in retained earnings.

        See Notes 2 and 3 to the Consolidated Financial Statements on pages 118 and 119, respectively.

2004

        On April 30, 2004, Citigroup completed its tender offer to purchase the outstanding shares of KorAm for approximately $3 billion. This transaction resulted in an increase in assets and deposits of $37 billion and $22 billion, respectively, at June 30, 2004.

        On January 9, 2004, Citigroup completed the acquisition of Washington Mutual Finance Corporation for approximately $1 billion in cash, resulting in an increase to total assets of $4 billion. See Note 2 to the Consolidated Financial Statements on page 118.

Factors Affecting Assets and Liabilities

2004

        On April 30, 2004, Citigroup completed its tender offer to purchase all the outstanding shares of KorAm for $2.7 billion. This transaction resulted in an increase in assets of $37 billion at June 30, 2004. See Note 2 to the Consolidated Financial Statements.

        On January 9, 2004, Citigroup completed the acquisition of Washington Mutual Finance Corporation (WMF) for $1.25 billion in cash. The acquisition included 427 WMF offices located in 26 states, and total assets of $3.8 billion. The results of WMF are included in the Consolidated Financial Statements from January 2004 forward. See Note 2 to the Consolidated Financial Statements.

2003

        On November 3, 2003, Citigroup acquired the Sears' Credit Card and Financial Products business (Sears). This transaction resulted in an increase in assets at December 31, 2003 of approximately $32.4 billion, primarily composed of $28.6 billion in credit card receivables and $5.8 billion in intangible assets and goodwill, slightly offset by the addition of $2.1 billion in credit loss reserves. The transaction also resulted in an increase in long-term debt of approximately $10.0 billion. See Note 2 to the Consolidated Financial Statements.

        In July 2003, Citigroup completed the acquisition of The Home Depot private-label portfolio (Home Depot), which added $6.0 billion in receivables and 12 million accounts. See Note 2 to the Consolidated Financial Statements.