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This excerpt taken from the C 8-K filed Jan 23, 2009. Other items for which the fair value option was selected in accordance with SFAS 159
The Company has elected the fair value option for the following eligible items, which did not affect opening Retained earnings:
· certain credit products · certain investments in private equity and real estate ventures · certain structured liabilities · certain non-structured liabilities · certain equity-method investments · certain mortgage loans held-for-sale
This excerpt taken from the C 10-Q filed Oct 31, 2008. Other items for which the fair value option was selected in accordance with SFAS 159 The Company has elected the fair-value option for the following eligible items, which did not affect opening Retained earnings:
This excerpt taken from the C 8-K filed Aug 14, 2008. Other items for which the fair value option was selected in accordance with SFAS 159
The Company has elected the fair value option for the following eligible items, which did not affect opening Retained earnings:
· certain credit products · certain investments in private equity and real estate ventures · certain structured liabilities · certain non-structured liabilities · certain equity-method investments · certain mortgage loans held-for-sale
This excerpt taken from the C 10-Q filed Aug 1, 2008. Other items for which the fair value option was selected in accordance with SFAS 159 The Company has elected the fair-value option for the following eligible items, which did not affect opening Retained earnings:
This excerpt taken from the C 10-Q filed May 2, 2008. Other items for which the fair value option was selected in accordance with SFAS 159 The Company has elected the fair-value option for the following eligible items, which did not affect opening Retained earnings:
This excerpt taken from the C 10-K filed Feb 22, 2008. Other items for which the fair value option was selected in accordance with SFAS 159 The Company has elected the fair value option for the following eligible items, which did not affect opening Retained earnings:
This excerpt taken from the C 10-Q filed Nov 5, 2007. Other items for which the fair value option was selected in accordance with SFAS 159 The Company has elected fair value option for the following eligible items, which did not affect opening retained earnings:
Certain credit products Citigroup has elected the fair value option for certain originated and purchased loans, including certain unfunded loan products, such as guarantees and letters of credit, executed by Citigroup's trading businesses. None of these credit products are highly leveraged financing commitments. Significant groups of transactions include loans and unfunded loan products that will either be sold or securitized in the near term, or where the economic risks are hedged with derivative instruments. Citigroup has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex; and to achieve operational simplifications. Fair value was not elected for most lending transactions across the Company, including where those management objectives would not be met. The balances for these loan products, which are classified with Trading account assets or Loans, were $25.1 billion and $2.1 billion as of September 30, 2007, respectively. The aggregate unpaid principal balances exceeded the aggregate fair values by $1.1 billion as of September 30, 2007. $81 million of these loans were on a non-accrual basis. For those loans that are on a non-accrual basis, the aggregate unpaid principal balances exceeded the aggregate fair values by $34 million as of September 30, 2007. In addition, $141 million of unfunded loan commitments related to certain credit products selected for fair value accounting were outstanding as of September 30, 2007. Changes in fair value of funded and unfunded credit products are classified in Principal transactions in the Company's Consolidated Statement of Income. Related interest revenue is measured based on the contractual interest rates and reported as interest revenue on trading account assets or loans depending on their balance sheet classifications. The changes in fair value during the third quarter 2007 due to instrument-specific credit risk totaled to a loss of $136 million. Certain investments in private equity and real estate ventures Citigroup invests in private equity and real estate ventures for the purpose of earning investment returns and for capital appreciation. The Company has elected the fair value option for certain of these ventures in anticipation of the January 2009 implementation of the Investment Company Audit Guide SOP, because such investments are considered similar to many private equity or hedge fund activities in our investment companies, which are reported at fair value. See previous discussion regarding the SOP. The fair value option brings consistency in the accounting and evaluation of certain of 82 these investments. As required by SFAS 159, all investments (debt and equity) in such real estate entities are accounted for at fair value. These investments, which totaled $479 million as of September 30, 2007, are classified as Investments on Citigroup's Consolidated Balance Sheet. Changes in the fair values of these investments are classified in Other revenue in the Company's Consolidated Statement of Income. Certain structured liabilities The Company has elected the fair value option for certain structured liabilities whose performance is linked to structured interest rates, inflation or currency risks ("structured liabilities"), but do not qualify for the fair value election under SFAS 155. The Company has elected the fair value option for structured liabilities, because these exposures are considered to be trading-related positions and, therefore, are managed on a fair value basis. These positions will continue to be classified as debt, deposits or derivatives according to their legal form on the Company's Consolidated Balance Sheet. The balances for these structured liabilities, which are classified as Interest-bearing deposits and Long-term debt on the Consolidated Balance Sheet, are $233 million and $2.6 billion as of September 30, 2007, respectively. For these structured liabilities classified as Long-term debt for which the fair value option has been elected, the aggregate unpaid principal balance exceeds the aggregate fair value of such instruments by $48 million as of September 30, 2007. The change in fair value for these structured liabilities is reported in Principal transactions in the Company's Consolidated Statement of Income. Related interest expense is measured based on the contractual interest rates and reported as such in the Consolidated Income Statement. Certain non-structured liabilities The Company has elected the fair value option for certain non-structured liabilities with fixed and non-structured floating interest rates ("non-structured liabilities"). The Company has elected the fair value option where the interest rate risk of such liabilities is economically hedged with derivative contracts or the proceeds are used to purchase financial assets that will also be fair valued. The election has been made to mitigate accounting mismatches and to achieve operational simplifications. These positions are reported in Long-term debt on the Company's Consolidated Balance Sheet. The balances of these non-structured liabilities as of September 30, 2007 is $3.1 billion. For these non-structured liabilities classified as Long-term debt for which the fair value option has been elected, the aggregate fair value exceeds the aggregate unpaid principal balance of such instruments by $26 million as of September 30, 2007. The change in fair value for these non-structured liabilities is reported in Principal transactions in the Company's Consolidated Statement of Income. Related interest expense continues to be measured based on the contractual interest rates and reported as such in the Consolidated Income Statement. Certain equity method investments Citigroup adopted fair value accounting for various non-strategic investments in leveraged buyout funds and other hedge funds that previously were required to be accounted for under the equity method. Management elected fair value accounting to reduce operational and accounting complexity, in particular related to the future implementation of the Investment Company Audit Guide SOP. Since the funds account for all of their underlying assets at full fair value, the impact of applying the equity method to Citigroup's investment in these funds was equivalent to fair value accounting. Thus, this fair value election had no impact on opening retained earnings. These fund investments, which totaled $2.0 billion as of September 30, 2007, are classified as Investments on the Consolidated Balance Sheet. Changes in the fair values of 83 these investments are classified in Other revenue in the Consolidated Statement of Income. Certain mortgage loans held-for-sale Citigroup has elected the fair value option for certain purchased and originated prime fixed-rate and conforming adjustable-rate first mortgage loans held-for-sale. These loans are intended for sale or securitization and are hedged with derivative instruments. The Company has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications. The fair value option was not elected for loans held for investment, as those loans are not hedged with derivative instruments. This election was effective for applicable instruments originated or purchased since September 1, 2007. The balance for these mortgage loans held-for-sale, classified as Other assets, was $5.2 billion as of September 30, 2007. The aggregate fair value exceeded the unpaid principal balances by $36 million as of September 30, 2007. None of these loans were 90 days or more past due, nor were any on a non-accrual basis. The changes in fair values of these mortgage loans held-for-sale is reported in Other revenue in the Company's Consolidated Statement of Income. The changes in fair value during the third quarter 2007 due to instrument-specific credit risk were immaterial. Related interest income continues to be measured based on the contractual interest rates and reported as such in the Consolidated Income Statement. This excerpt taken from the C 10-Q filed Aug 3, 2007. Other items for which the fair value option was selected in accordance with SFAS 159 The Company has elected fair value option for the following eligible items, which did not affect opening retained earnings: · Certain credit products · Certain investments in private equity and real estate ventures · Certain structured liabilities · Certain non-structured liabilities · Certain equity-method investments | EXCERPTS ON THIS PAGE:
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