8-KEarnings & ResultsExhibits & Filings

CITIGROUP INC 8-K Report, Financial Results (Apr 8, 2015)

Filed April 8, 2015For Securities:CC-PNC-PR

Summary

Citigroup Inc. (C) filed an 8-K report on April 8, 2015, primarily to disclose a revised Historical Quarterly Financial Data Supplement. This supplement reclassifies historical financial data between Citicorp and Citi Holdings, specifically for consumer businesses in 11 markets and consumer finance in Korea within Global Consumer Banking (GCB), as well as certain businesses in the Institutional Clients Group (ICG) that Citigroup intends to exit. These reclassifications are intended to provide a more comparable format for the upcoming first quarter 2015 results. The filing also notes the adoption of Accounting Standards Update (ASU) 2014-01, which affects the accounting for investments in qualified affordable housing projects. This adoption is applied retrospectively and has resulted in an opening retained earnings adjustment of $178 million as of January 1, 2010. While these reclassifications and accounting changes alter segment reporting and certain balance sheet items, Citigroup states that its consolidated results remain unchanged for all periods presented. Investors should note that this filing is furnished and not deemed "filed" for Section 18 purposes.

Key Highlights

  • 1Citigroup released a Revised Historical Quarterly Financial Data Supplement for periods ending December 31, 2014.
  • 2The supplement reclassifies historical data between Citicorp and Citi Holdings for specific consumer and institutional businesses slated for exit.
  • 3These reclassifications aim to improve comparability with forthcoming Q1 2015 financial results.
  • 4Citigroup adopted ASU 2014-01 concerning investments in affordable housing projects, applying it retrospectively.
  • 5The adoption of ASU 2014-01 resulted in a $178 million opening retained earnings adjustment as of January 1, 2010.
  • 6Consolidated financial results for all presented periods remain unchanged despite these reclassifications and accounting adjustments.
  • 7The 8-K filing is furnished, not filed, meaning it does not carry the same legal implications under Section 18 of the Securities Exchange Act.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with a revised historical financial data supplement. This supplement reclassifies certain historical financial data to better align with Citigroup's planned reporting structure for its 2015 first quarter results, particularly concerning businesses it intends to exit.

No, Citigroup explicitly states that its consolidated financial results remain unchanged for all periods presented as a result of these reclassifications and accounting adjustments. The changes are primarily related to how data is presented within different business segments and legal entities.

Citigroup adopted ASU 2014-01, which relates to investments in qualified affordable housing projects. This accounting change was applied retrospectively and resulted in an opening retained earnings adjustment of $178 million as of January 1, 2010. This adjustment impacts certain balance sheet items and earnings per share historically but does not alter the company's overall consolidated financial performance for the periods presented.

The filing is 'furnished' pursuant to the Securities Exchange Act of 1934, meaning it is provided to the SEC for public dissemination. However, it is not considered 'filed' for the purposes of Section 18 of the Act, which deals with liability for false or misleading statements in filed documents. This distinction is important for legal and regulatory reasons.