Less imputed interest (based on weighted-average discount rate of 3.0%)

  
Citi’s future lease payments are as follows:  


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| In millions of dollars |  |
| 2022 | $ | 763  |  |
| 2023 | 648  |  |
| 2024 | 542  |  |
| 2025 | 445  |  |
| 2026 | 346  |  |
| Thereafter | 753  |  |
| Total future lease payments | $ | 3,497  |  |
| Less imputed interest (based on weighted-average discount rate of 3.0%) | $ | (381) |  |
| Lease liability | $ | 3,116  |  |

  
Operating lease expense was $1.1 billion for the year ended December 31, 2019.GuaranteesCiti provides a variety of guarantees and indemnifications to its customers to enhance their credit standing and enable them to complete a wide variety of business transactions. Forcertain contracts meeting the definition of a guarantee, the guarantor must recognize, at inception, a liability for the fair value of the obligation undertaken in issuing the guarantee.In addition, the guarantor must disclose the maximum potential amount of future payments that the guarantor could be required to make under the guarantee, if there were a total default by the guaranteed parties. The determination of the maximum potential future payments is based on the notional amount of the guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. As such, Citi believes such amounts bear no relationship to the anticipated losses, if any, on these guarantees.  
  
The following tables present information about Citi’s guarantees:  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Maximum potential amount of future payments |   |
| In billions of dollars at December 31, 2021 | Expire within1 year | Expire after1 year | Total amountoutstanding | Carrying value(in millions of dollars) |
| Financial standby letters of credit | $ | 34.3  |  | $ | 58.4  |  | $ | 92.7  |  | $ | 791  |  |
| Performance guarantees | 6.6  |  | 6.4  |  | 13.0  |  | 47  |  |
| Derivative instruments considered to be guarantees | 14.6  |  | 48.9  |  | 63.5  |  | 514  |  |
| Loans sold with recourse | —  |  | 1.7  |  | 1.7  |  | 15  |  |
| Securities lending indemnifications(1) | 121.9  |  | —  |  | 121.9  |  | —  |  |
| Credit card merchant processing(2) | 119.4  |  | —  |  | 119.4  |  | 1  |  |
| Credit card arrangements with partners | —  |  | 0.8  |  | 0.8  |  | 7  |  |
| Other | 2.0  |  | 12.0  |  | 14.0  |  | 34  |  |
| Total | $ | 298.8  |  | $ | 128.2  |  | $ | 427.0  |  | $ | 1,409  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Maximum potential amount of future payments |   |
| In billions of dollars at December 31, 2020 | Expire within1 year | Expire after1 year | Total amountoutstanding | Carrying value(in millions of dollars) |
| Financial standby letters of credit | $ | 25.3  |  | $ | 68.4  |  | $ | 93.7  |  | $ | 1,407  |  |
| Performance guarantees | 7.3  |  | 6.0  |  | 13.3  |  | 72  |  |
| Derivative instruments considered to be guarantees | 20.0  |  | 60.9  |  | 80.9  |  | 671  |  |
| Loans sold with recourse | —  |  | 1.2  |  | 1.2  |  | 9  |  |
| Securities lending indemnifications(1) | 112.2  |  | —  |  | 112.2  |  | —  |  |
| Credit card merchant processing(2) | 101.9  |  | —  |  | 101.9  |  | 3  |  |
| Credit card arrangements with partners | 0.2  |  | 0.8  |  | 1.0  |  | 7  |  |
| Other | —  |  | 12.0  |  | 12.0  |  | 35  |  |
| Total | $ | 266.9  |  | $ | 149.3  |  | $ | 416.2  |  | $ | 2,204  |  |

  
(1)The carrying values of securities lending indemnifications were not material for either period presented, as the probability of potential liabilities arising from these guarantees is minimal.(2)At December 31, 2021 and 2020, this maximum potential exposure was estimated to be $119 billion and $102 billion, respectively. However, Citi believes that the maximum exposure is not representative of the actual potential loss exposure based on its historical experience. This contingent liability is unlikely to arise, as most products and services are delivered when purchased and amounts are refunded when items are returned to merchants.  
  
290
