Citibank 2011 Annual Report Download - page 176

154
3. DISCONTINUED OPERATIONS
Sale of Egg Banking PLC Credit Card Business
On March 1, 2011, the Company announced that Egg Banking plc (Egg), an
indirect subsidiary which was part of the Citi Holdings segment, entered into
a definitive agreement to sell its credit card business to Barclays PLC. The sale
closed on April 28, 2011.
This sale is reported as discontinued operations for the full year of
2011 only. Prior periods were not reclassified due to the immateriality of
the impact in those periods. An after-tax gain on sale of $126 million was
recognized upon closing. Egg operations had total assets and total liabilities
of approximately $2.7 billion and $39 million, respectively, at the time
of sale.
Summarized financial information for Discontinued operations,
including cash flows, for the credit card operations related to Egg follows:
In millions of dollars 2011
Total revenues, net of interest expense (1) $ 340
)NCOMEæFROMæDISCONTINUEDæOPERATIONS $24
'AINæONæSALE 143
0ROVISIONæFORæINCOMEæTAXESæ 58
Income from discontinued operations, net of taxes $ 109
In millions of dollars 2011
#ASHæFLOWSæFROMæOPERATINGæACTIVITIES $ (146)
#ASHæFLOWSæFROMæINVESTINGæACTIVITIES 2,827
#ASHæFLOWSæFROMæFINANCINGæACTIVITIES (12)
Net cash provided by discontinued operations $ 2,669
æ 4OTALæREVENUESæINCLUDEæGAINæORæLOSSæONæSALEæIFæAPPLICABLE
Sale of The Student Loan Corporation
On September 17, 2010, the Company announced that The Student Loan
Corporation (SLC), an indirect subsidiary that was 80% owned by Citibank
and 20% owned by public shareholders, and which was part of the Citi
Holdings segment, entered into definitive agreements that resulted in
the divestiture of Citi’s private student loan business and approximately
$31 billion of its approximate $40 billion in assets to Discover Financial
Services (Discover) and SLM Corporation (Sallie Mae). The transaction
closed on December 31, 2010. As part of the transaction, Citi provided
Sallie Mae with $1.1 billion of seller-financing. Additionally, as part of the
transactions, Citibank, N.A. purchased approximately $8.6 billion of assets
from SLC prior to the sale of SLC.
This sale was reported as discontinued operations for the third and
fourth quarters of 2010 only. Prior periods were not reclassified due to the
immateriality of the impact in those periods. The total 2010 impact from the
sale of SLC resulted in an after-tax loss of $427 million. SLC operations had
total assets and total liabilities of approximately $31 billion and $29 billion,
respectively, at the time of sale.
Summarized financial information for discontinued operations, including
cash flows, related to the sale of SLC follows:
In millions of dollars 2011 æ
Total revenues, net of interest expense (2) $—  
)NCOMEæLOSSæFROMæDISCONTINUEDæOPERATIONS $— 
,OSSæONæSALE —
"ENEFITæFORæINCOMEæTAXESæ —
Loss from discontinued operations, net of taxes $—  
In millions of dollars 2011 æ
#ASHæFLOWSæFROMæOPERATINGæACTIVITIES $—  
#ASHæFLOWSæFROMæINVESTINGæACTIVITIES —
#ASHæFLOWSæFROMæFINANCINGæACTIVITIES —
Net cash provided by discontinued operations $—  
æ !MOUNTSæREFLECTæACTIVITYæFROMæ*ULYæææTHROUGHæ$ECEMBERæææONLY
æ 4OTALæREVENUESæINCLUDEæGAINæORæLOSSæONæSALEæIFæAPPLICABLE