Citibank 2013 Annual Report Download - page 188

170
2. DISCONTINUED OPERATIONS
The following Discontinued operations are recorded within the
Corporate/Other segment.
Sale of Brazil Credicard Business
On December 20, 2013, Citi sold its non-Citibank branded cards and
consumer finance business in Brazil (Credicard) for approximately $1.24
billion. The sale resulted in a pretax gain of $206 million ($325 million
after-tax). In the fourth quarter of 2013, certain expenses related to Credicard
were recognized by Citi in Income (loss) from discontinued operations.
The net impact of these expenses and the gain on sale was an after-tax
benefit of $189 million recorded in Corporate/Other. Citi retained its
Citi-branded and Diners credit cards, along with certain affluent segments
currently associated with Credicard, which will be re-branded as Citi.
Previously, Credicard had been part of the Global Consumer Banking
segment and had approximately $3.5 billion in assets prior to the sale.
Credicard is reported as Discontinued operations for all
periods presented.
Summarized financial information for Discontinued operations for
Credicard follows:
In millions of dollars 2013 2012 2011
Total revenues, net of interest expense (1) $1,012 $1,045 $1,022
Income (loss) from discontinued operations $ (48) $ 110 $ (98)
Gain on sale 206 — —
Income taxes (benefits) (138) 19 (54)
Income (loss) from discontinued operations, net of taxes $ 296 $ 91 $ (44)
(1) Total revenues include gain or loss on sale, if applicable.
Cash Flows from Discontinued Operations
In millions of dollars 2013 2012 2011
Cash flows from operating activities $ 197 $(205) $ 28
Cash flows from investing activities (207) 195 (44)
Cash flows from financing activities —16 —
Net cash provided by discontinued operations $ (10) $ 6 $(16)
Sale of Certain Citi Capital Advisors Business
During the third quarter of 2012, Citi executed definitive agreements to
transition a carve-out of its liquid strategies business within Citi Capital
Advisors (CCA). The sale occurred pursuant to two separate transactions,
creating two separate management companies. The first transaction closed in
February 2013, and Citigroup retained a 24.9% passive equity interest in the
management company (which is held in Citi’s Institutional Clients Group
segment). The second transaction closed in August 2013.
This sale is reported as Discontinued operations for the second half of
2012 and 2013. Prior periods were not reclassified due to the immateriality of
the impact in those periods.
Summarized financial information for Discontinued operations for the
operations related to CCA follows:
In millions of dollars 2013 2012
Total revenues, net of interest expense (1) $ 74 $ 60
Loss from discontinued operations $(158) (123)
Gain on sale 62 —
Benefit for income taxes (30) (44)
Loss from discontinued operations, net of taxes $ (66) (79)
(1) Total revenues include gain or loss on sale, if applicable.
Cash Flows from Discontinued Operations
In millions of dollars 2013 2012
Cash flows from operating activities $(43) $ (4)
Cash flows from investing activities —4
Cash flows from financing activities 43 —
Net cash provided by discontinued operations $ — $—