Citibank 2013 Annual Report Download - page 189

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Sale of Egg Banking plc Credit Card Business
On March 1, 2011, Citi announced that Egg Banking plc (Egg), an indirect
subsidiary that was part of Citi Holdings, entered into a definitive agreement
to sell its credit card business. The sale closed in April 2011.
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 for the
operations related to Egg follows:
In millions of dollars 2013 2012 2011
Total revenues, net of interest expense (1) $ — $ 1 $340
Income (loss) from discontinued operations $(62) $(96) $ 24
Gain (loss) on sale —(1) 143
(Benefit) provision for income taxes (22) (34) 58
Income (loss) from discontinued
operations, net of taxes $(40) $(63) $109
(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 $— $— $ (146)
Cash flows from investing activities —— 2,827
Cash flows from financing activities —— (12)
Net cash provided by discontinued operations $— $— $2,669
Audit of Citi German Consumer Tax Group
Citi sold its German retail banking operations in 2007 and reported them
as Discontinued operations. During the third quarter of 2013, German
tax authorities concluded their audit of Citi’s German Consumer tax group
for the years 2005-2008. This resolution resulted in a pretax benefit of $27
million and a tax benefit of $57 million ($85 million total net income
benefit) during the third quarter of 2013, all of which was included in
Discontinued operations. During 2013, residual costs associated with
German retail banking operations resulted in a pretax benefit of $26 million
and a tax benefit of $54 million ($80 million total net income benefit).
Combined Results for Discontinued Operations
The following is summarized financial information for Credicard, CCA, Egg,
the German tax benefit and previous Discontinued operations for which Citi
continues to have minimal residual costs associated with the sales:
In millions of dollars 2013 2012 2011
Total revenues, net of interest expense (1) $1,086 $1,106 $1,374
Income (loss) from discontinued operations $ (242) $ (109) $ (75)
Gain (loss) on sale 268 (1) 155
Provision (benefit) for income taxes (244) (52) 12
Income (loss) from discontinued
operations, net of taxes $ 270 $ (58) $ 68
(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 $ 154 $(209) $ (118)
Cash flows from investing activities (207) 199 2,783
Cash flows from financing activities 43 16 (12)
Net cash provided by discontinued operations $ (10) $ 6 $2,653