Citibank 2014 Annual Report Download - page 172

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2. DISCONTINUED OPERATIONS AND SIGNIFICANT
DISPOSALS
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 2014, resolution of
certain contingencies related to the disposal are reported as Income (loss)
from discontinued operations. Credicard is reported as Discontinued
operations for all periods presented. Summarized financial information
for Discontinued operations for Credicard follows:
In millions of dollars 2014 2013 2012
Total revenues, net of interest expense (1) $69 $1,012 $1,045
Income (loss) from discontinued operations $63 $ (48) $ 110
Gain on sale —206 —
Provision (benefit) for income taxes 11 (138) 19
Income (loss) from discontinued operations, net of taxes $52 $ 296 $ 91
(1) Total revenues include gain or loss on sale, if applicable.
Cash Flows from Discontinued Operations
In millions of dollars 2014 2013 2012
Cash flows from operating activities $— $ 197 $(205)
Cash flows from investing activities —(207) 195
Cash flows from financing activities —— 16
Net cash provided by discontinued operations $— $ (10) $ 6
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 in
2013, 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. CCA
is reported as Discontinued operations for all periods presented.
Summarized financial information for Discontinued operations for the
operations related to CCA follows:
In millions of dollars 2014 2013 2012
Total revenues, net of interest expense (1) $— $ 74 $ 60
Income (loss) from discontinued operations $ (7) $(158) $(123)
Gain on sale —62 —
Provision (benefit) for income taxes (3) (30) (44)
Income (loss) from discontinued
operations, net of taxes $ (4) $ (66) $ (79 )
(1) Total revenues include gain or loss on sale, if applicable.
Cash Flows from Discontinued Operations
In millions of dollars 2014 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 $— $ — $—