Citibank 2015 Annual Report Download - page 167

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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
Citi sold its non-Citibank-branded cards and consumer finance business
in Brazil (Credicard) in 2013 and reported it as Discontinued operations.
Residual costs and resolution of certain contingencies from the disposal
resulted in income from Discontinued operations, net of taxes, of $6 million
and $52 million for 2015 and 2014, respectively.
Sale of Certain Citi Capital Advisors Business
Citi sold its liquid strategies business within Citi Capital Advisors (CCA)
pursuant to two separate transactions in 2013 and reported them as
Discontinued operations. Residual costs from the disposals resulted in
income and losses from Discontinued operations, net of taxes, of $1 million
and $4 million for 2015 and 2014, respectively.
Sale of Egg Banking plc Credit Card Business
Citi completed the sale of the Egg Banking plc (Egg) credit card business in
2011 and reported it as Discontinued operations. Residual costs from the
disposal resulted in losses from Discontinued operations, net of taxes, of
$61 million and $30 million for 2015 and 2014, respectively.
Audit of Citi German Consumer Tax Group
Citi completed the sale of its German retail banking operations in 2008 and
reported them as Discontinued operations. During 2014, residual costs from
the disposal resulted in a tax expense of $20 million.
Combined Results for Discontinued Operations
The following is summarized financial information for Credicard, CCA, Egg
and previous Discontinued operations for which Citi continues to have
minimal residual costs associated with the sales:
In millions of dollars 2015 2014 2013
Total revenues, net of interest expense (1) $ — $74 $1,086
Income (loss) from discontinued operations $(83) $10 $ (242)
Gain on sale —— 268
Provision (benefit) for income taxes (29) 12 (244)
Income (loss) from discontinued
operations, net of taxes $(54) $ (2) $ 270
(1) Total revenues include gain or loss on sale, if applicable.
Cash flows for the Discontinued operations were not material for all
periods presented.
Significant Disposals
The following sales completed during 2015 and 2014 were identified as
significant disposals. The major classes of assets and liabilities derecognized
from the Consolidated Balance Sheet at closing and the income (loss) before
taxes related to each business until the disposal date are presented below.
Sale of OneMain Financial Business
On November 15, 2015, Citi sold its OneMain Financial business, which
was part of Citi Holdings, including 1,100 retail branches, 5,500 employees,
and approximately 1.3 million customer accounts. One Main Financial
had approximately $10.2 billion of assets, including $7.8 billion of loans
(net of allowance), and $1.4 billion of available-for-sale securities. The
total amount of liabilities sold was $8.4 billion, including $6.2 billion of
long-term debt, and $1.1 billion of short-term borrowings. The transaction
generated a pre-tax gain on sale of $2.6 billion, recorded in Other revenue
($1.6 billion after-tax). However, when combined with the loss on
redemption of certain long-term debt supporting remaining Citi Holdings’
assets, the resulting net after-tax gain was $0.8 billion.
Income before taxes, excluding the pretax gain on sale and loss on
redemption of debt, is as follows:
In millions of dollars 2015 2014 2013
Income before taxes $663 $890 $923