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 resulted in income from Discontinued operations, net of taxes, of $8 million and $3 million, for the three months ended June 30, 2015 and 2014, respectively, and income from Discontinued operations, net of taxes, of $6 million and $56 million, for the six months ended June 30, 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. Citigroup retained a 24.9% passive equity interest in the management company (which is held in Citi’s Institutional Clients Group segment). Residual costs from the disposals resulted in no income or losses from Discontinued operations, net of taxes for the three months ended June 30, 2015 and 2014, respectively and income from Discontinued operations, net of taxes, of $1 million and losses from Discontinued operations, net of taxes, of $2 million for the six months ended June 30, 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 $2 million and $5 million for the three months ended June 30, 2015 and 2014, respectively and losses from Discontinued operations, net of taxes, of $6 million and $19 million, for the six months ended June 30, 2015 and 2014, respectively.

Audit of Citi German Consumer Tax Group

Citi completed the sale of its German retail banking operations in 2008 and has reported them as Discontinued operations. During 2014, residual costs associated with German retail banking operations 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:



	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2015		2014			2015		2014
Total revenues, net of interest expense	$	—	$	4		$	—	$	73
Income (loss) from discontinued operations	$	9	$	(3	)	$	1	$	37
Provision (benefit) for income taxes	3		19			—		22
Income (loss) from discontinued operations, net of taxes	$	6	$	(22	)	$	1	$	15

Cash flows for the Discontinued operations were not material for all periods presented.

Significant Disposals

The following sales were identified as significant disposals, including the assets and liabilities that were reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet and the Income (loss) before taxes (benefits) related to each business.

Agreement to Sell OneMain Financial Business

On March 3, 2015, Citi entered into an agreement to sell its OneMain Financial business that is part of Citi Holdings. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to occur in the third quarter of 2015. Income before taxes is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	168	$	226	$	346	$	487

The following assets and liabilities of the OneMain Financial business were identified and reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet at June 30, 2015:



In millions of dollars	June 30, 2015
Assets
Cash and deposits with banks	$	420
Investments	1,444
Loans (net of allowance of $684 million)	7,533
Intangible assets	152
Other assets	361
Total assets	$	9,910
Liabilities
Long-term debt	$	5,923
Other liabilities, due to/from subs	2,033
Other liabilities	1,453
Total liabilities	$	9,409

Agreement to Sell Japan Cards Business

On March 31, 2015, Citi entered into an agreement to sell its Japan cards business that is part of Citi Holdings effective January 1, 2015. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to occur by the fourth quarter of 2015. Income before taxes is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2015		2014			2015		2014
Income before taxes	$	10	$	(1	)	$	9	$	(1	)

The following assets and liabilities of the Japan cards business were identified and reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet at June 30, 2015:



In millions of dollars	June 30, 2015
Assets
Cash and deposits with banks	$	16
Loans (net allowance of $23 million)	1,341
Goodwill	61
Other assets	73
Total assets	$	1,491
Liabilities
Other liabilities	$	455
Total liabilities	$	455

Agreement to Sell Japan Retail Banking Business

On December 25, 2014, Citi entered into an agreement to sell its Japan retail banking business that is part of Citi Holdings effective January 1, 2015. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to occur by the fourth quarter of 2015. Income before taxes is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2015		2014			2015		2014
Income before taxes	$	20	$	(2	)	$	20	$	—

The following assets and liabilities of the Japan retail banking business were identified and reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet at June 30, 2015 and December 31, 2014:



	June 30,		Dec. 31,
In millions of dollars	2015		2014
Assets
Cash and deposits with banks	$	97	$	151
Loans (net of allowance of $1 million and $2 million at June 30, 2015 and December 31, 2014)	545		544
Goodwill	51		51
Other assets, advances to/from subs	19,286		19,854
Other assets	58		66
Total assets	$	20,037	$	20,666
Liabilities
Deposits	$	19,982	$	20,605
Other liabilities	55		61
Total liabilities	$	20,037	$	20,666

Combined Significant Disposals—HFS Balance Sheet Reclassifications

The following assets and liabilities of the Japan retail banking, Japan cards business and OneMain Financial business were identified and reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet at June 30, 2015 (OneMain, Japan cards and Japan retail) and December 31, 2014 (Japan retail):



In millions of dollars	June 30, 2015		Dec. 31, 2014
Assets
Cash and deposits with banks	$	533	$	151
Investments	1,444		—
Loans (net of allowance of $708 million and $2 million at June 30, 2015 and December 31, 2014)	9,419		544
Goodwill	112		51
Intangible assets	152		—
Other assets, advances to/from subs	19,286		19,854
Other assets	492		66
Total assets	$	31,438	$	20,666
Liabilities
Deposits	$	19,982	$	20,605
Long-term debt	5,923		—
Other liabilities, due to/from subs	2,033		—
Other liabilities	1,963		61
Total liabilities	$	29,901	$	20,666

Sale of Spain Consumer Operations

On September 22, 2014, Citi sold its consumer operations in Spain, which were part of Citi Holdings, including $1.7 billion of consumer loans (net of allowance), $3.4 billion of assets under management, $2.2 billion of customer deposits, 45 branches, 48 ATMs and 938 employees, with the buyer assuming the related current pension commitments at closing. The transaction generated a pretax gain on sale of $243 million ($131 million after-tax). Income before taxes is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	—	$	12	$	—	$	33

Sale of Greece Consumer Operations

On September 30, 2014, Citi sold its consumer operations in Greece, which were part of Citi Holdings, including $353 million of consumer loans (net of allowance), $1.1 billion of assets under management, $1.2 billion of customer deposits, 20 branches, 85 ATMs and 719 employees, with the buyer assuming certain limited pension obligations related to Diners’ Club’s employees at closing. The transaction generated a pretax gain on sale of $209 million ($91 million after-tax).

Income before taxes is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2015		2014			2015		2014
Income before taxes	$	—	$	(25	)	$	—	$	(40	)