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 losses from Discontinued operations, net of taxes, of $0 million and $3 million for the three months ended September 30, 2015 and 2014, respectively, and income from Discontinued operations, net of taxes, of $6 million and $53 million, for the nine months ended September 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 losses and income from Discontinued operations, net of taxes, of $0 million and $3 million for the three months ended September 30, 2015 and 2014, respectively, and income and losses from Discontinued operations, net of taxes, of $1 million and $5 million, for the nine months ended September 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 $10 million for both the three months ended September 30, 2015 and 2014, respectively, and losses from Discontinued operations, net of taxes, of $16 million and $29 million for the nine months ended September 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 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:



	Three Months Ended September 30,						Nine Months Ended September 30,
In millions of dollars	2015			2014			2015			2014
Total revenues, net of interest expense	$	—		$	2		$	—		$	75
Income (loss) from discontinued operations	$	(15	)	$	(25	)	$	(14	)	$	12
Provision (benefit) for income taxes	(5		)	(9		)	(5		)	13
Income (loss) from discontinued operations, net of taxes	$	(10	)	$	(16	)	$	(9	)	$	(1	)

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 during the fourth quarter of 2015. Income before taxes is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	216	$	223	$	570	$	710

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 September 30, 2015:



In millions of dollars	September 30, 2015
Assets
Cash and deposits with banks	$	523
Investments	1,403
Loans (net of allowance of $666 million)	7,731
Intangible assets	155
Other assets	417
Total assets	$	10,229
Liabilities
Long-term debt	$	6,179
Short-term borrowings	1,136
Other liabilities, due to/from subs	292
Other liabilities	1,106
Total liabilities	$	8,713

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 during the fourth quarter of 2015. Income before taxes is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	4	$	1	$	13	$	—

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 September 30, 2015:



In millions of dollars	September 30, 2015
Assets
Cash and deposits with banks	$	16
Loans (net of allowance of $23 million)	1,332
Goodwill	61
Other assets	77
Total assets	$	1,486
Liabilities
Other liabilities	$	463
Total liabilities	$	463

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 during the fourth quarter of 2015. Income before taxes is as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
In millions of dollars	2015			2014		2015			2014
Income (loss) before taxes	$	(22	)	$	5	$	(2	)	$	5

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 September 30, 2015 and December 31, 2014:



	September 30,		December 31,
In millions of dollars	2015		2014
Assets
Cash and deposits with banks	$	126	$	151
Loans (net of allowance of $1 million and $2 million at September 30, 2015 and December 31, 2014, respectively)	564		544
Goodwill	51		51
Other assets, advances to/from subs	19,036		19,854
Other assets	48		66
Total assets	$	19,825	$	20,666
Liabilities
Deposits	$	19,779	$	20,605
Other liabilities	46		61
Total liabilities	$	19,825	$	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 September 30, 2015 (OneMain, Japan cards and Japan retail) and December 31, 2014 (Japan retail):



In millions of dollars	September 30, 2015		December 31, 2014
Assets
Cash and deposits with banks	$	665	$	151
Investments	1,403		—
Loans (net of allowance of $690 million and $2 million at September 30, 2015 and December 31, 2014)	9,627		544
Goodwill	112		51
Intangible assets	155		—
Other assets, advances to/from subs	19,036		19,854
Other assets	542		66
Total assets	$	31,540	$	20,666
Liabilities
Deposits	$	19,779	$	20,605
Long-term debt	6,179		—
Short-term borrowings	1,136		—
Other liabilities, due to/from subs	292		—
Other liabilities	1,615		61
Total liabilities	$	29,001	$	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 September 30,				Nine Months Ended September 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	—	$	340	$	—	$	373

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 September 30,				Nine Months Ended September 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	—	$	173	$	—	$	133