DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

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 loss from Discontinued operations, net of taxes, of $0 million and $2 million for the three months ended March 31, 2016 and 2015, 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 from Discontinued operations, net of taxes, of $0 million and $1 million for the three months ended March 31, 2016 and 2015, respectively.

Sale of Egg Banking plc Credit Card Business

Citi sold 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 $4 million for the three months ended March 31, 2016 and 2015, respectively.

Combined Results for Discontinued Operations

The following is summarized financial information for previous Discontinued operations for which Citi continues to have minimal residual costs associated with the sales:

	Three Months Ended March 31,
In millions of dollars	2016			2015
Total revenues, net of interest expense(1)	$	—		$	—
Losses from discontinued operations	$	(3	)	$	(8	)
Gain on sale	—			—
Provision for income taxes	(1		)	(3		)
Losses from discontinued operations, net of taxes	$	(2	)	$	(5	)

(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 2016 and 2015 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.

Novation of the 80% Primerica Coinsurance Agreement

During the first quarter of 2016, Citi completed a novation (an arrangement that extinguishes Citi`s rights and obligations under a contract) of the Primerica 80% Coinsurance Agreement to a third party re-insurer, resulting in revenue of $422 million recorded in Other revenue ($274 million after tax). Furthermore, the novation resulted in derecognition of $1.5 billion available for-sale securities and cash, $0.95 billion of deferred acquisition costs and $2.7 billion of insurance liabilities.

Income before taxes, excluding the revenue upon novation, was as follows:

	Three Months Ended March 31,
In millions of dollars	2016		2015
Income before taxes	$	—	$	35

Sale of OneMain Financial Business

On November 15, 2015, Citi sold its OneMain Financial business, which was reported in Citi Holdings, including 1,100 retail branches, 5,500 employees, and approximately 1.3 million customer accounts. OneMain 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 pretax gain on sale of $2.6 billion, recorded in Other revenue ($1.6 billion after-tax) during the fourth quarter of 2015. However, when combined with the loss on redemption of certain long-term debt supporting remaining Citi Holdings’ assets during the fourth quarter of 2015, the resulting net after-tax gain was $0.8 billion.

Income before taxes was as follows:

	Three Months Ended March 31,
In millions of dollars	2016		2015
Income before taxes	$	—	$	177