DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

Discontinued Operations

The following sales are reported as Discontinued operations 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. Residual costs and resolution of certain contingencies from the disposal resulted in income from Discontinued operations, net of taxes, of $0 million and $0 million for the three months ended September 30, 2016 and 2015, respectively, and $0 million and $6 million for the nine months ended September 30, 2016 and 2015, respectively.

Sale of Egg Banking plc Credit Card Business

Citi sold the Egg Banking plc credit card business in 2011. Residual costs from the disposal resulted in losses from Discontinued operations, net of taxes, of $24 million and $10 million for the three months ended September 30, 2016 and 2015, respectively, and $46 million and $16 million for the nine months ended September 30, 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   September 30,						Nine Months Ended   September 30,
In millions of dollars	2016			2015			2016			2015
Total revenues, net of interest expense(1)	$	—		$	—		$	—		$	—
Income (loss) from discontinued operations	$	(37	)	$	(15	)	$	(76	)	$	(14	)
Provision (benefit) for income taxes	(7		)	(5		)	(21		)	(5		)
Income (loss), from discontinued operations, net of taxes	$	(30	)	$	(10	)	$	(55	)	$	(9	)

(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 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) during the first quarter of 2016. Furthermore, the novation resulted in derecognition of $1.5 billion of 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   September 30,				Nine Months Ended   September 30,
In millions of dollars	2016		2015		2016		2015
Income before taxes	$	—	$	33	$	—	$	103

Sale of OneMain Financial Business

During the fourth quarter of 2015, Citi sold OneMain Financial (OneMain), which was reported in Citi Holdings, including 1,100 retail branches, 5,500 employees, and approximately 1.3 million customer accounts. OneMain 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. OneMain also had $8.4 billion of liabilities, 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   September 30,				Nine Months Ended   September 30,
In millions of dollars	2016		2015		2016		2015
Income before taxes	$	—	$	216	$	—	$	570