DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

Summary of Discontinued Operations

The Company’s discontinued operations consisted of residual activities related to the sales of the Brazil Credicard business in 2013, the Egg Banking plc Credit Card Business in 2011 and the German Retail Banking business in 2008. All discontinued operations results are recorded within Corporate/Other.

The following summarizes financial information for all discontinued operations:



In millions of dollars	2017			2016			2015
Total revenues, net of interest expense	$	—		$	—		$	—
Income (loss) from discontinued operations	$	(104	)	$	(80	)	$	(83	)
Provision (benefit) for income taxes	7			(22		)	(29		)
Loss from discontinued operations, net of taxes	$	(111	)	$	(58	)	$	(54	)

Cash flows for discontinued operations were not material for all periods presented.

Significant Disposals

The transactions during 2017, 2016 and 2015 described below 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 Mexico Asset Management Business

On November 27, 2017, Citi entered into an agreement to sell its Mexico asset management business, which is part of Latin America GCB. The transaction is expected to result in a pretax gain on sale at closing, which is anticipated to occur during the second half of 2018, subject to regulatory approval and other customary closing conditions. The transaction will also result in derecognition of approximately $72 million of net book value, including $32 million of goodwill. Income before taxes of the business was as follows:



In millions of dollars	2017		2016		2015
Income before taxes	$	164	$	155	$	159

Sale of Fixed Income Analytics and Index Business

On August 31, 2017, Citi completed the sale of a fixed income analytics business (Yield Book) and a fixed income index business that were part of Markets and Securities Services within Institutional Clients Group (ICG). As part of the sale, Citi derecognized total assets of $112 million, including goodwill of $72 million, while the derecognized liabilities were $18 million. The transaction generated a pretax gain on sale of $580 million ($355 million after-tax) recorded in Other Revenue in ICG during 2017.

Income before taxes for the divested businesses, excluding the pretax gain on sale, was as follows:



In millions of dollars	2017		2016		2015
Income before taxes	$	31	$	55	$	54

Exit of U.S. Mortgage Service Operations

Citigroup executed agreements during the first quarter of 2017 to effectively exit its direct U.S. mortgage servicing operations by the end of 2018 to intensify focus on originations. The exit of the mortgage servicing operations included the sale of mortgage servicing rights and execution of a subservicing agreement for the remaining Citi-owned loans and certain other mortgage servicing rights. As part of this transaction, Citi has also transferred certain employees.

This transaction, which was part of Corporate/Other, resulted in a pretax loss of $331 million ($207 million after-tax) recorded in Other revenue during 2017. The loss on sale did not include certain other costs and charges related to the disposed operation recorded primarily in Operating expenses during 2017, resulting in a total pretax loss of $382 million. As part of the completed sale, during 2017, Citi derecognized a total of $1,162 million of servicing-related assets, including $1,046 million of mortgage servicing rights, related to approximately 750,000 Fannie Mae and Freddie Mac held loans with outstanding balances of approximately $93 billion. Excluding the loss on sale and the additional charges, income before taxes for the disposed operation was immaterial for 2017, 2016 and 2015.

Sale of CitiFinancial Canada Consumer Finance Business

On March 31, 2017, Citi completed the sale of CitiFinancial Canada (CitiFinancial), which was part of Corporate/Other, and included 220 retail branches and approximately 1,400 employees. As part of the sale, Citi derecognized total assets of approximately $1.9 billion, including $1.7 billion consumer loans (net of allowance), and total liabilities of approximately $1.5 billion related to intercompany borrowings, which were settled at closing of the transaction. Separately, during 2017 and prior to closing of the transaction, CitiFinancial settled $0.4 billion of debt issued through loan securitizations. The sale of CitiFinancial generated a pretax gain on sale of $350 million recorded in Other revenue ($178 million after-tax) during 2017.

Income before taxes, excluding the pretax gain on sale, was as follows:



In millions of dollars	2017		2016		2015
Income before taxes	$	41	$	139	$	118

Novation of the Primerica 80% Coinsurance Agreement

Effective January 1, 2016, Citi completed a novation (an

arrangement that extinguishes Citi’s rights and obligations

under a contract) of the Primerica 80% coinsurance

agreement, which was recorded in Corporate/Other, to a third-party re-insurer. The novation resulted in revenues of $404 million recorded in Other revenue ($263 million after-tax) during 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:



In millions of dollars	2017		2016		2015
Income before taxes	$	—	$	—	$	135

Sale of OneMain Financial Business

On November 15, 2015, Citi sold OneMain Financial (OneMain), which was part of Corporate/Other, 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) in 2015. However, when combined with the loss on redemption of certain long-term debt supporting certain Corporate/Other assets during the fourth quarter of 2015, 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, was as follows:



In millions of dollars	2017		2016		2015
Income before taxes	$	—	$	—	$	663

Sale of Japan Cards Business

On December 14, 2015, Citi sold its Japan cards business, which was part of Corporate/Other, including $1,350 million of consumer loans (net of allowance), approximately 720,000 customer accounts and 840 employees. The transaction generated a pretax gain on sale of $180 million, recorded in Other revenue ($155 million after-tax) in 2015.

Loss before taxes, excluding the pretax gain on sale, was as follows:



In millions of dollars	2017		2016		2015
Loss before taxes	$	—	$	—	$	(5	)

Sale of Japan Retail Banking Business

On November 1, 2015, Citi sold its Japan retail banking business, which was part of Corporate/Other, including $563 million of consumer loans (net of allowance), $20 billion of deposits, approximately 725,000 customer accounts, 1,600 employees and 32 branches. The transaction generated a pretax gain on sale of $446 million, recorded in Other revenue ($276 million after-tax) in 2015.

Loss before taxes, excluding the pretax gain on sale, was as follows:



In millions of dollars	2017		2016		2015
Loss before taxes	$	—	$	—	$	(57	)