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DISCONTINUED OPERATIONS, SIGNIFICANT DISPOSALS AND OTHER BUSINESS EXITS
 6 Months Ended
Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS, SIGNIFICANT DISPOSALS AND OTHER BUSINESS EXITS DISCONTINUED OPERATIONS, SIGNIFICANT DISPOSALS AND OTHER BUSINESS EXITS
Discontinued Operations
The Company’s results from Discontinued operations consisted of residual activities related to previously divested operations. All Discontinued operations results are recorded within Corporate/Other.
The following table summarizes financial information for all Discontinued operations:

Three Months Ended June 30,Six Months Ended June 30,
In millions of dollars2022202120222021
Total revenues, net of interest expense$— $— $— $— 
Income (loss) from discontinued operations(1)
$(262)$10 $(264)$8 
Benefit for income taxes(41)— (41)— 
Income (loss) from discontinued operations,
net of taxes		$(221)$10 $(223)$8 

(1)Amounts in each period relate to the sale of the Egg Banking business in 2011.

During the second quarter of 2022, the Company finalized the settlement of certain liabilities related to its legacy consumer operation in the U.K. (the legacy operation), including an indemnification liability related to its sale of the Egg Banking business in 2011, which led to the substantial liquidation of the legacy operation. As a result, a CTA loss (net of hedges) in AOCI of approximately $400 million pretax ($345 million after-tax) related to the legacy operation was released to earnings in the current period. Out of the total CTA release, a $260 million pretax loss ($221 million after-tax loss) was attributable to the Egg Banking business noted above, reported in Discontinued operations, and therefore the corresponding CTA release was also reported in Discontinued operations during the second quarter. The remaining CTA release of a $140 million pretax loss ($124 million after-tax loss) related to Legacy Holdings Assets was reported as part of Continuing operations within Legacy Franchises.
While the legacy operation was divested in multiple sales over the years, each transaction did not result in substantial liquidation given that Citi retained certain liabilities noted above, which were gradually settled over time until reaching the point of substantial liquidation during the second quarter, triggering the release of the CTA loss to earnings.

Cash flows from Discontinued operations were not material for the periods presented.
Significant Disposals
Citi entered into agreements to sell nine consumer banking businesses that, in aggregate, will result in a transfer to HFS of approximately $29 billion in assets, including $19 billion of loans (net of allowance of $409 million) and approximately $23 billion in liabilities, including $22 billion in deposits as of June 30, 2022. As a result, these assets and liabilities held by each business were reclassified to HFS within Other assets and Other liabilities, respectively, on the Consolidated Balance Sheet. The following five consumer banking business sale agreements (of nine) were identified as significant disposals that are recorded within the Legacy Franchises segment. All open sales agreements in the table below are subject to regulatory approvals and other closing conditions.

June 30, 2022
In millions of dollarsAssetsLiabilities
Consumer banking business inSale agreement dateExpected closeCash and deposits with banks
Loans(1)
Goodwill(2)
Other assets, advances to/from subsidiariesOther assetsTotal assetsDepositsLong-term debtOther liabilitiesTotal liabilities
Australia(3)
8/9/21closed on 6/1/2022$— $— $— $— $— $— $— $— $— $— 
Philippines(4)
12/23/21closed on 8/1/202231 1,170 244 511 37 1,993 1,208 — 78 1,286 
Thailand(4)
1/14/22second half 2022$15 $2,485 $160 $215 $84 $2,959 $925 $— $133 $1,058 
Taiwan(4)
1/28/22second half 2023104 7,878 212 4,855 199 13,248 10,350 — 214 10,564 
India(4)
3/30/22first half 202329 3,515 346 2,482 102 6,474 5,916 — 184 6,100 
Income (loss) before taxes(5)
Three Months Ended June 30,Six Months Ended June 30,
In millions of dollars2022
2021
20222021
Australia(3)
$28 $69 $193 $142 
Philippines14 31 65 67 
Thailand90 43 78 91 
Taiwan50 65 96 150 
India52 29 125 98 

(1)    Loans, net of allowance as of June 30, 2022: Philippines $80 million, Thailand $80 million, Taiwan $57 million and India $51 million.
(2)    For Thailand, includes intangible assets.
(3)    On June 1, 2022, Citi completed the sale of its Australia consumer banking business, which was a part of Legacy Franchises. The Australia consumer banking business had approximately $9.4 billion in assets, including $9.3 billion of loans (net of allowance of $140 million) and excluding goodwill. The total amount of liabilities was $7.3 billion including $6.8 billion in deposits. The transaction generated a pretax loss on sale of approximately $800 million ($665 million after-tax), subject to closing adjustments, recorded in Other revenue. The loss on sale primarily reflected the impact of an approximate pretax $620 million currency translation adjustment (CTA) loss (net of hedges) ($470 million after-tax) already reflected in the Accumulated other comprehensive income (AOCI) component of equity. The sale closed on June 1, 2022, and the CTA-related balance was removed from the AOCI component of equity, resulting in a neutral CTA impact to Citi’s Common Equity Tier 1 Capital. The income before taxes shown in the above table for Australia reflects the two months of Citi’s ownership through June 1, 2022.
(4)    These sales are expected to result in an after-tax gain upon closing.
(5)    Income before taxes for the period in which the individually significant component was classified as HFS for all prior periods presented. For Australia, excludes the pretax loss on sale.

Citi did not have any other significant disposals to report as of June 30, 2022. As of August 3, 2022, Citi had not entered into any other definitive sales agreements related to its recently announced intention to pursue exits of its consumer franchises in 12 remaining markets across Asia and EMEA.
For a description of the Company’s significant disposal transactions in prior periods and financial impact, see Note 2 to the Consolidated Financial Statements in Citi’s 2021 Form 10-K.

Other Business Exits

Wind-Down of Korea Consumer Banking Business
On October 25, 2021, Citi announced its decision to wind down and close its Korea consumer banking business, which is reported in the Legacy Franchises operating segment. In connection with the announcement, Citibank Korea Inc. (CKI) commenced a voluntary early termination program (Korea VERP). Due to the voluntary nature of this termination program, no liabilities for termination benefits are recorded until CKI makes formal offers to employees that are then irrevocably accepted by those employees. Related charges are recorded as Compensation and benefits.
During the first quarter of 2022, Citi recorded an additional pretax charge of $31 million, composed of gross charges connected to the Korea VERP.
The following table summarizes the reserve charges related to the Korea VERP and other initiatives reported in the Legacy Franchises operating segment and Corporate/Other:

In millions of dollarsEmployee termination costs
Total Citigroup (pretax)
Original charges$1,052 
Utilization(1)
Foreign exchange3 
Balance at December 31, 2021$1,054 
Additional charges$31 
Utilization(347)
Foreign exchange(24)
Balance at March 31, 2022$714 
Additional charges (releases)$(3)
Utilization(670)
Foreign exchange(41)
Balance at June 30, 2022$— 

The total estimated cash charges for the wind-down are $1.1 billion, most of which were recognized in 2021.
See Note 8 for details on the pension impact of the Korea wind-down.