DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2013

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

2.     DISCONTINUED OPERATIONS

Sale of Brazil Credicard business

        On May 14, 2013, Citi entered into a definitive agreement to sell Credicard, its non-Citibank branded cards and consumer finance business in Brazil (Brazil Credicard), which is part of the Global Consumer Banking segment, for approximately $1.24 billion to Banco Itau Unibanco. The sale is currently expected to result in an after-tax gain of approximately $250 million upon closing (expected to occur by early 2014, subject to Brazilian regulatory approvals). Citi will retain its Citi-branded and Diners credit cards, along with certain affluent segments currently associated with Credicard, which will be re-branded as Citi.

        Brazil Credicard is reported as discontinued operations for the current and all historical periods.

        The following is a summary as of September 30, 2013 of the assets held for sale on the Consolidated Balance Sheet related to Brazil Credicard:

In millions of dollars	September 30, 2013
Assets
Deposits at interest with banks	$	82
Loans (net allowance of $359)		2,699
Goodwill and intangible assets		267
Other assets		272
Total assets	$	3,320

        Summarized financial information for Discontinued operations for the credit card operations related to Brazil Credicard follows:

	Three Months Ended Sept. 30,				Nine Months Ended Sept. 30,
In millions of dollars	2013		2012		2013		2012
Total revenues, net of interest expense	$	223	$	248	$	738	$	788
Income from discontinued operations	$	36	$	45	$	143	$	76
Income taxes		12		6		49		12
Income from discontinued operations, net of taxes	$	24	$	39	$	94	$	64

Sale of Certain Citi Capital Advisors Business

        During the third quarter of 2012, the Company executed definitive agreements to transition a carve-out of its liquid strategies business within Citi Capital Advisors (CCA), which is part of the Institutional Clients Group segment, to certain employees responsible for managing those operations. This transition occurred pursuant to two separate transactions, creating two separate management companies, with each such transaction accounted for as a sale. At the close of the first transaction in February 2013, Citigroup retained a 24.9% passive equity interest in the management company created as a result of the sale (which will continue to be held in Citi's Institutional Clients Group segment). The second transaction closed in August 2013.

        This sale is reported as discontinued operations for the second half of 2012 and forward. Prior periods were not reclassified due to the immateriality of the impact in those periods.

        Summarized financial information for Discontinued operations for the operations related to CCA follows:

	Three Months Ended Sept. 30,						Nine Months Ended Sept. 30,
In millions of dollars	2013			2012			2013			2012
Total revenues, net of interest expense	$	8		$	11		$	73		$	11
Loss from discontinued operations	$	(21	)	$	(45	)	$	(152	)	$	(45	)
Gain on sale		6			—			62			—
Benefit for income taxes		(5	)		(16	)		(28	)		(16	)
Loss from discontinued operations, net of taxes	$	(10	)	$	(29	)	$	(62	)	$	(29	)

Sale of Egg Banking plc Credit Card Business

        On March 1, 2011, the Company announced that Egg Banking plc (Egg), an indirect subsidiary that was part of Citi Holdings, entered into a definitive agreement to sell its credit card business to Barclays PLC. The sale closed on April 28, 2011.

        This sale is reported as discontinued operations for 2011 and forward; 2010 was not reclassified due to the immateriality of the impact in that period. An after-tax gain on sale of $126 million was recognized upon closing. Egg operations had total assets and total liabilities of approximately $2.7 billion and $39 million, respectively, at the time of sale.

        Summarized financial information for Discontinued operations for the credit card operations related to Egg follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions of dollars	2013			2012			2013			2012
Total revenues, net of interest expense	$	—		$	—		$	—		$	1
Loss from discontinued operations	$	(9	)	$	(1	)	$	(37	)	$	(4	)
Loss on sale		—			—			—			(1	)
Benefit for income taxes		(3	)		(1	)		(13	)		(2	)
Loss from discontinued operations, net of taxes	$	(6	)	$	—		$	(24	)	$	(3	)

Audit of Citi German Consumer Tax Group

        Citi sold its German retail banking operations in 2007 and reported them as discontinued operations. During the third quarter of 2013, German tax authorities concluded their audit of Citi's German Consumer tax group for the years 2005-2008. This resolution resulted in a pretax benefit of $27 million and a tax benefit of $57 million ($85 million total net income benefit) during the third quarter of 2013, all of which was included in discontinued operations.

Combined Results for Discontinued Operations

        The following is summarized financial information for Brazil Credicard, CCA, Egg, the German tax benefit 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	2013			2012			2013			2012
Total revenues, net of interest expense	$	231		$	259		$	811		$	800
Income from discontinued operations	$	33		$	(1	)	$	(19	)	$	27
Gain (loss) on sale		6			—			62			(1	)
Provision for income taxes (benefits)		(53	)		(9	)		(46	)		(1	)
Income from discontinued operations, net of taxes	$	92		$	8		$	89		$	27