INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of components of income tax expense (benefit)

In millions of dollars	2013			2012			2011
Current
Federal	$	(260	)	$	(71	)	$	(144	)
Foreign	3,788			3,869			3,552
State	(41		)	300			241
Total current income taxes	$	3,487		$	4,098		$	3,649
Deferred
Federal	$	2,550		$	(4,943	)	$	(793	)
Foreign	(716		)	900			628
State	546			(48		)	91
Total deferred income taxes	$	2,380		$	(4,091	)	$	(74	)

Schedule of reconciliation of income tax expense (benefit)

Provision (benefit) for income tax on continuing operations before noncontrolling interests (1)	$	5,867		$	7		$	3,575
Provision (benefit) for income taxes on discontinued operations	(244		)	(52		)	12
Provision (benefit) for income taxes on cumulative effect of accounting changes	—			(58		)	—
Income tax expense (benefit) reported in stockholders’ equity related to:
Foreign currency translation	5			(709		)	(609		)
Investment securities	(1,353		)	369			1,495
Employee stock plans	28			265			297
Cash flow hedges	625			311			(92		)
Benefit Plans	698			(390		)	(235		)
Income taxes before noncontrolling interests	$	5,626		$	(257	)	$	4,443

(1) Includes the effect of securities transactions and other-than-temporary-impairment losses resulting in a provision (benefit) of $262 million and $(187) million in 2013, $1,138 million and $(1,740) million in 2012 and $699 million and $(789) million in 2011, respectively.

Reconciliation of the federal statutory income tax rate to the Company's effective income tax rate applicable to income from continuing operations (before noncontrolling interests and the cumulative effect of accounting changes)

	2013		2012		2011
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.7		3.0		1.5
Foreign income tax rate differential	(2.2	)	(4.6	)	(8.4	)
Audit settlements (1)	(0.6	)	(11.8	)	—
Effect of tax law changes (2)	(0.3	)	(0.1	)	2.0
Basis difference in affiliates	—		(9.2	)	—
Tax advantaged investments	(4.2	)	(12.4	)	(6.0	)
Other, net	0.7		0.2		0.2
Effective income tax rate	30.1	%	0.1	%	24.3	%

(1) For 2013, relates to the settlement of U.S. federal issues for 2003-2005 at IRS appeals. For 2012, relates to the conclusion of the audit of various issues in the Company’s 2006-2008 U.S. federal tax audits and the conclusion of a New York City tax audit for 2006-2008.

(2) For 2011, includes the results of the Japan tax rate change which resulted in a $300 million DTA charge.

Deferred income taxes

In millions of dollars	2013			2012
Deferred tax assets
Credit loss deduction	$	8,356		$	10,947
Deferred compensation and employee benefits	4,067			4,890
Restructuring and settlement reserves	1,806			1,645
Unremitted foreign earnings	6,910			5,114
Investment and loan basis differences	4,409			3,878
Cash flow hedges	736			1,361
Tax credit and net operating loss carry-forwards	26,097			28,087
Fixed assets and leases	666			—
Debt Issuances	—			614
Other deferred tax assets	2,734			1,964
Gross deferred tax assets	$	55,781		$	58,500
Valuation allowance	—			—
Deferred tax assets after valuation allowance	$	55,781		$	58,500
Deferred tax liabilities
Deferred policy acquisition costs and value of insurance in force	$	(455	)	$	(495	)
Fixed assets and leases	—			(623		)
Intangibles	(1,076		)	(1,517		)
Debt issuances	(811		)	—
Other deferred tax liabilities	(640		)	(543		)
Gross deferred tax liabilities	$	(2,982	)	$	(3,178	)
Net deferred tax assets	$	52,799		$	55,322

Roll-forward of the company's unrecognized tax benefits

In millions of dollars	2013			2012			2011
Total unrecognized tax benefits at January 1	$	3,109		$	3,923		$	4,035
Net amount of increases for current year’s tax positions	58			136			193
Gross amount of increases for prior years’ tax positions	251			345			251
Gross amount of decreases for prior years’ tax positions	(716		)	(1,246		)	(507		)
Amounts of decreases relating to settlements	(1,115		)	(44		)	(11		)
Reductions due to lapse of statutes of limitation	(15		)	(3		)	(38		)
Foreign exchange, acquisitions and dispositions	2			(2		)	—
Total unrecognized tax benefits at December 31	$	1,574		$	3,109		$	3,923

Schedule of interest and penalties included in the provision for income taxes

	2013						2012				2011
In millions of dollars	Pretax			Net of tax			Pretax		Net of tax		Pretax		Net of tax
Total interest and penalties in the Consolidated Balance Sheet at January 1	$	492		$	315		$	404	$	261	$	348	$	223
Total interest and penalties in the Consolidated Statement of Income	(108		)	(72		)	114		71		61		41
Total interest and penalties in the Consolidated Balance Sheet at December 31 (1)	277			173			492		315		404		261

(1) Includes $2 million, $10 million and $14 million for foreign penalties in 2013, 2012 and 2011, respectively. Also includes $4 million for state penalties in 2013, 2012 and 2011.

Major tax Jurisdictions and the earliest tax year subject to examination

Jurisdiction		Tax year
United States		2009
Mexico		2008
New York State and City		2005
United Kingdom		2012
India		2009
Brazil		2009
Singapore		2007
Hong Kong		2007
Ireland		2010

Schedule of deferred tax assets and liabilities by jurisdiction

In billions of dollars

Jurisdiction/component	DTAs balance December 31, 2013		DTAs balance December 31, 2012
U.S. federal (1)
Net operating losses (NOLs)(2)	$	1.4	$	0.8
Foreign tax credits (FTCs)(3)	19.6		22.0
Consolidated tax return general business credits (GBCs)	2.5		2.6
Future tax deductions and credits	21.5		22.0
Other	—		0.1
Total U.S. federal	$	45.0	$	47.5
State and local
New York NOLs	$	1.4	$	1.3
Other state NOLs	0.5		0.6
Future tax deductions	2.4		2.6
Total state and local	$	4.3	$	4.5
Foreign
APB 23 subsidiary NOLs	$	0.2	$	0.2
Non-APB 23 subsidiary NOLs	1.2		1.2
Future tax deductions	2.1		1.9
Total foreign	$	3.5	$	3.3
Total	$	52.8	$	55.3

(1) Included in the net U.S. federal DTAs of $45.0 billion as of December 31, 2013 were deferred tax liabilities of $2 billion that will reverse in the relevant carry-forward period and may be used to support the DTAs.

(2) Includes $0.6 billion and $0.8 billion for 2013 and 2012, respectively, of NOL carry-forwards related to non-consolidated tax return companies that are expected to be utilized separately from Citigroup’s consolidated tax return and $0.8 billion of non-consolidated tax return NOL carry-forwards for 2013 that are eventually expected to be utilized in Citigroup’s consolidated tax return.

(3) Includes $0.7 billion of non-consolidated tax return FTC carry-forwards that are eventually expected to be utilized in Citigroup’s consolidated tax return.

Summarization of amounts of tax carryforwards and their expiration dates

	Amount
Year of expiration	December 31, 2013		December 31, 2012
U.S. tax return foreign tax credit carry-forwards
2016	$	—	$	0.4
2017	4.7		6.6
2018	5.2		5.3
2019	1.2		1.3
2020	3.1		2.3
2021	1.4		1.9
2022	3.3		4.2
2023(1)	0.7		—
Total U.S. tax return foreign tax credit carry-forwards	$	19.6	$	22.0
U.S. tax return general business credit carry-forwards
2027	$	—	$	0.3
2028	0.4		0.4
2029	0.4		0.4
2030	0.4		0.5
2031	0.4		0.5
2032	0.5		0.5
2033	0.4		—
Total U.S. tax return general business credit carry-forwards	$	2.5	$	2.6
U.S. subsidiary separate federal NOL carry-forwards
2027	$	0.2	$	0.2
2028	0.1		0.1
2030	0.3		0.3
2031	1.7		1.8
2033	1.7		—
Total U.S. subsidiary separate federal NOL carry-forwards (2)	$	4.0	$	2.4
New York State NOL carry-forwards
2027	$	0.1	$	0.1
2028	6.5		7.2
2029	2.0		1.9
2030	0.1		0.4
2032	0.9		—
Total New York State NOL carry-forwards (2)	$	9.6	$	9.6
New York City NOL carry-forwards
2027	$	0.1	$	0.1
2028	3.9		3.7
2029	1.5		1.6
2032	0.6		0.2
Total New York City NOL carry-forwards (2)	$	6.1	$	5.6
APB 23 subsidiary NOL carry-forwards
Various	$	0.2	$	0.2
Total APB 23 subsidiary NOL carry-forwards	$	0.2	$	0.2

(1) The $0.7 billion in FTC carry-forwards that expires in 2023 is in a non-consolidated tax return entity but is eventually expected to be utilized in Citigroup’s consolidated tax return.

(2) Pretax.