Goodwill and intangible assets

  
2. DISCONTINUED OPERATIONS, SIGNIFICANT DISPOSALS AND OTHER BUSINESS EXITS  
Summary of Discontinued OperationsThe Company’s results from Discontinued operations consisted of residual activities related to the sales of 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 table summarizes financial information for all Discontinued operations:  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions of dollars | 2021 | 2020 | 2019 |
| Total revenues, net of interest expense | $ | —  |  | $ | —  |  | $ | —  |  |
| Income (loss) from discontinued operations | $ | 7  |  | $ | (20) |  | $ | (31) |  |
|  |  |  |  |
| Benefit for income taxes | —  |  | —  |  | (27) |  |
| Income (loss) from discontinued operations, net of taxes | $ | 7  |  | $ | (20) |  | $ | (4) |  |

  
Cash flows from Discontinued operations were not material for any period presented.  
Significant DisposalsThe following transactions were identified as significant disposals that are recorded within the GCB segment, including the assets and liabilities that were reclassified to held-for-sale within Other assets and Other liabilities on the Consolidated Balance Sheet and the Income (loss) before taxes (benefits) related to each business.  
Agreement to Sell Australia Consumer Banking BusinessOn August 9, 2021, Citi entered into an agreement to sell its Australia consumer banking business, which is part of Asia GCB. The sale, which is subject to regulatory approvals and other closing conditions, is expected to close in the first half of 2022. As of December 31, 2021, Citi reported the business as held-for-sale, resulting in a pretax loss on sale of approximately $700 million recorded in Other revenue ($600 million after-tax), subject to closing adjustments. The loss on sale primarily reflected the impact of a pretax $625 million currency translation adjustment (CTA) loss (net of hedges) ($475 million after-tax) already reflected in the Accumulated other comprehensive income (AOCI) component of equity. Upon closing, the CTA-related balance will be removed from the AOCI component of equity, resulting in a neutral CTA impact to Citi’s Common Equity Tier 1 Capital. Income before taxes, excluding the above referenced pretax loss on sale, for the Australia consumer banking business was as follows:  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions of dollars | 2021 | 2020 | 2019 |
| Income before taxes | $ | 306  |  | $ | 181  |  | $ | 302  |  |

  
The following assets and liabilities for the Australia consumer banking business were identified and reclassified to held-for-sale within Other assets and Other liabilities on the Consolidated Balance Sheet at December 31, 2021:  


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| In millions of dollars | December 31, 2021 |
| Assets |  |
| Cash and deposits with banks | $ | 24  |  |
| Loans (net of allowance of $242 million at December 31, 2021) | 8,813  |  |
| Goodwill and intangible assets | 257  |  |
| Other assets | 81  |  |
| Total assets | $ | 9,175  |  |
| Liabilities |  |
| Deposits | $ | 7,034  |  |
| Long-term debt | 479  |  |
| Other liabilities | 171  |  |
| Total liabilities | $ | 7,684  |  |

  
Agreement to Sell Philippines Consumer Banking BusinessOn December 23, 2021, Citi entered into an agreement to sell its Philippines consumer banking business, which is part of Asia GCB. The sale, which is subject to regulatory approvals and other closing conditions, is expected to close in the second half of 2022 and result in an after-tax gain upon closing. Income before taxes for the period in which the individually significant component was classified as held-for-sale and for all prior periods was as follows:  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| In millions of dollars | 2021 | 2020 | 2019 |
| Income before taxes | $ | 145  |  | $ | 42  |  | $ | 196  |  |

  
The following assets and liabilities for the Philippines consumer banking business were identified and reclassified to held-for-sale within Other assets and Other liabilities on the Consolidated Balance Sheet at December 31, 2021:  


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| In millions of dollars | December 31, 2021 |
| Assets |  |
| Cash and deposits with banks | $ | 20  |  |
| Loans (net of allowance of $96 million at December 31, 2021) | 1,132  |  |
| Goodwill | 244  |  |
| Other assets, advances to/from subs | 588  |  |
| Other assets | 63  |  |
| Total assets | $ | 2,047  |  |
| Liabilities |  |
| Deposits | $ | 1,373  |  |
| Other liabilities | 76  |  |
| Total liabilities | $ | 1,449  |  |

  
  
  
159
