Citigroup Inc.

CitiCapitalOn July 31, 2008, Citigroup sold substantially all of CitiCapital, theequipment finance unit in North America. The total proceeds from thetransaction were approximately $12.5 billion and resulted in an after-taxloss to Citigroup of $305 million. This loss is included in Income fromdiscontinued operations on the Company’s Consolidated Statementof Income for the second quarter of 2008. The assets and liabilities forCitiCapital totaled approximately $12.9 billion and $0.5 billion, respectively,at June 30, 2008.This transaction encompassed seven CitiCapital equipment financebusiness lines, including Healthcare Finance, Private Label EquipmentFinance, Material Handling Finance, Franchise Finance, ConstructionEquipment Finance, Bankers Leasing, and CitiCapital Canada. CitiCapital’sTax Exempt Finance business was not part of the transaction and wasretained by Citigroup.CitiCapital had approximately 1,400 employees and 160,000 customersthroughout North America.Results for all of the CitiCapital businesses sold, as well as the net lossrecognized in 2008 from this sale, are reported as Discontinued operationsfor all periods presented.Summarized financial information for Discontinued operations,including cash flows, related to the sale of CitiCapital is as follows:In millions of dollars 2010 2009 2008Total revenues, net of interestexpense (1) $ 6 $46 $ 24Income (loss) from discontinued operations $ (3) $ (8) $ 40Gain (loss) on sale — 17 (506)Provision (benefit) for income taxes (1) 4 (202)Income (loss) from discontinuedoperations, net of taxes $ (2) $ 5 $(264)In millions of dollars 2010 2009 2008Cash flows from operating activities $— $— $(287)Cash flows from investing activities — — 349Cash flows from financing activities — — (61)Net cash provided bydiscontinued operations $— $— $ 1Combined Results for Discontinued OperationsThe following is summarized financial information for the SLCbusiness, Nikko Cordial business, German retail banking operations andCitiCapital business.In addition to the businesses noted above, the following affectedDiscontinued operations. During 2010, certain tax reserves were released,in relation to the sale of Citigroup’s Life Insurance and Annuity business in2005, due to favorable resolutions with the IRS. This resulted in an aftertaxgain of $59 million in 2010. During 2009, contingent considerationpayments of $29 million pretax ($19 million after tax) were received relatedto the sale of Citigroup’s Asset Management business, which was sold inDecember 2005. During 2008, in relation to the sale of its Life Insurance andAnnuity business in 2005, the Company fulfilled its previously agreed uponobligations with regard to its remaining 10% economic interest in the longtermcare business that it had sold to the predecessor of Genworth Financialin 2000. The reimbursement resulted in a pretax loss of $50 million($33 million after tax) at December 31, 2008. The Asset Management and theLife Insurance and Annuity transactions are included in these balances.In millions of dollars 2010 2009 2008Total revenues, net of interestexpense (1) $ (410) $ 779 $ 7,810Income (loss) from discontinued operations $ 72 $ (653) $ 784Gain (loss) on sale (702) 102 3,139Benefit for income taxes (562) (106) (79)Income (loss) from discontinuedoperations, net of taxes $ (68) $ (445) $ 4,002In millions of dollars 2010 2009 2008Cash flows from operating activities $ 4,974 $(1,825) $ (5,681)Cash flows from investing activities 1,726 1,854 19,664Cash flows from financing activities (6,486) (6) (14,287)Net cash provided by (used in)discontinued operations $ 214 $ 23 $ (304)(1) Total revenues include gain or loss on sale, if applicable.(1) Total revenues include gain or loss on sale, if applicable.181