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These excerpts taken from the C 8-K filed Sep 9, 2005. Retail Banking). International operations include wholly owned
insurance companies in the United Kingdom, Belgium, Australia, Brazil,
Argentina, and Poland; joint ventures in Japan and Hong Kong; and offices in
China. The sale transaction also
includes Citigroup’s Argentine pension business. (The transaction described in this paragraph
is referred to herein as the Sale of the Life Insurance and Annuities
Business).
Results for all of the businesses included in the Sale of the Life Insurance and Annuities Business are reported separately as Discontinued Operations for all period’s presented.
As required by Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (SFAS 144), the results for all of the businesses included in the Sale of the Asset Management Business and the Sale of the Life Insurance and Annuities Business were reported in the June 2005 10-Q’s Unaudited Statements of Income and Cash Flows as discontinued operations for all periods presented. The assets and liabilities of the businesses being sold were included in the Consolidated Balance Sheet as Assets of discontinued operations held for sale and Liabilities of discontinued operations held for sale for the June 30, 2005 period only.
2
Exhibits 99.01 and 99.02 to this Form 8-K present the results for all of the businesses included in the Sale of the Asset Management Business and the Sale of the Life Insurance and Annuities Business separately as discontinued operations in the segment and product income statements and in the Consolidated Statements of Income and Cash Flows for all periods presented. In accordance with SFAS 144, the historical Consolidated Balance Sheet disclosures do not separately classify the assets and liabilities of the businesses being sold as “Assets of discontinued operations held for sale” and “Liabilities of discontinued operations held for sale.”
On August 20, 2002, Citigroup completed the distribution to its stockholders of a majority portion of its remaining ownership interest in Travelers Property Casualty Corp. (TPC). Following the distribution, Citigroup began accounting for TPC as discontinued operations. As such, Exhibits 99.01 and 99.02 also reflect TPC as a discontinued operation for 2000, 2001 and 2002.
Retail Banking, includes loans and leases
made principally to small- and middle-market businesses. Commercial Business loans are placed on a
non-accrual basis when it is determined that the payment of interest or
principal is doubtful of collection or when interest or principal is past due
for 90 days or more, except when the loan is well-secured and in the process of
collection.
7
Retail Banking). International operations include wholly owned
insurance companies in the United Kingdom, Belgium, Australia, Brazil,
Argentina, and Poland; joint ventures in Japan and Hong Kong; and offices in
China. The transaction also includes
Citigroup’s Argentine pension business.
(The transaction described in the preceding three paragraphs is referred
to herein as the Sale of the Life Insurance and Annuities Business).
In connection with the Sale of the Life Insurance and Annuities Business, Citigroup and MetLife have entered into ten-year agreements under which Travelers Life & Annuity products will be made available through certain Citigroup distribution channels, subject to appropriate suitability and other standards. In addition, MetLife products will be added to these distribution channels. For the years ended December 31, 2004, 2003 and 2002, intercompany commission fees paid by Travelers Life & Annuity to Citigroup affiliates for distribution services totaled approximately $430 million, $350 million, and $320 million, respectively.
Also included in the sales agreement between Citigroup and MetLife are provisions related to transitional services that will be provided for a period of 24 to 30 months. These transitional service provisions may be terminated or extended. The costs associated with these provisions are not considered to be significant.The businesses being acquired by MetLife had total assets of $96.4 billion at December 31, 2004.
Results for all of the businesses included in the Sale of the Life Insurance & Annuities Business are recorded separately as discontinued operations for all periods presented. The assets and liabilities of the businesses being sold are included in their respective caption on the Consolidated Balance Sheet.
Summarized financial information for discontinued operations related to the Sale of the Life Insurance and Annuities Business is as follows:
16
These excerpts taken from the C 8-K filed Jun 7, 2005. Retail Banking). International operations include wholly owned
insurance companies in the United Kingdom, Belgium, Australia, Brazil,
Argentina, and Poland; joint ventures in Japan and Hong Kong; and offices in
China. The sale transaction also
includes Citigroup’s Argentine pension business. (The transaction described in this paragraph
is referred to herein as the Sale of the Life Insurance & Annuities
Business).
The Sale of the Life Insurance & Annuities Business is subject to certain domestic and international regulatory approvals, as well as other customary conditions to closing, and is expected to close during the 2005 third quarter. The businesses being sold were the primary vehicles through which Citigroup engaged in the Life Insurance and Annuities business.
As required by Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (SFAS 144), the results for all of the businesses included in the Sale of the Life Insurance & Annuities Business were reported in the March 2005 10-Q’s Unaudited Statements of Income and Cash Flows separately as discontinued operations for all periods presented. The assets and liabilities of the businesses being sold were included in the Consolidated Balance Sheet as Assets of discontinued operations held for sale and Liabilities of discontinued operations held for sale for the March 31, 2005 period only.
Exhibits 99.01 and 99.02 to this Form 8-K present the results for all of the businesses included in the Sale of the Life Insurance & Annuities Business separately as discontinued operations in the segment and product income statements and in the Consolidated Statements of Income and Cash Flows for all periods presented. In accordance with SFAS 144, Consolidated Balance Sheet disclosures do not separately classify the assets and liabilities of the businesses being sold as “Assets of discontinued operations held for sale” and “Liabilities of discontinued operations held for sale.”
On August 20, 2002, Citigroup completed the distribution to its stockholders of a majority portion of its remaining ownership interest in Travelers Property Casualty Corp. (TPC). Following the distribution, Citigroup began accounting for TPC as discontinued operations. As such, Exhibits 99.01 and 99.02 also reflect TPC as a discontinued operation for 2000, 2001 and 2002.
2
Retail Banking,
includes loans and leases made principally to small- and middle-market
businesses. Commercial Business loans
are placed on a non-accrual basis when it is determined that the payment of
interest or principal is doubtful of collection or when interest or principal
is past due for 90 days or more, except when the loan is well-secured and in
the process of collection.
7
Retail Banking).
International operations include wholly owned insurance companies in the
United Kingdom, Belgium, Australia, Brazil, Argentina, and Poland; joint
ventures in Japan and Hong Kong; and offices in China. The sale transaction also includes Citigroup’s
Argentine pension business. (The
transaction described in the preceding three paragraphs is referred to herein
as the Sale of the Life Insurance & Annuities Business).
In connection with the transaction, Citigroup and MetLife have entered into ten-year agreements under which Travelers Life & Annuity products will be made available through certain Citigroup distribution channels, subject to appropriate suitability and other standards. In addition, MetLife products will be added to these distribution channels. For the years ended 2004, 2003, and 2002, intercompany commission fees paid by Travelers Life & Annuity to Citigroup and affiliates for distribution services totaled approximately $430 million, $350 million, and $320 million, respectively.
Also included in the sales agreement between Citigroup and MetLife are provisions related to transitional services that will be provided for a period of 24 to 30 months. These transitional service agreements may be terminated or extended. The costs associated with these agreements are not considered to be significant.
The transaction is subject to certain domestic and international regulatory approvals, as well as other customary conditions to closing, and is expected to close during the 2005 third quarter.
The businesses being acquired by MetLife had total assets of $96 billion at December 31, 2004.
Results for all of the businesses included in the Sale of the Life Insurance & Annuities Business are recorded separately as discontinued operations for all periods presented. The assets and liabilities of the businesses being sold are included in their respective caption on the Consolidated Balance Sheet.
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