Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2013

Insurance business [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results Of Discontinued Operations

The following table summarizes the operating results of our discontinued Insurance business for the periods presented:



Year Ended December 31,	2013			2012			2011
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	70		$	167		$	362
Income (loss) from discontinued operations before income tax⁽²⁾	(10		)	(162		)	17

⁽¹⁾

Interest expense, which is included as a component of net interest income, was allocated to discontinued operations in accordance with our existing internal transfer pricing policy. This policy uses match funding based on the expected lives of the assets and liabilities of the business at the time of origination, subject to periodic review, as demonstrated by the expected cash flows and re-pricing characteristics of the underlying assets.


⁽²⁾	For the year ended December 31, 2012 amounts include the lower of amortized cost or fair value adjustment of $119 million as discussed above which was reported as a component of other revenues.

Summary of Assets and Liabilities of Disposal Group Held for Sale

Assets and liabilities of our discontinued Insurance operations, which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet, consisted of the following:



	December 31, 2013		December 31, 2012
	(in millions)
Cash	$	—	$	2
Interest bearing deposits with banks	—		29
Available-for-sale securities	—		1,411
Other assets	—		226
Assets of discontinued operations	$	—	$	1,668
Insurance policy and claim reserves	$	—	$	988
Other liabilities	—		224
Liabilities of discontinued operations	$	—	$	1,212

Commercial Business [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results Of Discontinued Operations

The following table summarizes the operating results of our discontinued Commercial business for the periods presented:



Year Ended December 31,	2013		2012		2011
	(in millions)
Net interest income and other revenues⁽¹⁾	$	22	$	23	$	10
Income from discontinued operations before income tax	14		20		6

⁽¹⁾

Card and Retail Services [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results Of Discontinued Operations

The following table summarizes the operating results of our discontinued Card and Retail Services business for the periods presented:



Year Ended December 31,	2013			2012		2011
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	1		$	3,342	$	3,729
Income (loss) from discontinued operations before income tax⁽²⁾⁽³⁾	(253		)	2,649		1,364

⁽¹⁾


⁽²⁾	For 2012, amounts include the gain on sale to Capital One of $2,178 million. For 2012, amounts also includes a gain of $79 million resulting from the sale of account relationships to HSBC Bank USA which we had previously purchased from HSBC Bank USA in July 2004.

⁽³⁾

For 2013, amount includes an incremental expense of $87 million recorded based on actions taken and to be taken in connection with an industry review of enhancement services products. Additionally for 2013, the amounts also reflect expenses related to activities to complete the separation of the credit card operational infrastructure between us and Capital One. We expect costs associated with the separation of the credit card operational infrastructure to continue into 2014. For 2013 amounts also reflect a legal accrual of $40 million. See Note 22, "Litigation and Regulatory Matters," for further discussion of the legal matter.

Summary of Assets and Liabilities of Disposal Group Held for Sale

Assets and liabilities of our discontinued Card and Retail Services business, which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet, consisted of the following:



	December 31, 2013		December 31, 2012
	(in millions)
Cash	$	23	$	197
Other assets⁽¹⁾	79		84
Assets of discontinued operations	$	102	$	281

Other liabilities⁽²⁾	$	102	$	283
Liabilities of discontinued operations	$	102	$	283


⁽¹⁾	At December 31, 2013 and December 31, 2012, other assets primarily consists of current and deferred taxes.


⁽²⁾	At December 31, 2013 and December 31, 2012, other liabilities primarily consists of certain legal accruals as discussed above.

Taxpayer Finanacial Services [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results Of Discontinued Operations

The following summarizes the operating results of our TFS business for the periods presented:



Year Ended December 31,	2013		2012		2011
	(in millions)
Net interest income and other revenues⁽¹⁾	$	—	$	—	$	2
Income (loss) from discontinued operations before income tax	—		—		(4		)

⁽¹⁾

Interest expense, which is included as a component of net interest income, has been allocated to discontinued operations in accordance with our existing internal transfer pricing policy. This policy uses match funding based on the expected lives of the assets and liabilities of the business at the time of origination, subject to periodic review, as demonstrated by the expected cash flows and re-pricing characteristics of the underlying assets.

Auto Finance [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results Of Discontinued Operations

The following summarizes the operating results of our Auto Finance business for the periods presented:



Year Ended December 31,	2013		2012		2011
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	—	$	14	$	—
Income (loss) from discontinued operations before income tax⁽²⁾	—		14		(3		)

⁽¹⁾


⁽²⁾	For the year ended December 31, 2012, amounts reflect the receipt of a state sales tax refund from the state of California related to accounts that were charged-off prior to the sale of the Auto Finance business.