Discontinued Operations

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

2012 Discontinued Operations:

Commercial In 2012, we began reporting our Commercial business in discontinued operations as there were no longer any outstanding receivable balances or any remaining significant cash flows generated from this business. At March 31, 2016 and December 31, 2015, assets of our Commercial business totaled $4 million and $5 million, respectively. There were no liabilities in our Commercial business at either March 31, 2016 or December 31, 2015. The following table summarizes the operating results of our discontinued Commercial business for the periods presented:

Three Months Ended March 31,	2016		2015
	(in millions)
Net interest income and other revenues	$	4	$	7
Income from discontinued operations before income tax	2		4

2011 Discontinued Operations:

Card and Retail Services In 2012, HSBC, through its wholly-owned subsidiaries HSBC Finance Corporation, HSBC USA Inc. ("HSBC USA") and other wholly-owned affiliates, sold its Card and Retail Services business to Capital One Financial Corporation (“Capital One”). In addition to receivables, the sale included real estate and certain other assets and liabilities which were sold at book value or, in the case of real estate, appraised value.

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

Three Months Ended March 31,	2016			2015
	(in millions)
Net interest income and other revenues	$	—		$	—
Loss from discontinued operations before income tax(1)	(9		)	(4		)

⁽¹⁾  The three months ended March 31, 2016 includes incremental expenses of $7 million for legal matters. For the three months ended March 31, 2015, the amount includes expenses related to activities to complete the separation of the credit card operational infrastructure between us and Capital One.

At March 31, 2016 and December 31, 2015, assets of our discontinued Card and Retail Services business totaled $12 million and $8 million, respectively. Liabilities of our Card and Retail Services business totaled $113 million and $102 million at March 31, 2016 and December 31, 2015, respectively, which primarily consists of certain legal accruals.

See Note 14, "Litigation and Regulatory Matters," for discussion regarding a consent order issued by the Office of the Comptroller of the Currency ("OCC") on April 13, 2016 related to customers who purchased a certain credit monitoring product which was previously marketed and administered by our discontinued Card and Retail Services business.