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Business Segments
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Business Segments
Business Segments
 
We have one reportable segment: Consumer. Our Consumer segment consists of our run-off Consumer Lending and Mortgage Services businesses. While these businesses are operating in run-off, they do not qualify to be reported as discontinued operations. There have been no changes in measurement or composition of our segment reporting as compared with the presentation in our 2015 Form 10-K.
Our segment results are presented in accordance with the Group Reporting Basis which apply IFRSs as issued by the IASB and endorsed by the EU, and, as a result, our segment results are prepared and presented using financial information prepared on the Group Reporting Basis (a non-U.S. GAAP financial measure) as operating results are monitored and reviewed, trends are evaluated and decisions about allocating resources such as employees are primarily made on this basis. However, we continue to monitor liquidity, capital adequacy and report to regulatory agencies on a U.S. GAAP basis.
We are currently in the process of re-evaluating the financial information used to manage our businesses, including the scope and content of the U.S. GAAP financial data being reported to our Management and our Board. To the extent we make changes to this reporting in 2016, we will evaluate any impact such changes may have on our segment reporting.
A summary of differences between U.S. GAAP and the Group Reporting Basis as they impact our results are presented in Note 18, "Business Segments," in our 2015 Form 10-K. There have been no significant changes since December 31, 2015 in the differences between U.S. GAAP and the Group Reporting Basis impacting our results.
The following table reconciles our segment results on the Group Reporting Basis to the U.S. GAAP consolidated totals:
 
Group Reporting Basis
Consumer Segment
Totals
 
Group Reporting Basis
Adjustments(1)
 
Group
 Reporting Basis
Reclassifications(2)
 
U.S. GAAP
Consolidated
Totals
 
(in millions)
Three Months Ended March 31, 2016:
 
 
 
 
 
 
 
Net interest income
$
220

 
$
(25
)
 
$
(13
)
 
$
182

Other operating income (Total other revenues)
(91
)
 
(55
)
 
13

 
(133
)
Total operating income (loss)
129

 
(80
)
 
—

 
49

Loan impairment charges (Provision for credit losses)
95

 
(58
)
 
—

 
37

Net interest income and other operating income less loan impairment charges
34

 
(22
)
 
—

 
12

Operating expenses
135

 
3

 
—

 
138

Profit (loss) before tax
$
(101
)
 
$
(25
)
 
$
—

 
$
(126
)
Balances at end of period:
 
 
 
 
 
 
 
Customer loans (Receivables)
$
12,981

 
$
(4,386
)
 
$
(22
)
 
$
8,573

Assets
23,063

 
(1,399
)
 
—

 
21,664

 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
Net interest income
$
281

 
$
(40
)
 
$
(57
)
 
$
184

Other operating income (Total other revenues)
(78
)
 
(21
)
 
57

 
(42
)
Total operating income (loss)
203

 
(61
)
 
—

 
142

Loan impairment charges (Provision for credit losses)
21

 
6

 
—

 
27

Net interest income and other operating income less loan impairment charges
182

 
(67
)
 
—

 
115

Operating expenses
148

 
—

 
—

 
148

Profit (loss) before tax
$
34

 
$
(67
)
 
$
—

 
$
(33
)
Balances at end of period:
 
 
 
 
 
 
 
Customer loans (Receivables)
$
22,492

 
$
(735
)
 
$
(28
)
 
$
21,729

Assets
32,428

 
(1,510
)
 
—

 
30,918


 

(1) 
Group Reporting Basis Adjustments consist of accounting differences between U.S. GAAP and the Group Reporting Basis which have been described in Note 18, "Business Segments," in the 2015 Form 10-K.
(2) 
Represents differences in balance sheet and income statement presentation between U.S. GAAP and the Group Reporting Basis.
Included in loan impairment charges for the three months ended March 31, 2016 is a loan impairment adjustment of approximately $100 million representing the cumulative impact of the correction of an error under the Group Reporting Basis of accounting and reporting policies (a non-U.S. GAAP financial measure). During the first quarter of 2016, management identified a calculation error in the loan impairment allowance model for the segment collectively evaluated for impairment. The cumulative impact of this item was an understatement of the loan impairment allowance of approximately $100 million at March 31, 2016. Loan impairment allowances under U.S. GAAP were unaffected.