Organization

As of December 31, 2016, HSBC Finance Corporation and its subsidiaries are wholly owned subsidiaries of HSBC North America Holdings Inc. ("HSBC North America"), which is an indirect, wholly owned subsidiary of HSBC Holdings plc ("HSBC" and, together with its subsidiaries, "HSBC Group"). Prior to November 15, 2016, HSBC Finance Corporation was owned by HSBC Investments (North America) Inc., a wholly owned subsidiary of HSBC North America, which was dissolved. HSBC Finance Corporation and its subsidiaries may also be referred to in these notes to the consolidated financial statements as "we", "us" or "our". Historically, HSBC Finance Corporation provided middle-market consumers with several types of loan products in the United States. While we no longer originate any receivable products, our lending products historically included real estate secured, auto finance, personal non-credit card, MasterCard, Visa, American Express and Discover credit card receivables as well as private label receivables in the United States. We also historically offered tax refund anticipation loans and related products in the United States. Additionally, we also previously offered credit and specialty insurance in the United States and Canada.

We have one segment, Consumer, which consists of the run-off real estate secured receivable portfolio of our Consumer Lending and Mortgage Services businesses. Prior to the fourth quarter of 2016, we managed our business in accordance with HSBC Group accounting and reporting policies ("Group Reporting Basis") which applied International Financial Reporting Standards as issued by the International Accounting Standards Board and endorsed by the European Union and we reported segment results under the Group Reporting Basis. As a result of classifying all remaining receivables as held for sale in the third quarter of 2016, our primary focus has shifted to the successful completion of our receivable sales program. During the fourth quarter of 2016, we revised the scope and content of our internal management reporting to focus on accounting principles generally accepted in the United States ("U.S. GAAP") based financial results which more closely reflects the financial performance management is most focused on as receivable sales progress. This U.S. GAAP financial information is used to monitor and review operating results, evaluate trends and make decisions about allocating resources such as employees. As a result of the shift in focus to U.S. GAAP based management reporting, there are no longer any reporting differences between our consolidated results and our segment results. As we only have one segment, beginning in the fourth quarter of 2016 and in future periods, we no longer report segment results separately for any periods presented.