Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2012

Insurance business [Member]

Operating Results of Discontinued Business

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012			2011
	(in millions)
Net interest income and other revenues⁽¹⁾	$	105	$	94	$	169		$	276
Income (loss) from discontinued operations before income tax		28		5		(72	)		21

⁽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.

Summary of Assets and Liabilities of Disposal Group Held for Sale

The following summarizes the assets and liabilities which are part of the disposal group held for sale related to our Insurance operations at September 30, 2012 and December 31, 2011 which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet.


	September 30, 2012		December 31, 2011
	(in millions)
Cash	$	2	$	5
Interest bearing deposit with bank		32		3
Available-for-sale securities		1,474		1,851
Other assets		247		143

Assets of discontinued operations	$	1,755	$	2,002

Insurance policy and claim reserves	$	996	$	1,049
Other liabilities		175		43

Liabilities of discontinued operations	$	1,171	$	1,092

Commercial Business [Member]

Operating Results of Discontinued Business

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in millions)
Net interest income and other revenues⁽¹⁾	$	1	$	2	$	23	$	5
Income from discontinued operations before income tax		-		1		20		3

⁽¹⁾

Card and Retail Services [Member]

Operating Results of Discontinued Business

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


	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012⁽²⁾		2011
	(in millions)
Net interest income and other revenues⁽¹⁾	$	(14	)	$	959	$	3,342	$	2,785
Income (loss) from discontinued operations before income tax		(64	)		373		2,737		870

⁽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 in all applicable periods. 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⁾	Includes the gain on sale to Capital One of $2.2 billion in the nine months ended September 30, 2012.

Summary of Assets and Liabilities of Disposal Group Held for Sale

The following summarizes the assets and liabilities of our discontinued Card and Retail Services business at September 30, 2012 and December 31, 2011 which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet.


	September 30, 2012			December 31, 2011
	(in millions)
Cash	$	172		$	96
Receivables		-			9,001
Intangible assets		-			514
Properties and equipment, net		-			95
Other assets		84			1,102

Assets of discontinued operations	$	256		$	10,808

Long-term debt	$	-		$	211
Other liabilities		349	⁽¹⁾		1,257

Liabilities of discontinued operations	$	349		$	1,468