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Financial Statements of HSBC USA Inc. (Parent) (Tables)
 12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet
Condensed parent company financial statements follow:
Balance Sheet
At December 31,
2016
 
2015
 
(in millions)
Assets:
 
 
 
Securities available-for-sale
$
—

 
$
251

Securities held-to-maturity (fair value of $3 million and $4 million at December 31, 2016 and 2015, respectively)
3

 
4

Receivables and balances due from subsidiaries
17,356

 
16,836

Receivables from other HSBC affiliates
3,863

 
4,733

Investment in subsidiaries:
 
 
 
Banking
23,626

 
23,828

Other
3

 
22

Other assets
267

 
189

Total assets
$
45,118

 
$
45,863

Liabilities:
 
 
 
Interest, taxes and other liabilities
$
106

 
$
155

Payables due to subsidiaries
1

 
2

Payables due to other HSBC affiliates
27

 
15

Short-term borrowings
1,251

 
1,978

Long-term debt(1)
22,542

 
21,358

Long-term debt due to other HSBC affiliates(1)
836

 
1,830

Total liabilities
24,763

 
25,338

Total equity
20,355

 
20,525

Total liabilities and equity
$
45,118

 
$
45,863

 
(1) 
Contractual scheduled maturities for the debt over the next five years are as follows: 2017 –$3.5 billion; 2018 – $6.5 billion; 2019 – $3.5 billion; 2020 – $5.1 billion; 2021 – $1.4 billion; and thereafter – $3.4 billion.
Schedule of Condensed Income Statement
Statement of Income
Year Ended December 31,
2016
 
2015
 
2014
 
(in millions)
Income:
 
 
 
 
 
Dividends from banking subsidiaries
$
136

 
$
104

 
$
—

Dividends from other subsidiaries
17

 
1

 
1

Interest from subsidiaries
268

 
97

 
66

Interest from other HSBC affiliates
115

 
121

 
117

Other interest income
2

 
14

 
22

Other securities gains, net
7

 
1

 
—

Other income (loss) from subsidiaries
1

 
(2
)
 
(1
)
Other income (loss) from other HSBC Affiliates
418

 
(79
)
 
395

Other income (loss)
(321
)
 
121

 
(347
)
Total income
643

 
378

 
253

Expenses:
 
 
 
 
 
Interest to subsidiaries
—

 
23

 
45

Interest to other HSBC Affiliates
43

 
28

 
49

Other interest expense
475

 
375

 
266

Provision for credit losses
—

 
—

 
(3
)
Other expenses with subsidiaries
27

 
—

 
23

Other expenses
3

 
6

 
182

Total expenses
548

 
432

 
562

Income (loss) before taxes and equity in undistributed income of subsidiaries
95

 
(54
)
 
(309
)
Income tax benefit
27

 
76

 
107

Income (loss) before equity in undistributed income of subsidiaries
122

 
22

 
(202
)
Equity in undistributed income of subsidiaries
7

 
308

 
556

Net income
$
129

 
$
330

 
$
354
Schedule of Comprehensive Income (Loss)
Statement of Comprehensive Income (Loss)
Year Ended December 31,
2016
 
2015
 
2014
 
(in millions)
Net income
$
129

 
$
330

 
$
354

Net change in unrealized gains (losses), net of tax:
 
 
 
 
 
Investment securities
(227
)
 
(392
)
 
176

Other-than-temporarily impaired debt securities held-to-maturity
—

 
—

 
60

Derivatives designated as cash flow hedges
13

 
(14
)
 
(73
)
Pension and post-retirement benefit plans
3

 
—

 
(5
)
Total other comprehensive income (loss)
(211
)
 
(406
)
 
158

Comprehensive income (loss)
$
(82
)
 
$
(76
)
 
$
512
Schedule of Condensed Cash Flow Statement
Statement of Cash Flows
Year Ended December 31,
2016
 
2015
 
2014
 
(in millions)
Cash flows from operating activities:
 
 
 
 
 
Net income
$
129

 
$
330

 
$
354

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
14

 
25

 
4

Net change in other assets and liabilities
274

 
517

 
(460
)
Undistributed gain of subsidiaries
(7
)
 
(308
)
 
(556
)
Net change in trading assets and liabilities
—

 
—

 
624

Other, net
(4
)
 
(31
)
 
(36
)
Cash provided by (used in) operating activities
406

 
533

 
(70
)
Cash flows from investing activities:
 
 
 
 
 
Purchases of securities
—

 
(56
)
 
—

Sales and maturities of securities
254

 
298

 
21

Net change in loans
—

 
—

 
26

Net change in investments in and receivables due from subsidiaries
(496
)
 
(4,489
)
 
(6,003
)
Net change in receivables from other HSBC affiliates
887

 
835

 
(764
)
Other, net
(27
)
 
(38
)
 
—

Cash provided by (used in) investing activities
618

 
(3,450
)
 
(6,720
)
Cash flows from financing activities:
 
 
 
 
 
Net change in payables to other HSBC affiliates
19

 
—

 
—

Net change in short-term borrowings
(727
)
 
(2,794
)
 
1,393

Issuance of long-term debt
3,587

 
11,946

 
8,013

Repayment of long-term debt
(3,815
)
 
(9,870
)
 
(2,554
)
Preferred stock issuance
1,265

 
—

 
—

Preferred stock redemption
(1,265
)
 
(300
)
 
—

Capital contribution from parent
—

 
4,000

 
—

Other increases (decreases) in capital surplus
(21
)
 
(1
)
 
4

Dividends paid
(67
)
 
(65
)
 
(73
)
Cash provided by (used in) financing activities
(1,024
)
 
2,916

 
6,783

Net change in cash and due from banks
—

 
(1
)
 
(7
)
Cash and due from banks at beginning of year
—

 
1

 
8

Cash and due from banks at end of year
$
—

 
$
—

 
$
1

Cash paid for:
 
 
 
 
 
Interest
$
517

 
$
406

 
$
363