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Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
Summary of Related Party Transactions
The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions:
At December 31,
2017
 
2016
 
(in millions)
Assets:
 
 
 
Cash and due from banks
$
191

 
$
364

Interest bearing deposits with banks
473

 
980

Securities purchased under agreements to resell(1)
1,115

 
949

Trading assets
63

 
74

Loans
6,750

 
3,274

Other(2)
134

 
291

Total assets
$
8,726

 
$
5,932

Liabilities:
 
 
 
Deposits
$
10,521

 
$
23,999

Trading liabilities
737

 
510

Short-term borrowings
1,595

 
2,148

Long-term debt
4,841

 
4,834

Other(2)
387

 
247

Total liabilities
$
18,081

 
$
31,738

 
(1) 
Reflects purchases of securities which other HSBC affiliates have agreed to repurchase.
(2) 
Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables.
Year Ended December 31,

2017
 
2016
 
2015
 
(in millions)
Income/(Expense):
 
 
 
 
 
Interest income
$
65

 
$
122

 
$
117

Interest expense
(267
)
 
(166
)
 
(63
)
Net interest income (expense)
(202
)
 
(44
)
 
54

Trading revenue (expense)
(615
)
 
(1,297
)
 
402

Servicing and other fees from HSBC affiliates:
 
 
 
 
 
HSBC Bank plc
154

 
156

 
145

HSBC Finance Corporation
44

 
40

 
53

HSBC Markets (USA) Inc. ("HMUS")
71

 
34

 
25

Other HSBC affiliates
79

 
59

 
53

Total servicing and other fees from HSBC affiliates
348

 
289

 
276

Gain (loss) on instruments designated at fair value and related derivatives
1,108

 
467

 
(116
)
Support services from HSBC affiliates:
 
 
 
 
 
HMUS
(121
)
 
(214
)
 
(283
)
HSBC Technology & Services (USA) ("HTSU")
(1,165
)
 
(1,027
)
 
(1,030
)
Other HSBC affiliates
(263
)
 
(254
)
 
(243
)
Total support services from HSBC affiliates
(1,549
)
 
(1,495
)
 
(1,556
)
Occupancy expense, net
54

 
60

 
58

Stock based compensation expense(1)
(31
)
 
(39
)
 
(49
)

 
(1) 
Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income (loss). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 20, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At December 31, 2017 and 2016, we have the following loan balances outstanding with HSBC affiliates:
At December 31,
2017
 
2016
 
(in millions)
HSBC Finance Corporation
$
—

 
$
2,501

HMUS and subsidiaries
6,690

 
563

HSBC Mexico S.A.
—

 
195

Other short-term affiliate lending
60

 
15

Total loans
$
6,750

 
$
3,274
Schedule of Impact of Reclassifications on Consolidated Statement of Income
The following table reflects the impact of this reclassification on our consolidated statement of income (loss) for the periods below:
 
Year Ended
December 31, 2016
 
Year Ended
December 31, 2015
 
As Previously Reported
 
After Reclassification
 
As Previously Reported
 
After Reclassification
 
(in millions)
 
(in millions)
Income/(Expense):
 
 
 
 
 
 
 
Servicing and other fees from HSBC affiliates:
 
 
 
 
 
 
 
HSBC Bank plc
$
95

 
$
156

 
$
82

 
$
145

HSBC Finance Corporation
40

 
40

 
53

 
53

HMUS
23

 
34

 
25

 
25

Other HSBC affiliates
59

 
59

 
53

 
53

Total servicing and other fees from HSBC affiliates
217

 
289

 
213

 
276

 
 
 
 
 
 
 
 
Total other revenues
1,332

 
1,404

 
1,672

 
1,735

 
 
 
 
 
 
 
 
Support services from HSBC affiliates:
 
 
 
 
 
 
 
HMUS
(176
)
 
(214
)
 
(256
)
 
(283
)
HTSU
(994
)
 
(1,027
)
 
(999
)
 
(1,030
)
Other HSBC affiliates
(193
)
 
(254
)
 
(180
)
 
(243
)
Total support services from HSBC affiliates
(1,363
)
 
(1,495
)
 
(1,435
)
 
(1,556
)
 
 
 
 
 
 
 
 
Occupancy expense, net
(231
)
 
(171
)
 
(230
)
 
(172
)
 
 
 
 
 
 
 
 
Total operating expenses
(3,226
)
 
(3,298
)
 
(3,221
)
 
(3,284
)