The following tables and discussions below present the more significant related party balances and the income (expense) generated by related party transactions:



	3/31/2018		December 31, 2017
	(in millions)
Assets:
Cash and due from banks	$	279	$	191
Interest bearing deposits with banks	709		473
Securities purchased under agreements to resell⁽¹⁾	181		1,115
Trading assets	103		63
Loans	1,920		6,750
Other⁽²⁾	221		134
Total assets	$	3,413	$	8,726
Liabilities:
Deposits	$	14,001	$	10,521
Trading liabilities	—		737
Short-term borrowings	1,296		1,595
Long-term debt	4,842		4,841
Other⁽²⁾	465		387
Total liabilities	$	20,604	$	18,081


⁽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.



Three Months Ended March 31,	2018			2017
	(in millions)
Income/(Expense):
Interest income	$	22		$	24
Interest expense	(78		)	(66		)
Net interest expense	(56		)	(42		)
Trading revenue	1,158			85
Servicing and other fees from HSBC affiliates:⁽¹⁾
HSBC Bank plc	41			41
HSBC Markets (USA) Inc. ("HMUS")	31			17
HSBC Finance	1			34
Other HSBC affiliates	26			22
Total servicing and other fees from HSBC affiliates	99			114
Gain (loss) on instruments designated at fair value and related derivatives	(438		)	360
Support services from HSBC affiliates:⁽¹⁾
HSBC Technology & Services (USA) ("HTSU")	(298		)	(293		)
HMUS	(31		)	(29		)
Other HSBC affiliates	(82		)	(62		)
Total support services from HSBC affiliates	(411		)	(384		)
Occupancy expense, net⁽¹⁾	12			13
Stock based compensation expense⁽²⁾	(5		)	(7		)

⁽¹⁾

During the fourth quarter of 2017, we changed our presentation for certain cost reimbursements that were previously netted as an offset to affiliate expense and began presenting these reimbursements gross in affiliate income for consistency in presentation across similar transactions. Separately, we also concluded that rental revenue we receive from our affiliates for rent on certain office space would be better presented as a reduction to occupancy expense as opposed to a reduction to affiliates expense. As a result, we have reclassified prior period amounts in order to conform to the current year presentation, which increased servicing and other fees from HSBC affiliates $32 million, increased support services from HSBC affiliates $45 million and decreased occupancy expense, net $13 million during the three months ended March 31, 2017. Reported net income (loss) for the three months ended March 31, 2017 remained unaffected.

⁽²⁾

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 12, "Pension and Other Postretirement Benefits."