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



	June 30, 2018		December 31, 2017
	(in millions)
Assets:
Cash and due from banks	$	351	$	191
Interest bearing deposits with banks	182		473
Securities purchased under agreements to resell⁽¹⁾	330		1,115
Trading assets	111		63
Loans	1,895		6,750
Other⁽²⁾	212		134
Total assets	$	3,081	$	8,726
Liabilities:
Deposits	$	11,502	$	10,521
Trading liabilities	174		737
Short-term borrowings	838		1,595
Long-term debt	4,843		4,841
Other⁽²⁾	282		387
Total liabilities	$	17,639	$	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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in millions)
Income/(Expense):
Interest income	$	24		$	11		$	46		$	35
Interest expense	(90		)	(70		)	(168		)	(136		)
Net interest expense	(66		)	(59		)	(122		)	(101		)
Trading revenue (expense)	(627		)	(891		)	531			(806		)
Servicing and other fees from HSBC affiliates:⁽¹⁾
HSBC Bank plc	43			34			84			75
HSBC Markets (USA) Inc. ("HMUS")	30			18			61			35
HSBC Finance Corporation ("HSBC Finance")	1			3			2			37
Other HSBC affiliates	13			26			39			48
Total servicing and other fees from HSBC affiliates	87			81			186			195
Gain (loss) on instruments designated at fair value and related derivatives	135			164			(303		)	524
Support services from HSBC affiliates:⁽¹⁾
HSBC Technology & Services (USA) ("HTSU")	(310		)	(302		)	(608		)	(595		)
HMUS	(25		)	(31		)	(56		)	(60		)
Other HSBC affiliates	(70		)	(66		)	(152		)	(128		)
Total support services from HSBC affiliates	(405		)	(399		)	(816		)	(783		)
Rental income from HSBC affiliates, net⁽¹⁾⁽²⁾	14			15			26			28
Stock based compensation expense⁽³⁾	(10		)	(11		)	(15		)	(18		)

⁽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 affiliate 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 by $29 million and $61 million, respectively, increased support services from HSBC affiliates by $44 million and $89 million, respectively, and increased rental income from HSBC affiliates, net by $15 million and $28 million, respectively, during the three and six months ended June 30, 2017. Reported net income for the three and six months ended June 30, 2017 remained unaffected.


⁽²⁾	We receive rental revenue from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income.

⁽³⁾

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. 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."