Strategic Initiatives

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

As discussed in our 2022 Form 10-K, we completed our strategic plan to restructure our operations ("Restructuring Plan") over the three-year period of 2020-2022 and will no longer incur costs related to this plan. During the three and six months ended June 30, 2022, we recorded $41 million and $72 million, respectively, of pre-tax charges in connection with our Restructuring Plan.

The following table summarizes the changes in the liability associated with our Restructuring Plan during the three and six months ended June 30, 2022:


	Severance and Other Employee Costs(1)		Lease Termination and Associated Costs(2)		Other(3)		Total
	(in millions)






Three Months Ended June 30, 2022
Restructuring liability at beginning of period	$	2	$	38	$	—	$	40
Restructuring costs accrued during the period	4		—		11		15
Restructuring costs paid during the period	(4)		(4)		(11)		(19)
Restructuring liability at end of period	$	2	$	34	$	—	$	36







Six Months Ended June 30, 2022
Restructuring liability at beginning of period	$	10	$	46	$	—	$	56
Restructuring costs accrued during the period	4		—		18		22
Restructuring costs paid during the period	(12)		(12)		(18)		(42)
Restructuring liability at end of period(4)	$	2	$	34	$	—	$	36

(1)Severance and other employee costs are included in salaries and employee benefits in the consolidated statement of income. The majority of these costs were reported in the Wealth and Personal Banking business segment. Not included in these costs are allocated severance costs from HSBC Technology & Services (USA) Inc. ("HTSU") discussed further below.

(2)Primarily includes real estate taxes, service charges and decommissioning costs. Lease termination and associated costs are included in occupancy expense, net in the consolidated statement of income and were reported in the Wealth and Personal Banking and the Corporate Center business segments.

(3)Primarily includes professional fees and other staff costs, which are included in other expenses in the consolidated statement of income. The majority of these costs were reported in the Wealth and Personal Banking business segment.

(4)At June 30, 2023, our remaining liability associated with our Restructuring Plan totaled $23 million.

In addition to the restructuring costs reflected in the rollforward table above, during the three and six months ended June 30, 2022, we reversed $4 million and $3 million, respectively, of lease right-of-use ("ROU") asset and leasehold improvement asset impairment charges associated with certain office space that we determined we would exit. Lease impairment charges are reflected in occupancy expense, net in the consolidated statement of income and were reported in the Corporate Center business segment.

Our Restructuring Plan also resulted in costs being allocated to us from HTSU, primarily support service project costs and severance costs, which are reflected in support services from HSBC affiliates in the consolidated statement of income. During the three and six months ended June 30, 2022, we recorded $30 million and $53 million, respectively, of allocated costs from HTSU related to restructuring activities. These costs were reported in the Corporate Center business segment.

HSBC Group Restructuring Separate from the charges related to our Restructuring Plan as detailed above, during the three and six months ended June 30, 2022, we also recorded $25 million and $42 million, respectively, of allocated costs from other HSBC affiliates related to the HSBC Group's restructuring activities, primarily support service project costs and severance costs. These costs are reflected in support services from HSBC affiliates in the consolidated statement of income and were reported in the Corporate Center business segment.