Assets and Liabilities of Discontinued Operations Were Considered Held for Sale

The following summarizes the assets and liabilities of our discontinued credit card operations at September 30, 2012 and December 31, 2011 which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet.


	September 30, 2012		December 31, 2011
	(in millions)
Loans, net⁽¹⁾	$	-	$	21,185
Other assets		-		269

Assets of discontinued operations	$	-	$	21,454

Deposits in domestic offices – noninterest bearing	$	-	$	35
Other liabilities		-		876

Liabilities of discontinued operations	$	-	$	911

⁽¹⁾	At December 31, 2011, the receivables are carried at the lower of amortized cost or fair value.

Results of Discontinued Operations

The following summarizes the results of operations of our discontinued credit card operations for the periods presented.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	-	$	492	$	541	$	1,598
Income from discontinued operations before income tax		-		218		315		683

⁽¹⁾

Interest expense was allocated to discontinued operations in accordance with our existing internal transfer pricing policy. This policy uses match funding based on the expected lives of the assets and liabilities of the business at the time of origination, subject to periodic review, as demonstrated by the expected cash flows and re-pricing characteristics of the underlying assets.

⁽²⁾	Included in other revenues for the nine months ended September 30, 2012 was a $440 million lower of amortized cost or fair value adjustment. Included in other revenues for the three and nine months ended September 30, 2011 was a $159 million lower of amortized cost or fair value adjustment.

Results of Discontinued Operations

The table below summarizes the operating results of our Banknotes Business for the periods presented.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(in millions)
Net interest income and other revenues	$	-	$	-	$	-	$	19
Income (loss) from discontinued operations before income tax (benefit) expense		-		-		-		(1	)