HSBC Finance Corp
CIK:0000354964|SEC Filings
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions |
9 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
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| Cash flows from operating activities | ||||||||||
| Net income (loss) | $ 306 | $ (612) | ||||||||
| Income (loss) from discontinued operations | 5 | (6) | ||||||||
| Income (loss) from continuing operations | 301 | (606) | ||||||||
| Adjustments to reconcile income (loss) from continuing operations to net cash used in operating activities: | ||||||||||
| Provision for credit losses | 0 | 621 | [1] | |||||||
| Lower of amortized cost or fair value adjustment on receivables held for sale | (155) | 119 | ||||||||
| Gain on sale of real estate secured receivables | (754) | (418) | ||||||||
| Loss on extinguishment of debt | 287 | 0 | ||||||||
| Provision for securities litigation liability | 0 | 575 | ||||||||
| Mark-to-market on debt designated at fair value and related derivatives | (7) | 6 | ||||||||
| Foreign exchange and derivative movements on long-term debt and net change in non-fair value option related derivative assets and liabilities | 51 | 26 | ||||||||
| Net change in other assets | 460 | (264) | ||||||||
| Net change in other liabilities | (271) | (1,918) | ||||||||
| Other, net | (6) | 11 | ||||||||
| Cash used in operating activities – continuing operations | (94) | (1,848) | ||||||||
| Cash used in operating activities – discontinued operations | (23) | (27) | ||||||||
| Cash used in operating activities | (117) | (1,875) | ||||||||
| Cash flows from investing activities | ||||||||||
| Net change in securities purchased under agreements to resell | (1,648) | 1,900 | ||||||||
| Net change in interest bearing deposits with banks | 1,500 | 0 | ||||||||
| Receivables: | ||||||||||
| Net collections | 248 | 1,322 | ||||||||
| Proceeds from sales of receivables | 6,059 | 5,382 | ||||||||
| Proceeds from sales of real estate owned | 39 | 99 | ||||||||
| Sales of properties and equipment, net | 0 | 2 | ||||||||
| Cash provided by investing activities – continuing operations | 6,198 | 8,705 | ||||||||
| Cash provided by investing activities – discontinued operations | 0 | 0 | ||||||||
| Cash provided by investing activities | 6,198 | 8,705 | ||||||||
| Debt: | ||||||||||
| Net change in due to affiliates | (3,234) | (1,102) | ||||||||
| Long-term debt retired | (2,584) | (5,074) | ||||||||
| Debt extinguishment fees | (303) | 0 | ||||||||
| Redemption of preferred stock | 0 | (575) | ||||||||
| Dividends | (64) | (84) | ||||||||
| Cash used in financing activities – continuing operations | (6,185) | (6,835) | ||||||||
| Cash used in financing activities – discontinued operations | 0 | 0 | ||||||||
| Cash used in financing activities | (6,185) | (6,835) | ||||||||
| Net change in cash | (104) | (5) | ||||||||
| Cash at beginning of period | [2] | 135 | 136 | |||||||
| Cash at end of period | [3] | 31 | 131 | |||||||
| Supplemental Noncash Investing and Capital Activities: | ||||||||||
| Fair value of properties added to real estate owned | 15 | 55 | ||||||||
| Transfer of receivables to held for sale | $ 0 | $ 7,574 | ||||||||
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CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
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|---|---|---|---|---|
| Assets | ||||
| Cash | $ 26 | $ 128 | ||
| Interest bearing deposits with banks | 0 | 1,500 | ||
| Securities purchased under agreements to resell | 4,040 | 2,392 | ||
| Receivables held for sale (including $195 million and $750 million at September 30, 2017 and December 31, 2016, respectively, collateralizing long-term debt) | [1] | 256 | 5,674 | |
| Real estate owned | 10 | 31 | ||
| Deferred income taxes, net | 1,863 | 2,897 | ||
| Bank owned life insurance | 827 | 817 | ||
| Other assets | 983 | 427 | ||
| Assets of discontinued operations | 19 | 16 | ||
| Total assets | 8,024 | 13,882 | ||
| Debt: | ||||
| Due to affiliates (including $- million and $485 million at September 30, 2017 and December 31, 2016, respectively, carried at fair value) | 0 | 3,300 | ||
| Long-term debt (including $253 million and $1.3 billion at September 30, 2017 and December 31, 2016, respectively, carried at fair value and $76 million and $404 million at September 30, 2017 and December 31, 2016, respectively, collateralized by receivables) | 1,836 | 4,340 | ||
| Total debt | 1,836 | 7,640 | ||
| Derivative related liabilities | 1 | 12 | ||
| Liability for postretirement benefits | 126 | 129 | ||
| Other liabilities | 344 | 610 | ||
| Liabilities of discontinued operations | 33 | 57 | ||
| Total liabilities | 2,340 | 8,448 | ||
| Common equity: | ||||
| Common stock ($0.01 par value, 100 shares authorized; 68 shares issued and outstanding at September 30, 2017 and December 31, 2016) | 0 | 0 | ||
| Additional paid-in capital | 23,070 | 23,138 | ||
| Accumulated deficit | (18,399) | (18,728) | ||
| Accumulated other comprehensive income (loss) | 13 | 24 | ||
| Total common equity | 4,684 | 4,434 | ||
| Total equity | 5,684 | 5,434 | ||
| Total liabilities and equity | 8,024 | 13,882 | ||
| Series C Preferred Stock [Member] | ||||
| Redeemable preferred stock: | ||||
| Series C ($0.01 par value, 1,000 shares authorized; 1,000 shares issued and outstanding at September 30, 2017 and December 31, 2016) | $ 1,000 | $ 1,000 | ||
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