Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2012

Insurance business

Operating Results Of Discontinued Operations

The following summarizes the operating results of our discontinued Insurance business for the periods presented:



Year Ended December 31,	2012			2011		2010
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	167		$	362	$	373
(Loss) income from discontinued operations before income tax⁽²⁾	(162		)	17		15

⁽¹⁾

Interest expense, which is included as a component of net interest income, 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⁾	For the year ended December 31, 2012 amounts include the lower of amortized cost or fair value adjustment of $119 million as discussed above which was reported as a component of other revenues as well as the impact of ceasing the issuance of new term life insurance in the United States effective January 2012.

Summary of Assets and Liabilities of Disposal Group Held for Sale

The following summarizes the assets and liabilities which are part of the disposal group held for sale related to our Insurance operations at December 31, 2012 and 2011 which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet.



At December 31,	2012		2011
	(in millions)
Cash	$	2	$	5
Interest bearing deposits with banks	29		3
Available-for-sale securities	1,411		1,851
Other assets	226		143
Assets of discontinued operations	$	1,668	$	2,002
Insurance policy and claim reserves	$	988	$	1,049
Other liabilities	224		43
Liabilities of discontinued operations	$	1,212	$	1,092

Commercial Business

Operating Results Of Discontinued Operations

The following summarizes the operating results of our discontinued Commercial business for the periods presented:



Year Ended December 31,	2012		2011		2010
	(in millions)
Net interest income and other revenues⁽¹⁾	$	23	$	10	$	85
Income from discontinued operations before income tax	20		6		84

⁽¹⁾

Card and Retail Services

Operating Results Of Discontinued Operations

The following summarizes the operating results of our discontinued Card and Retail Services business for the periods presented:



Year Ended December 31,	2012		2011		2010
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	3,342	$	3,729	$	3,852
Income from discontinued operations before income tax⁽²⁾	2,649		1,364		997

⁽¹⁾


⁽²⁾	For the year ended December 31, 2012, amounts include the gain on sale to Capital One of $2.2 billion.

Summary of Assets and Liabilities of Disposal Group Held for Sale

The following summarizes the assets and liabilities of our discontinued Card and Retail Services business at December 31, 2012 and 2011 which are reported as a component of Assets of discontinued operations and Liabilities of discontinued operations in our consolidated balance sheet.



At December 31,	2012		2011
	(in millions)
Cash	$	197	$	96
Receivables	—		9,001
Intangible assets	—		514
Properties and equipment, net	—		95
Other assets	84		1,102
Assets of discontinued operations	$	281	$	10,808
Long-term debt	$	—	$	211
Other liabilities⁽¹⁾	283		1,257
Liabilities of discontinued operations	$	283	$	1,468

⁽¹⁾

At December 31, 2012, other liabilities primarily consists of amounts due to Capital One for cash collections we have received on customer accounts while we continue to service these accounts on an interim basis and legal accruals. Other liabilities at December 31, 2012 also includes $59 million with respect to actions taken and to be taken in connection with an industry review of enhancement services products.

Taxpayer Finanacial Services

Operating Results Of Discontinued Operations

The following summarizes the operating results of our TFS business for the periods presented:



Year Ended December 31,	2012		2011			2010
	(in millions)
Net interest income and other revenues⁽¹⁾	$	—	$	2		$	68
Income (loss) from discontinued operations before income tax	—		(4		)	20

⁽¹⁾

Interest expense, which is included as a component of net interest income, has been 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.

Auto Finance

Operating Results Of Discontinued Operations

The following summarizes the operating results of our Auto Finance business for the periods presented:



Year Ended December 31,	2012		2011			2010
	(in millions)
Net interest income and other revenues⁽¹⁾⁽²⁾	$	14	$	—		$	219
Income (loss) from discontinued operations before income tax⁽²⁾	14		(3		)	(46		)

⁽¹⁾


⁽²⁾	For the year ended December 31, 2012, amounts reflect the receipt of a state sales tax refund from the state of California related to accounts that were charged-off prior to the sale of the Auto Finance business.