Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Assumptions Used

The assumptions used in determining the benefit obligation of our postretirement benefit plans are as follows:

At December 31,	2012		2011		2010
Discount rate	3.35	%	4.25	%	4.95	%
Salary increase assumption	2.75		2.75		2.75

Schedule of Expected Benefit Payments

Estimated future benefit payments for our postretirement benefit plans for both continuing and discontinued operations are as follows:

	(in millions)
2013	$	18
2014	18
2015	18
2016	17
2017	17
2018-2022	77

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed health care cost trend rates would increase (decrease) service and interest costs and the postretirement benefit obligation as follows:

	One Percent Increase		One Percent Decrease
	(in millions)
Effect on total of service and interest cost components	$	.1	$	(.1	)
Effect on postretirement benefit obligation	3.9		(3.5		)

Pension Plans, Defined Benefit [Member]

Components of Pension Expense for Defined Benefit Pension Plan

The table below reflects the portion of pension expense and its related components of the HSBC North America Pension Plan which has been allocated to us and is recorded in our consolidated statement of income (loss).

Year Ended December 31,	2012			2011			2010
	(in millions)
Service cost – benefits earned during the period	$	4		$	5		$	12
Interest cost on projected benefit obligation	47			33			39
Expected return on assets	(65		)	(39		)	(39		)
Recognized losses	33			18			23
Curtailment gain	(4		)	(1		)	—
Amortization of prior service costs	(1		)	—			—
Pension expense	$	14		$	16		$	35

Schedule of Assumptions Used

The assumptions used in determining pension expense of the HSBC North America Pension Plan are as follows:

	2012		2011		2010
Discount rate	4.60	%	5.30	%	5.60	%
Salary increase assumption	2.75		2.75		2.90
Expected long-term rate of return on Plan assets	7.00		7.25		7.70

Schedule of Expected Benefit Payments

Estimated future benefit payments for the HSBC North America Pension Plan are as follows:

	HSBC North America
	(in millions)
2013	$	183
2014	186
2015	189
2016	193
2017	196
2018-2022	1,031

Other Postretirement Benefit Plans, Defined Benefit [Member]

Components of Pension Expense for Defined Benefit Pension Plan

The net postretirement benefit cost for continuing operations included the following:

Year Ended December 31,	2012		2011		2010
	(in millions)
Service cost – benefits earned during the period	$	—	$	—	$	1
Interest cost	6		5		6
Net periodic postretirement benefit cost	$	6	$	5	$	7

Schedule of Assumptions Used

The assumptions used in determining the net periodic postretirement benefit cost for our postretirement benefit plans are as follows:

	2012		2011		2010
Discount rate	4.25	%	4.95	%	5.20	%
Salary increase assumption	2.75		2.75		2.90

Schedule of Accumulated and Projected Benefit Obligations

A reconciliation of the beginning and ending balances of the accumulated postretirement benefit obligation for both continuing and discontinued operations is as follows:

	2012			2011
	(in millions)
Accumulated benefit obligation at beginning of year	$	195		$	184
Service cost	1			1
Interest cost	7			9
Actuarial losses	26			13
Benefits paid, net	(21		)	(12		)
Plan curtailment	$	(11	)	$	—
Accumulated benefit obligation at end of year	$	197		$	195