Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

The components of pension expense for the defined benefit pension plan reflected in our consolidated statement of income (loss) are shown in the table below and reflect the portion of the pension expense of the combined HSBC North America Pension Plan (either the "HSBC North America Pension Plan" or the "Plan") which has been allocated to HSBC Finance Corporation:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in millions)
Service cost – benefits earned during the period	$	2		$	3		$	4		$	4
Interest cost on projected benefit obligation	14			12			28			21
Expected return on assets	(18		)	(17		)	(36		)	(27		)
Recognized losses	11			7			22			12
Pension expense	$	9		$	5		$	18		$	10

Pension expense was higher during the three and six months ended June 30, 2013 due to higher interest costs and higher recognized losses, partially offset by higher expected returns on plan assets due to higher asset levels.

Components of the net periodic benefit for our postretirement medical plan benefits other than pensions are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in millions)
Service cost – benefits earned during the period	$	—	$	—	$	—	$	—
Interest cost	2		2		4		3
Net periodic postretirement benefit cost	$	2	$	2	$	4	$	3