Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2012

Pension and Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits

10.    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 March 31,	2012			2011
	(in millions)
Service cost – benefits earned during the period	$	1		$	1
Interest cost on projected benefit obligation		9			8
Expected return on assets		(10	)		(8	)
Recognized losses		5			4
Pension expense	$	5		$	5

Pension expense was flat during the three months ended March 31, 2012 as higher expected returns on plan assets due to higher asset levels, including additional contributions to the Plan during March 2011, were offset by higher interest costs and recognized losses.

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

Three Months Ended March 31,	2012		2011
	(in millions)
Service cost – benefits earned during the period	$	-	$	-
Interest cost		1		1
Net periodic postretirement benefit cost	$	1	$	1