Pensions and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2012

Pension Plans [Member]

Components of Net Periodic Benefit Cost

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 HUSI.:

	Three Months  Ended September 30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
	(in millions)
Service cost – benefits earned during the period	$	3		$	4		$	11		$	12
Interest cost on projected benefit obligation		15			20			52			57
Expected return on assets		(25	)		(22	)		(66	)		(63	)
Recognized losses		16			9			34			27
Curtailment benefit recognized		(29	)		-			(31	)		-
Amortization of prior service cost		(2	)		(2	)		(4	)		(4	)
Net periodic pension cost (income)	$	(22	)	$	9		$	(4	)	$	29

Postretirement benefits [Member]

Components of Net Periodic Benefit Cost

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

	Three Months  Ended September 30,				Nine Months  Ended September 30,
	2012		2011		2012		2011
	(in millions)
Service cost	$	1	$	-	$	1	$	-
Interest cost		-		1		2	$	3
Amortization of transition obligation		1		1		2		2
Net periodic postretirement benefit cost	$	2	$	2	$	5	$	5