Pension and Other Postretirement Benefits

Defined Benefit Pension Plans The following table reflects the components of pension expense for the defined benefit pension plan recorded in our consolidated statement of income (loss) and reflects 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 September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in millions)
Service cost – benefits earned during the period	$	2		$	1		$	6		$	5
Interest cost on projected benefit obligation	14			14			42			35
Expected return on assets	(16		)	(19		)	(52		)	(46		)
Recognized losses	8			11			30			23
Curtailment gain	—			(4		)	—			(4		)
Pension expense	$	8		$	3		$	26		$	13

Pension expense was higher during the nine months ended September 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. The year-ago periods benefited from a curtailment gain that is fully described in Note 17, "Pension and Other Postretirement Benefits," in our 2012 Form 10-K.

Postretirement Plans Other Than Pensions The following table summarizes the components of the net periodic benefit for our postretirement medical plan benefits other than pensions:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(in millions)
Service cost – benefits earned during the period	$	—	$	—	$	—	$	—
Interest cost	2		2		6		5
Net periodic postretirement benefit cost	$	2	$	2	$	6	$	5