Financial Statements of HSBC USA Inc. (Parent) (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Income Statement

Statement of Income (Loss) Year Ended December 31,	2012			2011			2010
	(in millions)
Income:
Dividends from banking subsidiaries	$	—		$	1		$	5
Dividends from other subsidiaries	57			2			2
Interest from subsidiaries	67			67			74
Interest from other HSBC affiliates	27			17			20
Other interest income	19			19			22
Other securities gains, net	21			—			1
Other income from subsidiaries	(290		)	(131		)	(89		)
Other income from other HSBC Affiliates	472			(18		)	217
Other income	(155		)	312			(30		)
Total income	218			269			222
Expenses:
Interest to subsidiaries	69			70			70
Interest to other HSBC Affiliates	65			48			19
Other Interest Expense	198			224			216
Provision for credit losses	—			(1		)	—
Other expenses with Other HSBC Affiliates	19			12			4
Other expenses	8			2			3
Total expenses	359			355			312
Loss before taxes and equity in undistributed income of subsidiaries	(141		)	(86		)	(90		)
Income tax benefit	47			62			47
Loss before equity in undistributed income of subsidiaries	(94		)	(24		)	(43		)
Equity in undistributed income (loss) of subsidiaries	(951		)	1,042			1,607
Net income (loss)	$	(1,045	)	$	1,018		$	1,564

Schedule of Comprehensive Income (Loss)

Statement of Comprehensive Income (Loss) Year Ended December 31,	2012			2011			2010
	(in millions)
Net income (loss)	$	(1,045	)	$	1,018		$	1,564
Net changes in unrealized gains (losses). net of tax as applicable on:
Securities available-for-sale, not other-than-temporarily impaired	109			786			165
Other-than-temporary impaired debt securities available-for-sale	—			1			55
Other-than-temporary impaired securities held-to-maturity	—			11			93
Adjustment to reverse other-than-temporary impairment on securities held-to-maturity due to deconsolidation of a variable interest entity	—			142			—
Derivatives designated as cash flow hedges	28			(142		)	13
Unrecognized actuarial gains, transition obligation and prior service costs relating to pension and postretirement benefits, net of tax	6			(3		)	(5		)
Other comprehensive income, net of tax	143			795			321
Comprehensive income (loss)	$	(902	)	$	1,813		$	1,885

Schedule of Condensed Cash Flow Statement

Statement of Cash Flows Year Ended December 31,	2012			2011			2010
	(in millions)
Cash flows from operating activities:
Net income (loss)	$	(1,045	)	$	1,018		$	1,564
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and deferred taxes	159			149			141
Net change in other accrued accounts	(3,744		)	765			708
Net change in fair value of non-trading derivatives	499			(240		)	(176		)
Undistributed loss (gain) of subsidiaries	951			(1,042		)	(1,607		)
Other, net	(263		)	(73		)	(291		)
Net cash provided by (used in) operating activities	(3,443		)	577			339
Cash flows from investing activities:
Net change in interest bearing deposits with banks	—			(900		)	64
Purchases of securities	(342		)	—			—
Sales and maturities of securities	14			21			107
Net change in loans	5			(390		)	295
Net change in investments in and advances to subsidiaries	(850		)	(1,134		)	(1,833		)
Other, net	1			—			105
Net cash used in investing activities	(1,172		)	(2,403		)	(1,262		)
Cash flows from financing activities:
Net change in short-term borrowings	186			1,809			67
Issuance of long-term debt, net of issuance costs	7,051			5,511			2,357
Repayment of long-term debt	(2,858		)	(5,450		)	(1,417		)
Dividends paid	(73		)	(73		)	(74		)
Capital contributions from parent	312			—			—
Additions (reductions) of capital surplus	(3		)	29			(10		)
Net cash provided by financing activities	4,615			1,826			923
Net change in cash and due from banks	—			—			—
Cash and due from banks at beginning of year	—			—			—
Cash and due from banks at end of year	$	—		$	—		$	—
Cash paid for:
Interest	$	317		$	338		$	295