Pensions and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Pensions and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Defined Benefit Pension Plan  The components of pension expense for the defined benefit pension plan recorded in our consolidated statement of income and shown in the table below reflect the portion of 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 us.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in millions)
Service cost – benefits earned during the period	$	1		$	1		$	3		$	3
Interest cost on projected benefit obligation	17			18			53			52
Expected return on assets	(22		)	(19		)	(64		)	(60		)
Recognized losses	8			10			27			36
Pension expense	$	4		$	10		$	19		$	31

Pension expense was lower during the three and nine months ended September 30, 2014 due to lower recognized losses as well as a higher expected return on plan assets. During the first quarter of 2014, an additional contribution of $74 million was made to the Plan.

Postretirement Plans Other Than Pensions  The components of net periodic benefit cost for our postretirement plans other than pension are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014			2013
	(in millions)
Interest cost	$	1	$	1	$	2		$	2
Amortization of gain	—		—		(1		)	—
Net periodic postretirement benefit cost	$	1	$	1	$	1		$	2