Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Pension 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 (loss) 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 June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in millions)
Interest cost on projected benefit obligation	17			16			35			33
Expected return on plan assets	(22		)	(23		)	(42		)	(46		)
Amortization of net actuarial loss	9			10			19			19
Administrative costs	2			1			3			3
Pension expense	$	6		$	4		$	15		$	9

Higher pension expense during the three and six months ended June 30, 2016 was due primarily to a lower expected return on plan assets which reflects market conditions and a shift to more fixed income securities in the investment portfolio to better match pension liabilities.

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 June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in millions)
Interest cost on accumulated benefit obligation	$	—	$	—	$	1	$	1
Net periodic postretirement benefit cost	$	—	$	—	$	1	$	1