EX-12 2 c49377exv12.htm EX-12 exv12
EXHIBIT 12
 
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                                         
    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    2008     2007     2006     2005     2004  
   
 
(Loss) income from continuing operations
  $ (2,751 )   $ (4,378 )   $ 1,485     $ 1,771     $ 1,869  
Income tax expense
    (1,166 )     (913 )     837       891       953  
                                         
Income from continuing operations before income tax expense
    (3,917 )     (5,291 )     2,322       2,662       2,822  
                                         
Fixed charges:
                                       
Interest expense
    6,274       7,711       6,996       4,275       2,726  
Interest portion of rentals(1)
    37       59       50       50       45  
                                         
Total fixed charges
    6,311       7,770       7,046       4,325       2,771  
                                         
Total earnings from continuing operations as defined
  $ 2,394     $ 2,479     $ 9,368     $ 6,987     $ 5,593  
Ratio of earnings to fixed charges
    .38       .32       1.33       1.62       2.02  
                                         
Preferred stock dividends(2)
    57       58       57       125       108  
                                         
Ratio of earnings to combined fixed charges and preferred stock dividends
    .38       .32       1.32       1.57       1.94  
                                         
 
 
(1) Represents one-third of rentals, which approximates the portion representing interest.
 
(2) Preferred stock dividends are grossed up to their pretax equivalents.