EX-12 2 hbio123113ex12.htm EXHIBIT 12 HBIO 12.31.13 EX12


EXHIBIT 12
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS


 
Twelve Months Ended December 31,
2013
 
2012
 
2011
 
2010
 
2009
 
(dollars are in millions)
Income (loss) from continuing operations
$
713

 
$
(2,405
)
 
$
(2,326
)
 
$
(2,549
)
 
$
(5,908
)
Income tax (expense) benefit
(325
)
 
1,406

 
1,431

 
1,453

 
2,881

Income (loss) from continuing operations before income tax (expense) benefit
1,038

 
(3,811
)
 
(3,757
)
 
(4,002
)
 
(8,789
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
1,370

 
1,777

 
2,346

 
2,905

 
3,602

Interest portion of rentals(1)
5

 
8

 
9

 
7

 
34

Total fixed charges
1,375

 
1,785

 
2,355

 
2,912

 
3,636

Total earnings from continuing operations as defined
$
2,413

 
$
(2,026
)
 
$
(1,402
)
 
$
(1,090
)
 
$
(5,153
)
Ratio of earnings to fixed charges
1.75

 
(1.14
)
 
(.60
)
 
(.37
)
 
(1.42
)
Preferred stock dividends(2)
$
189

 
$
189

 
$
194

 
$
57

 
$
57

Ratio of earnings to combined fixed charges and preferred stock dividends
1.54

 
(1.03
)
 
(.55
)
 
(.37
)
 
(1.40
)
 
(1)
Represents one-third of rentals, which approximates the portion representing interest.
(2)
Preferred stock dividends are grossed up to their pretax equivalents.