EX-12 2 hbio123114ex12.htm EXHIBIT 12 HBIO 12.31.14 EX 12


EXHIBIT 12

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


 
Year Ended December 31,
2014
 
2013
 
2012
 
2011
 
2010
 
(dollars are in millions)
Income (loss) from continuing operations
$
547

 
$
713

 
$
(2,405
)
 
$
(2,326
)
 
$
(2,549
)
Income tax (expense) benefit
(224
)
 
(325
)
 
1,406

 
1,431

 
1,453

Income (loss) from continuing operations before income tax expense
771

 
1,038

 
(3,811
)
 
(3,757
)
 
(4,002
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
1,058

 
1,370

 
1,777

 
2,346

 
2,905

Interest portion of rentals(1)
4

 
5

 
8

 
9

 
7

Total fixed charges
1,062

 
1,375

 
1,785

 
2,355

 
2,912

Total earnings from continuing operations as defined
$
1,833

 
$
2,413

 
$
(2,026
)
 
$
(1,402
)
 
$
(1,090
)
Ratio of earnings to fixed charges
1.73

 
1.75

 
(1.14
)
 
(.60
)
 
(.37
)
Preferred stock dividends(2)
$
195

 
$
189

 
$
189

 
$
194

 
$
57

Ratio of earnings to combined fixed charges and preferred stock dividends
1.46

 
1.54

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