EX-12 2 hbio123112ex12.htm EXHIBIT 12 HBIO 12.31.12 EX12


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,
  
2012
 
2011
 
2010
 
2009
 
2008
 
(dollars are in millions)
Loss from continuing operations
$
(2,405
)
 
$
(2,326
)
 
$
(2,549
)
 
$
(5,908
)
 
$
(3,951
)
Income tax benefit
1,406

 
1,431

 
1,453

 
2,881

 
1,252

Loss from continuing operations before income tax benefit
(3,811
)
 
(3,757
)
 
(4,002
)
 
(8,789
)
 
(5,203
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
1,777

 
2,346

 
2,905

 
3,602

 
5,688

Interest portion of rentals(1)
8

 
9

 
7

 
34

 
37

Total fixed charges
1,785

 
2,355

 
2,912

 
3,636

 
5,725

Total earnings from continuing operations as defined
$
(2,026
)
 
$
(1,402
)
 
$
(1,090
)
 
$
(5,153
)
 
$
522

Ratio of earnings to fixed charges
(1.14
)
 
(.60
)
 
(.37
)
 
(1.42
)
 
.09

Preferred stock dividends(2)
$
189

 
$
194

 
$
57

 
$
57

 
$
57

Ratio of earnings to combined fixed charges and preferred stock dividends
(1.03
)
 
(.55
)
 
(.37
)
 
(1.40
)
 
.09

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