EX-12 2 hbio123115ex12.htm EXHIBIT 12 Exhibit


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,
2015
 
2014
 
2013
 
2012
 
2011
 
(dollars are in millions)
Income (loss) from continuing operations
$
(394
)
 
$
547

 
$
713

 
$
(2,405
)
 
$
(2,326
)
Income tax expense (benefit)
(471
)
 
(224
)
 
(325
)
 
1,406

 
1,431

Income (loss) from continuing operations before income tax expense
(865
)
 
771

 
1,038

 
(3,811
)
 
(3,757
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
895

 
1,058

 
1,370

 
1,777

 
2,346

Interest portion of rentals(1)
4

 
4

 
5

 
8

 
9

Total fixed charges
899

 
1,062

 
1,375

 
1,785

 
2,355

Total earnings from continuing operations as defined
$
34

 
$
1,833

 
$
2,413

 
$
(2,026
)
 
$
(1,402
)
Ratio of earnings to fixed charges
.04

 
1.73

 
1.75

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

 
$
195

 
$
189

 
$
189

 
$
194

Ratio of earnings to combined fixed charges and preferred stock dividends
.03

 
1.46

 
1.54

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