EX-12 2 hbio63016ex12.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


 
Six Months Ended June 30,
2016
 
2015
 
(dollars are in millions)
Loss from continuing operations
$
(200
)
 
$
(213
)
Income tax benefit
(119
)
 
(228
)
Loss from continuing operations before income tax expense
(319
)
 
(441
)
Fixed charges:
 
 
 
Interest expense
306

 
487

Interest portion of rentals(1)
2

 
2

Total fixed charges
308

 
489

Total earnings from continuing operations as defined
$
(11
)
 
$
48

Ratio of earnings to fixed charges
(.04
)
 
.10

Preferred stock dividends(2)
$
100

 
$
97

Ratio of earnings to combined fixed charges and preferred stock dividends
(.03
)
 
.08

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