EX-12 2 hbio123116ex12.htm EXHIBIT 12 Exhibit


EXHIBIT 12

HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES


 
Year Ended December 31,
2016
 
2015
 
2014
 
2013
 
2012
 
(dollars are in millions)
Income (loss) from continuing operations
$
(556
)
 
$
(394
)
 
$
547

 
$
713

 
$
(2,405
)
Income tax expense (benefit)
(258
)
 
(471
)
 
224

 
325

 
(1,406
)
Income (loss) from continuing operations before income tax
(814
)
 
(865
)
 
771

 
1,038

 
(3,811
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
512

 
895

 
1,058

 
1,370

 
1,777

Interest portion of rentals(1)
3

 
4

 
4

 
5

 
8

Total fixed charges
515

 
899

 
1,062

 
1,375

 
1,785

Total earnings from continuing operations as defined
$
(299
)
 
$
34

 
$
1,833

 
$
2,413

 
$
(2,026
)
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
(.58
)
 
.04

 
1.73

 
1.75

 
(1.14
)
 
(1) 
Represents one-third of rentals, which approximates the portion representing interest.