EX-12 2 d272200dex12.htm EX-12 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,  
      2011     2010     2009     2008     2007  
     (dollars are in millions)  

Loss from continuing operations

    $ (2,310 )    $ (2,544 )    $ (5,917 )    $ (4,010 )    $ (6,841 ) 

Income tax benefit

      1,424        1,359        2,867        1,349        1,757   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loss from continuing operations before income tax benefit

      (3,734 )      (3,903 )      (8,784 )      (5,359 )      (8,598 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

           

Interest expense

      2,348        2,911        3,613        5,685        7,129   

Interest portion of rentals(1)

      9        7        34        37        59   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

      2,357        2,918        3,647        5,722        7,188   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings from continuing operations as defined

    $ (1,377 )    $ (985 )    $ (5,137 )    $ 363      $ (1,410 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      (.58 )      (.34 )      (1.41 )      .06        (.20 ) 

Preferred stock dividends(2)

    $ 194      $ 57      $ 57      $ 57      $ 58   

Ratio of earnings to combined fixed charges and preferred stock dividends

      (.54 )      (.33 )      (1.39 )      .06        (.19 ) 

 

 

(1) 

Represents one-third of rentals, which approximates the portion representing interest.

(2) 

Preferred stock dividends are grossed up to their pretax equivalents.