Attached files
| file | filename |
|---|---|
| 10-Q - 10-Q - HSBC Finance Corp | hbio6301410-q.htm |
| EX-31 - EXHIBIT 31 - HSBC Finance Corp | hbio63014ex31.htm |
| EXCEL - IDEA: XBRL DOCUMENT - HSBC Finance Corp | Financial_Report.xls |
| EX-32 - EXHIBIT 32 - HSBC Finance Corp | hbio63014ex32.htm |
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, | 2014 | 2013 | |||||
(dollars are in millions) | |||||||
Income from continuing operations | $ | 348 | $ | 575 | |||
Income tax expense | 95 | 285 | |||||
Income from continuing operations before income tax expense | 443 | 860 | |||||
Fixed charges: | |||||||
Interest expense | 541 | 732 | |||||
Interest portion of rentals(1) | 2 | 3 | |||||
Total fixed charges | 543 | 735 | |||||
Total earnings from continuing operations as defined | $ | 986 | $ | 1,595 | |||
Ratio of earnings to fixed charges | 1.82 | 2.17 | |||||
Preferred stock dividends(2) | $ | 97 | $ | 97 | |||
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.54 | 1.92 | |||||
(1) | Represents one-third of rentals, which approximates the portion representing interest. |
(2) | Preferred stock dividends are grossed up to their pretax equivalents. |