Attached files
| file | filename |
|---|---|
| EX-31 - EXHIBIT 31 - HSBC Finance Corp | hbio93015ex31.htm |
| 10-Q - 10-Q - HSBC Finance Corp | hbio9301510-q.htm |
| EX-32 - EXHIBIT 32 - HSBC Finance Corp | hbio93015ex32.htm |
EXHIBIT 12
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Nine Months Ended September 30, | 2015 | 2014 | |||||
(dollars are in millions) | |||||||
Income (loss) from continuing operations | $ | (250 | ) | $ | 509 | ||
Income tax expense (benefit) | (357 | ) | 182 | ||||
Income (loss) from continuing operations before income tax expense | (607 | ) | 691 | ||||
Fixed charges: | |||||||
Interest expense | 701 | 804 | |||||
Interest portion of rentals(1) | 3 | 3 | |||||
Total fixed charges | 704 | 807 | |||||
Total earnings from continuing operations as defined | $ | 97 | $ | 1,498 | |||
Ratio of earnings to fixed charges | .14 | 1.86 | |||||
Preferred stock dividends(2) | $ | 145 | $ | 145 | |||
Ratio of earnings to combined fixed charges and preferred stock dividends | .11 | 1.57 | |||||
(1) | Represents one-third of rentals, which approximates the portion representing interest. |
(2) | Preferred stock dividends are grossed up to their pretax equivalents. |