Attached files
| file | filename |
|---|---|
| EX-31 - EXHIBIT 31 - HSBC Finance Corp | hbio33116ex31.htm |
| EX-32 - EXHIBIT 32 - HSBC Finance Corp | hbio33116ex32.htm |
| 10-Q - 10-Q - HSBC Finance Corp | hbio3311610-q.htm |
EXHIBIT 12
HSBC FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Three Months Ended March 31, | 2016 | 2015 | |||||
(dollars are in millions) | |||||||
Loss from continuing operations | $ | (70 | ) | $ | (5 | ) | |
Income tax benefit | (56 | ) | (28 | ) | |||
Loss from continuing operations before income tax expense | (126 | ) | (33 | ) | |||
Fixed charges: | |||||||
Interest expense | 160 | 248 | |||||
Interest portion of rentals(1) | 1 | 1 | |||||
Total fixed charges | 161 | 249 | |||||
Total earnings from continuing operations as defined | $ | 35 | $ | 216 | |||
Ratio of earnings to fixed charges | .22 | .87 | |||||
Preferred stock dividends(2) | $ | 49 | $ | 49 | |||
Ratio of earnings to combined fixed charges and preferred stock dividends | .17 | .72 | |||||
(1) | Represents one-third of rentals, which approximates the portion representing interest. |
(2) | Preferred stock dividends are grossed up to their pretax equivalents. |