Attached files
| file | filename |
|---|---|
| EX-32 - EXHIBIT 32 - HSBC Finance Corp | hbio93016ex32.htm |
| EX-31 - EXHIBIT 31 - HSBC Finance Corp | hbio93016ex31.htm |
| 10-Q - 10-Q - HSBC Finance Corp | hbio9301610-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
Nine Months Ended September 30, | 2016 | 2015 | |||||
(dollars are in millions) | |||||||
Loss from continuing operations | $ | (606 | ) | $ | (250 | ) | |
Income tax benefit | (322 | ) | (357 | ) | |||
Loss from continuing operations before income tax expense | (928 | ) | (607 | ) | |||
Fixed charges: | |||||||
Interest expense | 414 | 701 | |||||
Interest portion of rentals(1) | 3 | 3 | |||||
Total fixed charges | 417 | 704 | |||||
Total earnings from continuing operations as defined | $ | (511 | ) | $ | 97 | ||
Ratio of earnings to fixed charges | (1.23 | ) | .14 | ||||
Preferred stock dividends(2) | $ | 133 | $ | 145 | |||
Ratio of earnings to combined fixed charges and preferred stock dividends | (.93 | ) | .11 | ||||
(1) | Represents one-third of rentals, which approximates the portion representing interest. |
(2) | Preferred stock dividends are grossed up to their pretax equivalents. |