Attached files
| file | filename |
|---|---|
| 10-Q - FORM 10-Q - HSBC Finance Corp | c64242e10vq.htm |
| EX-31 - EX-31 - HSBC Finance Corp | c64242exv31.htm |
| EX-32 - EX-32 - HSBC Finance Corp | c64242exv32.htm |
EXHIBIT 12
HSBC
FINANCE CORPORATION
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Three Months Ended March 31, | 2011 | 2010 | ||||||
| (dollars are in millions) | ||||||||
|
Loss from continuing operations
|
$ | (19 | ) | $ | (646 | ) | ||
|
Income tax
|
193 | 352 | ||||||
|
Loss from continuing operations before income tax
|
(212 | ) | (998 | ) | ||||
|
Fixed charges:
|
||||||||
|
Interest expense
|
674 | 818 | ||||||
|
Interest portion of
rentals(1)
|
3 | 5 | ||||||
|
Total fixed charges
|
677 | 823 | ||||||
|
Total earnings (loss) from continuing operations as defined
|
$ | 465 | $ | (175 | ) | |||
|
Ratio of earnings to fixed charges
|
.69 | (.21 | ) | |||||
|
Preferred stock
dividends(2)
|
52 | 14 | ||||||
|
Ratio of earnings (loss) to combined fixed charges and preferred
stock dividends
|
.64 | (.21 | ) | |||||
| (1) | Represents one-third of rentals, which approximates the portion representing interest. | |
| (2) | Preferred stock dividends are grossed up to their pretax equivalents. |