HSBC 2007 Annual Report Download - page 180

HSBC HOLDINGS PLC
Report of the Directors: Financial Review (continued)
Other financial information > Contractual obligations / Ratios / Loan maturities
178
Contractual obligations
The table below provides details of HSBC’s material contractual obligations as at 31 December 2007.
Payments due by period
Total
Less than
1 year 1–5 years
More than
5 years
US$m US$m US$m US$m
Long-term debt obligations .......................................... 318,653 111,101 131,345 76,207
Term deposits and certificates of deposit ..................... 278,693 263,557 15,136 –
Capital (finance) lease obligations ............................... 703 15 27 661
Operating lease obligations .......................................... 4,559 799 2,024 1,736
Purchase obligations ..................................................... 942 420 522 –
Short positions in debt securities and equity shares ..... 108,246 83,598 9,690 14,958
Current tax liability ....................................................... 2,559 2,559 – –
Pension obligations ....................................................... 9,055 625 3,450 4,980
723,410 462,674 162,194 98,542
Ratios of earnings to combined fixed charges (and preference share dividends)
Year ended 31 December
2007 2006 2005 2004 2003
Ratios of earnings to combined fixed charges
Ratios in accordance with IFRSs
– excluding interest on deposits ............................................... 7.52 7.93 9.60 8.64 –
– including interest on deposits ................................................ 1.34 1.41 1.59 1.86 –
Ratios in accordance with UK GAAP
– excluding interest on deposits ............................................... – – – 8.07 7.41
– including interest on deposits ................................................ – – – 1.81 1.80
Ratios of earnings to combined fixed charges and
preference share dividends
Ratios in accordance with IFRSs:
– excluding interest on deposits ............................................... 6.96 7.22 9.16 8.64 –
– including interest on deposits ................................................ 1.34 1.40 1.59 1.86 –
Ratios in accordance with UK GAAP
– excluding interest on deposits ............................................... – – – 8.07 7.41
– including interest on deposits ................................................ – – – 1.81 1.80
For the purpose of calculating the ratios, earnings consist of income from continuing operations before taxation and minority interests,
plus fixed charges, and after deduction of the unremitted pre-tax income of associated undertakings. Fixed charges consist of total interest
expense, including or excluding interest on deposits, as appropriate, preference share dividends, as applicable, and the proportion of
rental expense deemed representative of the interest factor.
The above table contains ratios based on UK GAAP, HSBC’s previous primary GAAP, which is not comparable to financial information
based upon IFRSs, as explained in HSBC’s 2004 IFRSs Comparative Financial Information published on 5 July 2004.