EX-12.2 3 hrb20170430exhibit122.htm EXHIBIT 12.2 Exhibit


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 12.2
 
BLOCK FINANCIAL LLC
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
2017

 
2016

 
2015

 
2014

 
2013

 
 
 
 
 
 
 
 
 
 
 
Pretax income (loss) from continuing operations
 
$
23,895

 
$
12,153

 
$
67,628

 
$
40,828

 
$
(6,112
)
Add: Fixed charges
 
92,263

 
68,713

 
45,575

 
57,010

 
79,500

Total earnings before income taxes and fixed charges
 
$
116,158

 
$
80,866

 
$
113,203

 
$
97,838

 
$
73,388

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
92,263

 
$
68,531

 
$
44,884

 
$
54,892

 
$
73,831

Interest on deposits
 
—

 
179

 
682

 
2,109

 
5,660

Interest portion of net rent expense (a)
 
—

 
3

 
9

 
9

 
9

Total fixed charges
 
$
92,263

 
$
68,713

 
$
45,575

 
$
57,010

 
$
79,500

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
 
 
 
 
 
 
 
 
 
Including interest on deposits
 
1.3

 
1.2

 
2.5

 
1.7

 
—

Excluding interest on deposits
 
1.3

 
1.2

 
2.5

 
1.7

 
—

 
 
 
 
 
 
 
 
 
 
 
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(6,112
)
 
 
 
 
 
 
 
 
 
 
 
(a) One-third of net rent expense is the portion deemed representative of the interest factor.

Note: In computing the ratio of earnings to fixed charges: (a) earnings have been based on income from continuing operations before income taxes and fixed charges (exclusive of interest capitalized) and (b) fixed charges consist of interest expense and the estimated interest portion of rents. Interest expense on uncertain tax positions has been excluded from fixed charges, as it is included as a component of income taxes in the consolidated financial statements.