EX-12.1 2 hrb20180430exhibit121.htm EXHIBIT 12.1 Exhibit



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 12.1
 
H&R BLOCK
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
2018

 
2017

 
2016

 
2015

 
2014

 
 
 
 
 
 
 
 
 
 
 
Pretax earnings from continuing operations
 
$
668,732

 
$
629,287

 
$
569,479

 
$
742,805

 
$
767,116

Add: Fixed charges
 
171,342

 
171,698

 
145,311

 
116,977

 
125,162

Total earnings before income taxes and fixed charges
 
$
840,074

 
$
800,985

 
$
714,790

 
$
859,782

 
$
892,278

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
89,372

 
$
92,951

 
$
68,962

 
$
45,246

 
$
55,279

Interest on deposits
 
—

 
—

 
179

 
682

 
2,109

Interest portion of net rent expense (a)
 
81,970

 
78,747

 
76,170

 
71,049

 
67,774

Total fixed charges
 
$
171,342

 
$
171,698

 
$
145,311

 
$
116,977

 
$
125,162

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
 
 
 
 
 
 
 
 
 
Including interest on deposits
 
4.9

 
4.7

 
4.9

 
7.4

 
7.1

Excluding interest on deposits
 
4.9

 
4.7

 
4.9

 
7.4

 
7.2

 
 
 
 
 
 
 
 
 
 
 
(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.