EX-12.2 4 hrb20180731exhibit122.htm EXHIBIT 12.2 Exhibit


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 12.2

BLOCK FINANCIAL LLC
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended July 31,
 
 
 
Twelve months ended April 30,
 
 
2018
 
2017
 
2018
 
2017
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax earnings (loss) from continuing operations
 
$
(2,747
)
 
$
(8,641
)
 
$
26,153

 
$
23,895

 
$
12,153

 
$
67,628

 
$
40,828

Add: Fixed charges
 
21,123

 
21,204

 
89,068

 
92,263

 
68,713

 
45,575

 
57,010

Total earnings before income taxes and fixed charges
 
$
18,376

 
$
12,563

 
$
115,221

 
$
116,158

 
$
80,866

 
$
113,203

 
$
97,838

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
21,123

 
$
21,204

 
$
89,068

 
$
92,263

 
$
68,531

 
$
44,884

 
$
54,892

Interest on deposits
 
—

 
—

 
—

 
—

 
179

 
682

 
2,109

Interest portion of net rent expense (a)
 
—

 
—

 
—

 
—

 
3

 
9

 
9

Total fixed charges
 
$
21,123

 
$
21,204

 
$
89,068

 
$
92,263

 
$
68,713

 
$
45,575

 
$
57,010

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Including interest on deposits
 
-

 
-

 
1.3

 
1.3

 
1.2

 
2.5

 
1.7

Excluding interest on deposits
 
-

 
-

 
1.3

 
1.3

 
1.2

 
2.5

 
1.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges
 
$
(2,747
)
 
$
(8,641
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.