EX-12 2 rjf-ex12_2017930x10k0930.htm EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Exhibit
EXHIBIT 12

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
 
 
 
 
 
Year ended September 30,
$ in thousands

 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
 
Pre-tax income excluding noncontrolling interests
 
$
925,346

 
$
800,643

 
$
798,174

 
$
748,045

 
$
564,187

Fixed charges
 
237,885

 
148,329

 
135,874

 
131,466

 
136,749

Less: preferred stock dividends
 
—

 
—

 
—

 
—

 
—

Earnings
 
$
1,163,231

 
$
948,972

 
$
934,048

 
$
879,511

 
$
700,936

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
152,617

 
$
114,921

 
$
104,862

 
$
99,978

 
$
105,200

Estimated interest portion within rental expense
 
38,361

 
32,273

 
29,799

 
30,275

 
30,337

Amortization of debt issuance costs
 
1,161

 
1,135

 
1,213

 
1,213

 
1,212

Losses on extinguishment of debt
 
45,746

 
—

 
—

 
—

 
—

Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

Total fixed charges
 
$
237,885

 
$
148,329

 
$
135,874

 
$
131,466

 
$
136,749

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred stock dividends
 
4.89

 
6.40

 
6.87

 
6.69

 
5.13


As a result of our October 1, 2016 adoption of new consolidation guidance, we deconsolidated a number of tax credit fund VIEs that had been previously consolidated. As a result of the deconsolidation, interest expense associated with previously consolidated VIEs is no longer included in our Consolidated Financial Statements. Accordingly, the interest expense associated with all prior periods has been revised to exclude the interest expense associated with previously consolidated VIEs, in order to present interest expense in all prior periods on a comparable basis to the current period. See Note 2 of the Notes to Consolidated Financial Statements in this Form 10-K for additional information regarding this change.

Losses on early extinguishment of debt for the year ended September 30, 2017 includes a make-whole premium and the acceleration of unamortized debt issuance costs associated with the early extinguishment of our 8.60% Senior Notes due 2019 in September 2017 and our 6.90% Senior Notes due 2042 in March 2017, respectively.

We calculated our ratio of earnings to fixed charges and preferred stock dividends by adding pre-tax income excluding noncontrolling interests, plus fixed charges minus preferred stock dividends and dividing that sum by our fixed charges. Our fixed charges for this ratio consist of interest expense, the portion of our rental expense deemed to represent interest (calculated as one third of rental expense), amortization of debt issuance costs and loss on early extinguishment of debt and preferred stock dividends.

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