Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
BLOCK FINANCIAL LLC
| Three months ended July 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Pretax income from continuing operations | $ | (19,329 | ) | $ | (3,107 | ) | $ | (51,989 | ) | $ | (16,843 | ) | $ | (99,253 | ) | $ | (40,555 | ) | ||||||
Add: Fixed charges | 21,963 | 90,213 | 92,325 | 88,130 | 102,388 | 106,858 | ||||||||||||||||||
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Total earnings before income taxes and fixed charges | $ | 2,634 | $ | 87,106 | $ | 40,336 | $ | 71,287 | $ | 3,135 | $ | 66,303 | ||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | 20,638 | 83,469 | 83,828 | 77,947 | 86,973 | 63,916 | ||||||||||||||||||
Interest on deposits | 1,323 | 6,735 | 8,488 | 10,174 | 14,069 | 42,878 | ||||||||||||||||||
Interest portion of net rent expense (a) | 2 | 9 | 9 | 9 | 1,346 | 64 | ||||||||||||||||||
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Total fixed charges | 21,963 | 90,213 | 92,325 | 88,130 | 102,388 | 106,858 | ||||||||||||||||||
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Ratio of earnings to fixed charges | ||||||||||||||||||||||||
Including interest on deposits | — | — | — | — | — | — | ||||||||||||||||||
Excluding interest on deposits | — | — | — | — | — | — | ||||||||||||||||||
Deficiency in the coverage of fixed charges by earnings before income taxes and fixed charges | (19,329 | ) | (3,107 | ) | (51,989 | ) | (16,843 | ) | (99,253 | ) | (40,555 | ) | ||||||||||||
| (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.
H&R BLOCK, INC.
| Three months ended July 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Pretax income from continuing operations | $ | (169,269 | ) | $ | 576,070 | $ | 627,703 | $ | 723,414 | $ | 736,132 | $ | 635,106 | |||||||||||
Add: Fixed charges | 37,965 | 164,848 | 169,140 | 170,528 | 186,729 | 186,389 | ||||||||||||||||||
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Total earnings before income taxes and fixed charges | $ | (131,304 | ) | $ | 740,918 | $ | 796,843 | $ | 893,942 | $ | 922,861 | $ | 821,495 | |||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | 20,754 | 85,354 | 85,695 | 79,656 | 89,385 | 61,934 | ||||||||||||||||||
Interest on deposits | 1,323 | 6,735 | 8,488 | 10,174 | 14,069 | 42,878 | ||||||||||||||||||
Interest portion of net rent expense (a) | 15,888 | 72,759 | 74,957 | 80,698 | 83,275 | 81,577 | ||||||||||||||||||
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Total fixed charges | 37,965 | 164,848 | 169,140 | 170,528 | 186,729 | 186,389 | ||||||||||||||||||
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Ratio of earnings to fixed charges | ||||||||||||||||||||||||
Including interest on deposits | — | 4.5 | 4.7 | 5.2 | 4.9 | 4.4 | ||||||||||||||||||
Excluding interest on deposits | — | 4.6 | 4.9 | 5.5 | 5.3 | 5.4 | ||||||||||||||||||
Deficiency in the coverage of fixed charges by earnings before income taxes and fixed charges | (169,269 | ) | ||||||||||||||||||||||
| (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.
