TD Ameritrade Holding 10-K 2018 FY Annual report

EXHIBIT 12

TD Ameritrade Holding Corporation
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
(Unaudited)
	Fiscal Year Ended September 30,
	2018			2017			2016			2015		2014
Determination of earnings:
Pre-tax income	$	1,887		$	1,394		$	1,265		$	1,288	$	1,270
Fixed charges	149			99			78			65		47
Less: Capitalized interest	(1		)	(1		)	(1		)	—		—
Undistributed income of equity investee	—			—			—			—		—
Earnings (A)	$	2,035		$	1,492		$	1,342		$	1,353	$	1,317
Fixed charges:
Interest on borrowings (1)	$	99		$	71		$	53		$	43	$	25
Capitalized interest	1			1			1			—		—
Brokerage interest expense	21			9			7			6		6
Interest portion of rent expense	28			18			17			16		16
Total fixed charges (B)	$	149		$	99		$	78		$	65	$	47
Ratio of earnings to fixed charges (A) ÷ (B)	13.7			15.1			17.2			20.8		28.0
Ratio of earnings to fixed charges, excluding brokerage interest expense (2)	15.7			16.5			18.8			22.8		32.0

(1) Interest on borrowings includes amortization of capitalized debt issuance costs.

(2) Because interest expense incurred in connection with brokerage activities is completely offset by brokerage interest revenue, the Company considers such interest to be a reduction of net revenues. Accordingly, the ratio of earnings to fixed charges, excluding brokerage interest expense, reflects the elimination of such interest expense from fixed charges.