H&R Block (HRB) 10-Q 2017 Q1 Quarterly report

												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,
	2016			2015		2016		2015		2014		2013			2012
Pretax earnings (loss) from continuing operations	$	(16,070	)	$	227	$	12,153	$	67,628	$	40,828	$	(6,112	)	$	(3,107	)
Add: Fixed charges	21,314			8,574		68,713		45,575		57,010		79,500			90,213
Total earnings before income taxes and fixed charges	$	5,244		$	8,801	$	80,866	$	113,203	$	97,838	$	73,388		$	87,106
Fixed charges:
Interest expense	$	21,314		$	8,436	$	68,531	$	44,884	$	54,892	$	73,831		$	83,469
Interest on deposits	—			136		179		682		2,109		5,660			6,735
Interest portion of net rent expense (a)	—			2		3		9		9		9			9
Total fixed charges	$	21,314		$	8,574	$	68,713	$	45,575	$	57,010	$	79,500		$	90,213
Ratio of earnings to fixed charges:
Including interest on deposits	-			1.0		1.2		2.5		1.7		-			-
Excluding interest on deposits	-			1.0		1.2		2.5		1.7		-			-
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges	$	(16,070	)	$	—	$	—	$	—	$	—	$	(6,112	)	$	(3,107	)

(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.