H&R Block (HRB) 10-Q 2017 Q2 Quarterly report

													Exhibit 12.1
H&R BLOCK, INC.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
	Six months ended October 31,						Twelve months ended April 30,
	2016			2015			2016		2015		2014		2013		2012
Pretax earnings (loss) from continuing operations	$	(432,018	)	$	(424,828	)	$	569,479	$	742,805	$	767,116	$	702,011	$	576,070
Add: Fixed charges	82,265			58,805			145,311		116,977		125,162		146,954		164,848
Total earnings (loss) before income taxes and fixed charges	$	(349,753	)	$	(366,023	)	$	714,790	$	859,782	$	892,278	$	848,965	$	740,918
Fixed charges:
Interest expense	$	44,086		$	22,756		$	68,962	$	45,246	$	55,279	$	74,297	$	85,354
Interest on deposits	—			180			179		682		2,109		5,660		6,735
Interest portion of net rent expense (a)	38,179			35,869			76,170		71,049		67,774		66,997		72,759
Total fixed charges	$	82,265		$	58,805		$	145,311	$	116,977	$	125,162	$	146,954	$	164,848
Ratio of earnings to fixed charges:
Including interest on deposits	-			-			4.9		7.4		7.1		5.8		4.5
Excluding interest on deposits	-			-			4.9		7.4		7.2		6.0		4.6
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges	$	(432,018	)	$	(424,828	)	$	—	$	—	$	—	$	—	$	—

(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.