Exhibit 12.1
TD Ameritrade Holding Corporation
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
(Unaudited)
Nine Months Ended | Fiscal Year Ended September 30, | |||||||||||||||||||||||
June 30, 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Determination of earnings: | ||||||||||||||||||||||||
Pre-tax income | $ | 928 | $ | 1,088 | $ | 906 | $ | 1,017 | $ | 912 | $ | 1,060 | ||||||||||||
Fixed charges | 35 | 52 | 53 | 55 | 67 | 69 | ||||||||||||||||||
Less: Capitalized interest | — | (2 | ) | (2 | ) | (1 | ) | — | — | |||||||||||||||
Undistributed income of equity investee | — | (1 | ) | (1 | ) | — | — | — | ||||||||||||||||
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Earnings (A) | $ | 963 | $ | 1,137 | $ | 956 | $ | 1,071 | $ | 979 | $ | 1,129 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest on borrowings (1) | $ | 18 | $ | 25 | $ | 28 | $ | 32 | $ | 45 | $ | 40 | ||||||||||||
Capitalized interest | — | 2 | 2 | 1 | — | — | ||||||||||||||||||
Brokerage interest expense | 5 | 7 | 6 | 5 | 6 | 15 | ||||||||||||||||||
Interest portion of rent expense | 12 | 18 | 17 | 17 | 16 | 14 | ||||||||||||||||||
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Total fixed charges (B) | $ | 35 | $ | 52 | $ | 53 | $ | 55 | $ | 67 | $ | 69 | ||||||||||||
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Ratio of earnings to fixed charges (A) ÷ (B) | 27.5 | 21.9 | 18.0 | 19.5 | 14.6 | 16.4 | ||||||||||||||||||
Ratio of earnings to fixed charges, excluding brokerage interest expense (2) | 31.9 | 25.1 | 20.2 | 21.3 | 16.0 | 20.6 |
(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. |