EXHIBIT 12
H&R BLOCK, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS)
2003 2002 2001 2000 1999
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Pretax income from continuing operations (a) $ 987,077 $ 716,840 $ 473,078 $ 412,266 $ 383,541
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FIXED CHARGES:
Interest expense 92,644 116,141 242,551 155,027 69,338
Interest portion of net rent expense (b) 70,574 63,458 59,268 52,263 39,206
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Total fixed charges 163,218 179,599 301,819 207,290 108,544
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Earnings before income taxes and fixed charges $1,150,295 $ 896,439 $ 774,897 $ 619,556 $ 492,085
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Ratio of earnings to fixed charges 7.0 5.0 2.6 3.0 4.5
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(a) Pretax income from continuing operations is shown with the Credit Card
Segment as Discontinued Operations for all years presented.
(b) One-third of net rent expense is the portion deemed representative of the
interest factor.