EX-12.2 3 hrb20180430exhibit122.htm EXHIBIT 12.2

|  |  |  |  |  |  |  | Exhibit 12.2 |
BLOCK FINANCIAL LLC
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
|  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Pretax earnings from continuing operations |  | $ | 26,153 |  |  | $ | 23,895 |  |  | $ | 12,153 |  |  | $ | 67,628 |  |  | $ | 40,828 |
Add: Fixed charges |  | 89,068 |  |  | 92,263 |  |  | 68,713 |  |  | 45,575 |  |  | 57,010 |
Total earnings before income taxes and fixed charges |  | $ | 115,221 |  |  | $ | 116,158 |  |  | $ | 80,866 |  |  | $ | 113,203 |  |  | $ | 97,838 |
Fixed charges: |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 89,068 |  |  | $ | 92,263 |  |  | $ | 68,531 |  |  | $ | 44,884 |  |  | $ | 54,892 |
Interest on deposits |  | — |  |  | — |  |  | 179 |  |  | 682 |  |  | 2,109 |
Interest portion of net rent expense (a) |  | — |  |  | — |  |  | 3 |  |  | 9 |  |  | 9 |
Total fixed charges |  | $ | 89,068 |  |  | $ | 92,263 |  |  | $ | 68,713 |  |  | $ | 45,575 |  |  | $ | 57,010 |
Ratio of earnings to fixed charges |  |  |  |  |  |  |  |  |  |
Including interest on deposits |  | 1.3 |  |  | 1.3 |  |  | 1.2 |  |  | 2.5 |  |  | 1.7 |
Excluding interest on deposits |  | 1.3 |  |  | 1.3 |  |  | 1.2 |  |  | 2.5 |  |  | 1.7 |

(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.