EX-12 4 amtd_20170930xex12.htm EXHIBIT 12 Exhibit

EXHIBIT 12
TD Ameritrade Holding Corporation
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30,
 
 
2017
 
2016
 
2015
 
2014
 
2013
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
Pre-tax income
 
$
1,394

 
$
1,265

 
$
1,288

 
$
1,270

 
$
1,088

Fixed charges
 
99

 
78

 
65

 
47

 
52

Less: Capitalized interest
 
(1
)
 
(1
)
 
—

 
—

 
(2
)
Undistributed income of equity investee
 
—

 
—

 
—

 
—

 
(1
)
Earnings (A)
 
$
1,492

 
$
1,342

 
$
1,353

 
$
1,317

 
$
1,137

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest on borrowings (1)
 
$
71

 
$
53

 
$
43

 
$
25

 
$
25

Capitalized interest
 
1

 
1

 
—

 
—

 
2

Brokerage interest expense
 
9

 
7

 
6

 
6

 
7

Interest portion of rent expense
 
18

 
17

 
16

 
16

 
18

Total fixed charges (B)
 
$
99

 
$
78

 
$
65

 
$
47

 
$
52


Ratio of earnings to fixed charges (A) ÷ (B)
 
15.1

 
17.2

 
20.8

 
28.0

 
21.9

Ratio of earnings to fixed charges, excluding brokerage interest expense (2)
 
16.5

 
18.8

 
22.8

 
32.0

 
25.1

 
(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.