EX-12 3 amtd_20180930xex12.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,
 
 
2018
 
2017
 
2016
 
2015
 
2014
Determination of earnings:
 
 
 
 
 
 
 
 
 
 
Pre-tax income
 
$
1,887

 
$
1,394

 
$
1,265

 
$
1,288

 
$
1,270

Fixed charges
 
149

 
99

 
78

 
65

 
47

Less: Capitalized interest
 
(1
)
 
(1
)
 
(1
)
 
—

 
—

Undistributed income of equity investee
 
—

 
—

 
—

 
—

 
—

Earnings (A)
 
$
2,035

 
$
1,492

 
$
1,342

 
$
1,353

 
$
1,317

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest on borrowings (1)
 
$
99

 
$
71

 
$
53

 
$
43

 
$
25

Capitalized interest
 
1

 
1

 
1

 
—

 
—

Brokerage interest expense
 
21

 
9

 
7

 
6

 
6

Interest portion of rent expense
 
28

 
18

 
17

 
16

 
16

Total fixed charges (B)
 
$
149

 
$
99

 
$
78

 
$
65

 
$
47


Ratio of earnings to fixed charges (A) ÷ (B)
 
13.7

 
15.1

 
17.2

 
20.8

 
28.0

Ratio of earnings to fixed charges, excluding brokerage interest expense (2)
 
15.7

 
16.5

 
18.8

 
22.8

 
32.0

 
(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.