EX-12.1 5 d885802dex121.htm EX-12.1 EX-12.1

EXHIBIT 12.1

TD Ameritrade Holding Corporation

Computation of Ratio of Earnings to Fixed Charges

(Dollars in millions)

(Unaudited)

 

     Three Months Ended      Fiscal Year Ended September 30,  
     December 31, 2014      2014      2013     2012     2011     2010  

Determination of earnings:

               

Pre-tax income

    $ 334       $ 1,270       $ 1,088      $ 906      $ 1,017      $ 912   

Fixed charges

      15         47         52        53        55        67   

Less: Capitalized interest

      —           —           (2 )      (2 )      (1 )      —     

Undistributed income of equity investee

      —           —           (1 )      (1 )      —          —     
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (A)

 $ 349    $ 1,317    $ 1,137    $ 956    $ 1,071    $ 979   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

Interest on borrowings (1)

 $ 9    $ 25    $ 25    $ 28    $ 32    $ 45   

Capitalized interest

   —        —        2      2      1      —     

Brokerage interest expense

   2      6      7      6      5      6   

Interest portion of rent expense

   4      16      18      17      17      16   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges (B)

 $ 15    $ 47    $ 52    $ 53    $ 55    $ 67   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

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

   23.3      28.0      21.9      18.0      19.5      14.6   

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

   26.7      32.0      25.1      20.2      21.3      16.0   

 

(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.