EX-12 6 c04679exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

EXHIBIT 12
H&R BLOCK
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands)
                                         
    2006     2005     2004     2003     2002  
Pretax income before change in accounting principle
   $ 827,393     $ 1,017,715     $ 1,162,975     $ 855,564     $ 709,136  
 
                              
FIXED CHARGES:
                                        
Interest expense
     103,810       87,924       84,556       92,644       116,141  
Interest portion of net rent expense (a)
     113,184       91,755       80,390       71,821       63,550  
 
                              
Total fixed charges
     216,994       179,679       164,946       164,465       179,691  
 
                              
Earnings before income taxes and fixed charges
   $ 1,044,387     $ 1,197,394     $ 1,327,921     $ 1,020,029     $ 888,827  
 
                              
Ratio of earnings to fixed charges
     4.8       6.7       8.1       6.2       4.9  
 
                              
     (a) One-third of net rent expense is the portion deemed representative of the interest factor.