EX-12 16 c16312exv12.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)
                                         
    2007     2006     2005     2004     2003  
Pretax income from continuing operations before change in accounting principle
   $ 635,798     $ 510,482     $ 527,613     $ 459,570     $ 192,106  
 
                              
 
                                        
FIXED CHARGES:
                                        
Interest expense
     132,868       76,367       82,311       81,672       88,784  
Interest on deposits
     27,475       —       —       —       —  
Interest portion of net rent expense (a)
     106,063       100,606       81,386       72,607       65,528  
 
                              
 
                                        
Total fixed charges
     266,406       176,973       163,697       154,279       154,312  
 
                              
 
                                        
Earnings before income taxes and fixed charges
   $ 902,204     $ 687,455     $ 691,310     $ 613,849     $ 346,418  
 
                              
 
                                        
Ratio of earnings to fixed charges
                                        
Including interest on deposits
     3.4       3.9       4.2       4.0       2.2  
Excluding interest on deposits
     3.8       3.9       4.2       4.0       2.2  
 
(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, interest paid on deposits, and the estimated interest portion of rents.