EX-12.2 3 hrb20151031exhibit122.htm EXHIBIT 12.2 Exhibit


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 12.2
 
BLOCK FINANCIAL LLC
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended October 31,
 
Twelve months ended April 30,
 
 
2015
 
2014
 
2015
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax income (loss) from continuing operations
 
$
(12,306
)
 
$
(13,144
)
 
$
67,628

 
$
40,828

 
$
(6,112
)
 
$
(3,107
)
 
$
(51,989
)
Add: Fixed charges
 
22,704

 
27,726

 
45,575

 
57,010

 
79,500

 
90,213

 
92,325

Total earnings before income taxes and fixed charges
 
$
10,398

 
$
14,582

 
$
113,203

 
$
97,838

 
$
73,388

 
$
87,106

 
$
40,336

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
22,521

 
$
27,436

 
$
44,884

 
$
54,892

 
$
73,831

 
$
83,469

 
$
83,828

Interest on deposits
 
180

 
285

 
682

 
2,109

 
5,660

 
6,735

 
8,488

Interest portion of net rent expense (a)
 
3

 
5

 
9

 
9

 
9

 
9

 
9

Total fixed charges
 
$
22,704

 
$
27,726

 
$
45,575

 
$
57,010

 
$
79,500

 
$
90,213

 
$
92,325

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Including interest on deposits
 
-

 
-

 
2.5

 
1.7

 
-

 
-

 
-

Excluding interest on deposits
 
-

 
-

 
2.5

 
1.7

 
-

 
-

 
-

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges
 
$
(12,306
)
 
$
(13,144
)
 
$
—

 
$
—

 
$
(6,112
)
 
$
(3,107
)
 
$
(51,989
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 and the estimated interest portion of rents. Interest expense on uncertain tax positions has been excluded from fixed charges, as it is included as a component of income taxes in the consolidated financial statements.