SCHWAB CHARLES CORP - FORM 10-Q - EX-12.1 - May 6, 2016

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EX-32.1 - EX-32.1 - SCHWAB CHARLES CORPschw-20160331xex32_1.htm
EX-31.2 - EX-31.2 - SCHWAB CHARLES CORPschw-20160331xex31_2.htm
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10-Q - 10-Q - SCHWAB CHARLES CORPschw-20160331x10q.htm
EX-31.1 - EX-31.1 - SCHWAB CHARLES CORPschw-20160331xex31_1.htm

THE CHARLES SCHWAB CORPORATION

 

 

 

 



EXHIBIT 12.1



Computation of Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends and Other

(Dollar Amounts in Millions)

(Unaudited)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 



March 31, 2016

 

2015

 

 

2014

 

 

2013

 

 

2012

 

 

2011

Earnings before taxes on earnings

 

$

 655 

 

$

 2,279 

 

$

 2,115 

 

$

 1,705 

 

$

 1,450 

 

$

 1,392 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank deposits

 

 

 8 

 

 

 29 

 

 

 30 

 

 

 31 

 

 

 42 

 

 

 62 

Payables to brokerage clients

 

 

 -

 

 

 2 

 

 

 2 

 

 

 3 

 

 

 3 

 

 

 3 

Long-term debt

 

 

 26 

 

 

 92 

 

 

 73 

 

 

 69 

 

 

 103 

 

 

 108 

Other

 

 

 4 

 

 

 9 

 

 

 (3)

 

 

 2 

 

 

 2 

 

 

 2 

Total

 

 

 38 

 

 

 132 

 

 

 102 

 

 

 105 

 

 

 150 

 

 

 175 

Interest portion of rental expense

 

 

 21 

 

 

 77 

 

 

 71 

 

 

 69 

 

 

 68 

 

 

 62 

Total fixed charges (A)

 

 

 59 

 

 

 209 

 

 

 173 

 

 

 174 

 

 

 218 

 

 

 237 

Earnings before taxes on earnings and fixed charges (B)

 

$

 714 

 

$

 2,488 

 

$

 2,288 

 

$

 1,879 

 

$

 1,668 

 

$

 1,629 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (B) ÷ (A) (1)

 

 

 12.1 

 

 

 11.9 

 

 

 13.2 

 

 

 10.8 

 

 

 7.7 

 

 

 6.9 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges, excluding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

bank deposits and payables to brokerage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

clients interest expense (2)

 

 

 13.8 

 

 

 13.8 

 

 

 16.0 

 

 

 13.2 

 

 

 9.4 

 

 

 9.1 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

 59 

 

$

 209 

 

$

 173 

 

$

 174 

 

$

 218 

 

$

 237 

Preferred stock dividends and other (3)

 

 

 32 

 

 

 131 

 

 

 96 

 

 

 97 

 

 

 70 

 

 

 -

Total fixed charges and preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and other (C)

 

$

 91 

 

$

 340 

 

$

 269 

 

$

 271 

 

$

 288 

 

$

 237 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges and preferred

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stock dividends and other (B) ÷ (C) (1)

 

 

 7.8 

 

 

 7.3 

 

 

 8.5 

 

 

 6.9 

 

 

 5.8 

 

 

 6.9 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges and preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dividends and other, excluding bank deposits and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

payables to brokerage clients interest expense (2)

 

 

 8.5 

 

 

 8.0 

 

 

 9.5 

 

 

 7.8 

 

 

 6.7 

 

 

 9.1 



(1)

The ratios of earnings to fixed charges and earnings to fixed charges and preferred stock dividends and other are calculated in accordance with SEC requirements. For such purposes, “earnings” consist of earnings before taxes on earnings and fixed charges. “Fixed charges” consist of interest expense as listed above, and one-third of property, equipment and software rental expense, which is estimated to be representative of the interest factor.

(2)

Because interest expense incurred in connection with both bank deposits and payables to brokerage clients is completely offset by interest revenue on related investments and loans, the Company considers such interest to be an operating expense. Accordingly, the ratio of earnings to fixed charges, excluding bank deposits and payables to brokerage clients interest expense, and the ratio of earnings to fixed charges and preferred stock dividends and other, excluding bank deposits and payables to brokerage clients interest expense, reflect the elimination of such interest expense as a fixed charge.

(3)

The preferred stock dividend and other amounts represent the pre-tax earnings that would be required to pay the dividends on outstanding preferred stock and undistributed earnings and dividends allocated to non-vested restricted stock units.



 





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