Attached files
| file | filename |
|---|---|
| EX-10.380 - EXHIBIT 10.380 - SCHWAB CHARLES CORP | schw-09302017xex10380.htm |
| EX-32.2 - EXHIBIT 32.2 - SCHWAB CHARLES CORP | schw-09302017xex322.htm |
| EX-32.1 - EXHIBIT 32.1 - SCHWAB CHARLES CORP | schw-09302017xex321.htm |
| EX-31.2 - EXHIBIT 31.2 - SCHWAB CHARLES CORP | schw-09302017xex312.htm |
| EX-31.1 - EXHIBIT 31.1 - SCHWAB CHARLES CORP | schw-09302017xex311.htm |
| EX-10.384 - EXHIBIT 10.384 - SCHWAB CHARLES CORP | schw-09302017xex10384.htm |
| EX-10.383 - EXHIBIT 10.383 - SCHWAB CHARLES CORP | schw-09302017xex10383.htm |
| EX-10.382 - EXHIBIT 10.382 - SCHWAB CHARLES CORP | schw-09302017xex10382.htm |
| EX-10.381 - EXHIBIT 10.381 - SCHWAB CHARLES CORP | schw-09302017xex10381.htm |
| EX-10.379 - EXHIBIT 10.379 - SCHWAB CHARLES CORP | schw-09302017xex10379.htm |
| EX-10.378 - EXHIBIT 10.378 - SCHWAB CHARLES CORP | schw-09302017xex10378.htm |
| 10-Q - 10-Q - SCHWAB CHARLES CORP | schw-09302017x10q.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)
Nine Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Earnings before taxes on earnings | $ | 2,697 | $ | 2,993 | $ | 2,279 | $ | 2,115 | $ | 1,705 | $ | 1,450 | ||||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Bank deposits | 98 | 37 | 29 | 30 | 31 | 42 | ||||||||||||||||||
Payables to brokerage clients | 11 | 3 | 2 | 2 | 3 | 3 | ||||||||||||||||||
Short-term borrowings | 11 | 9 | — | — | — | — | ||||||||||||||||||
Long-term debt | 89 | 104 | 92 | 73 | 69 | 103 | ||||||||||||||||||
Other | 14 | 18 | 9 | (3 | ) | 2 | 2 | |||||||||||||||||
Total | 223 | 171 | 132 | 102 | 105 | 150 | ||||||||||||||||||
Interest portion of rental expense | 73 | 88 | 77 | 71 | 69 | 68 | ||||||||||||||||||
Total fixed charges (A) | 296 | 259 | 209 | 173 | 174 | 218 | ||||||||||||||||||
Earnings before taxes on earnings and fixed charges (B) | $ | 2,993 | $ | 3,252 | $ | 2,488 | $ | 2,288 | $ | 1,879 | $ | 1,668 | ||||||||||||
Ratio of earnings to fixed charges (B) ÷ (A) (1) | 10.1 | 12.6 | 11.9 | 13.2 | 10.8 | 7.7 | ||||||||||||||||||
Ratio of earnings to fixed charges, excluding | ||||||||||||||||||||||||
bank deposits and payables to brokerage | ||||||||||||||||||||||||
clients interest expense (2) | 15.4 | 14.7 | 13.8 | 16.0 | 13.2 | 9.4 | ||||||||||||||||||
Total fixed charges | $ | 296 | $ | 259 | $ | 209 | $ | 173 | $ | 174 | $ | 218 | ||||||||||||
Preferred stock dividends and other (3) | 195 | 227 | 131 | 96 | 97 | 70 | ||||||||||||||||||
Total fixed charges and preferred stock dividends and other (C) | $ | 491 | $ | 486 | $ | 340 | $ | 269 | $ | 271 | $ | 288 | ||||||||||||
Ratio of earnings to fixed charges and preferred | ||||||||||||||||||||||||
stock dividends and other (B) ÷ (C) (1) | 6.1 | 6.7 | 7.3 | 8.5 | 6.9 | 5.8 | ||||||||||||||||||
Ratio of earnings to fixed charges and preferred stock | ||||||||||||||||||||||||
dividends and other, excluding bank deposits and | ||||||||||||||||||||||||
payables to brokerage clients interest expense (2) | 7.5 | 7.2 | 8.0 | 9.5 | 7.8 | 6.7 | ||||||||||||||||||
(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.