eTrade 2009 Annual Report Download - page 250

Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
(in thousands, except ratio of earnings (loss) to fixed charges)
The ratio of earnings (loss) to fixed charges is computed by dividing fixed charges into income (loss) before income taxes,
discontinued operations and the cumulative effect of accounting changes less equity in the income (loss) of investments plus fixed
charges less the preference securities dividend requirement of consolidated subsidiaries. Fixed charges include, as applicable interest
expense, amortization of debt issuance costs, the estimated interest component of rent expense (calculated as one-third of net rent
expense) and the preference securities dividend requirement of consolidated subsidiaries.
For the Year Ended December 31,
2009 2008 2007 2006 2005
Fixed char
g
es:
Interest expense $ 852,766 $ 1,557,654 $ 2,102,446 $1,508,854 $ 846,681
Amortization of debt issue expense 1,878 6,440 9,492 8,438 2,840
Estimated interest portion within rental expense
8,316 8,968 8,912 8,241 5,549
Preference securities dividend requirements of
consolidated subsidiaries
—
—
—
—
—
Total fixed charges $ 862,960 $ 1,573,062 $ 2,120,850 $1,525,533 $ 855,070
Earnin
g
s:
Income (loss) before income taxes, discontinued
operations and cumulative effect of accounting
change less equity in income (loss) of
investments
$(1,826,815) $(1,297,381) $(2,182,951) $ 929,869 $ 642,364
Fixed charges 862,960 1,573,062 2,120,850 1,525,533 855,070
Less:
Preference securities dividend requirements of
consolidated subsidiaries
—
—
—
—
—
Earnings (loss) $ (963,855) $ 275,681 $ (62,101) $2,455,402 $1,497,434
Ratio of earnings (loss) to fixed charges (1.12) 0.18 (0.03) 1.61 1.75
Excess (deficiency) of earnings (loss) to fixed
charges
$(1,826,815) $(1,297,381) $(2,182,951) $ 929,869 $ 642,364