Exhibit 12.1
Kindred Healthcare, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
(In thousands, except statistics)
Year Ended December 31, | Six Months ended June 30, 2015 | |||||||||||||||||||||||
| 2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||||||
COMPUTATION OF FIXED CHARGES: | ||||||||||||||||||||||||
Interest expensed and capitalized in continuing operations, including amortization of debt discounts and fees | $ | 8,270 | $ | 82,355 | $ | 110,235 | $ | 108,082 | $ | 168,787 | $ | 119,882 | ||||||||||||
Interest expensed and capitalized in discontinued operations, including amortization of debt discounts and fees | 105 | 78 | 72 | 52 | 18 | 1 | ||||||||||||||||||
Interest component of rental expense(1) | 124,169 | 137,715 | 148,086 | 141,806 | 132,049 | 64,400 | ||||||||||||||||||
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Total fixed charges | $ | 132,544 | $ | 220,148 | $ | 258,393 | $ | 249,940 | $ | 300,854 | $ | 184,283 | ||||||||||||
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COMPUTATION OF EARNINGS: | ||||||||||||||||||||||||
Pretax income (loss) from continuing operations before adjustment for noncontrolling interest in consolidated subsidiaries and income or loss from equity investees | $ | 24,409 | $ | (86,367 | ) | $ | (17,808 | ) | $ | (52,622 | ) | $ | 4,253 | $ | (105,588 | ) | ||||||||
Fixed charges | 132,544 | 220,148 | 258,393 | 249,940 | 300,854 | 184,283 | ||||||||||||||||||
Distributed income of equity investees | 700 | 2,865 | 1,917 | 1,580 | 272 | 2,995 | ||||||||||||||||||
Amortization of capitalized interest, less interest capitalized | (1,015 | ) | (1,241 | ) | (2,104 | ) | 87 | 79 | (91 | ) | ||||||||||||||
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| $ | 156,638 | $ | 135,405 | $ | 240,398 | $ | 198,985 | $ | 305,458 | $ | 81,599 | |||||||||||||
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RATIO OF EARNINGS TO FIXED CHARGES | 1.18x | 0.62x | 0.93x | 0.80x | 1.02x | 0.44x | ||||||||||||||||||
| (1) | Management has estimated the interest component of rental expense to approximate 33%. |