Exhibit 12.1
KB Home
Computation of Ratios of Earnings to Fixed Charges
(In thousands, except ratios)
| Six Months Ended May 31, | Years Ended November 30, | |||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (a) | $ | (182,930 | ) | $ | (76,368 | ) | $ | (311,184 | ) | $ | (967,931 | ) | $ | (1,460,770 | ) | $ | 571,847 | |||||||
Add: | ||||||||||||||||||||||||
Interest incurred | 55,399 | 122,230 | 119,602 | 156,402 | 199,550 | 237,801 | ||||||||||||||||||
Amortization of premiums and discounts related to debt | 1,108 | 2,149 | 1,586 | 2,062 | 2,478 | 2,441 | ||||||||||||||||||
Portion of rent expense considered to be interest | 1,771 | 4,658 | 7,507 | 16,503 | 28,464 | 27,657 | ||||||||||||||||||
Amortization of previously capitalized interest | 31,013 | 95,236 | 138,179 | 129,901 | 171,496 | 143,249 | ||||||||||||||||||
Distribution of earnings from unconsolidated joint ventures, net of equity in income (loss) | 61,729 | 19,638 | 43,262 | 157,393 | 171,576 | 15,164 | ||||||||||||||||||
Deduct: | ||||||||||||||||||||||||
Interest Capitalized | (30,839 | ) | (53,923 | ) | (67,839 | ) | (143,436 | ) | (186,560 | ) | (221,074 | ) | ||||||||||||
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Income (loss) as adjusted | $ | (62,749 | ) | $ | 113,620 | $ | (68,887 | ) | $ | (649,106 | ) | $ | (1,073,766 | ) | $ | 777,085 | ||||||||
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FIXED CHARGES | ||||||||||||||||||||||||
Interest incurred | $ | 55,399 | $ | 122,230 | $ | 119,602 | $ | 156,402 | $ | 199,550 | $ | 237,801 | ||||||||||||
Amortization of premiums and discounts related to debt | 1,108 | 2,149 | 1,586 | 2,062 | 2,478 | 2,441 | ||||||||||||||||||
Portion of rent expense considered to be interest | 1,771 | 4,658 | 7,507 | 16,503 | 28,464 | 27,657 | ||||||||||||||||||
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| $ | 58,278 | $ | 129,037 | $ | 128,695 | $ | 174,967 | $ | 230,492 | $ | 267,899 | |||||||||||||
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Ratio of earnings to fixed charges | — | — | — | — | — | 2.90 | ||||||||||||||||||
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Coverage deficiency (b) | $ | (121,027 | ) | $ | (15,417 | ) | $ | (197,582 | ) | $ | (824,073 | ) | $ | (1,304,258 | ) | $ | — | |||||||
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| (a) | The ratio of earnings to fixed charges are computed on a consolidated basis excluding the French discontinued operations for the years ended November 30, 2007 and 2006. |
| (b) | Earnings for the years ended November 30, 2007, 2008, 2009 and 2010 were insufficient to cover fixed charges for the respective period by $1.30 billion, $824.1 million, $197.6 million and $15.4 million, and earnings for the six months ended May 31, 2011 were insufficient to cover fixed charges for the period by $121.0 million. |
