Exhibit 12
Calculation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)
TMHC | Combined (1) | Predecessor | ||||||||||||||||||||||
Six Months | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Income/(Loss) before income taxes and minority interest | 134,037 | 97,936 | 170,551 | 101,699 | 88,724 | (36,220 | ) | |||||||||||||||||
Income from equity method investees | (10,741 | ) | (37,563 | ) | (22,964 | ) | (8,050 | ) | (5,319 | ) | (347 | ) | ||||||||||||
(Income)/Loss from non-controlling interests - joint ventures | (339 | ) | 131 | (28 | ) | (5,300 | ) | (3,235 | ) | (5,138 | ) | |||||||||||||
Income from non-controlling interests - Principal Equityholders | (70,708 | ) | (49,579 | ) | — | — | — | — | ||||||||||||||||
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Total earnings (loss) | 52,249 | 10,925 | 147,559 | 88,349 | 80,170 | (41,705 | ) | |||||||||||||||||
Add/(deduct): | ||||||||||||||||||||||||
+ Fixed charges | 50,367 | 82,441 | 65,097 | 61,606 | 86,640 | 88,855 | ||||||||||||||||||
+ Amortization of capitalized interest | 28,180 | 50,971 | 30,316 | 29,536 | 37,370 | 50,354 | ||||||||||||||||||
+ Distributed income of equity method investees | 18,861 | 30,136 | 36,746 | 15,287 | 4,558 | 2,405 | ||||||||||||||||||
- Interest capitalized | (47,234 | ) | (76,040 | ) | (61,392 | ) | (37,605 | ) | (37,282 | ) | (53,230 | ) | ||||||||||||
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Earnings available for fixed charges | 102,423 | 98,433 | 218,326 | 157,173 | 171,456 | 46,679 | ||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest and other financial charges expensed and capitalized | 48,133 | 79,241 | 62,468 | 60,696 | 85,635 | 87,651 | ||||||||||||||||||
Bond issue costs amortized | 1,624 | 2,081 | 1,752 | — | — | — | ||||||||||||||||||
Interest factor attributed to rentals | 610 | 1,119 | 877 | 910 | 1,005 | 1,204 | ||||||||||||||||||
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Fixed charges | 50,367 | 82,441 | 65,097 | 61,606 | 86,640 | 88,855 | ||||||||||||||||||
Ratio of earnings to fixed charges(2) | 2.0 | 1.2 | 3.4 | 2.6 | 2.0 | $ | (42,176 | ) |
(1) | Amounts are arithmetically combinded as a portion of the year was “Predecessor” and the other portion of the year was TMHC. |
(2) | For periods in which earnings before fixed charges were insufficient to cover fixed charges, the dollar amount of coverage deficiency, instead of the ratio, is disclosed. |