Exhibit 12.1
Kindred Healthcare, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
(In thousands, except statistics)
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| | 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%. |