M.D.C. (MDC) 10-K 2014 FY Annual report

Exhibit 12

M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
	Year Ended December 31,
	2014			2013			2012			2011			2010
	(Dollars in thousands)
Earnings	$	163,686		$	187,953		$	95,914		$	(62,329	)	$	(5,268	)
Fixed charges	$	68,287		$	63,775		$	45,200		$	65,439		$	75,440
Earnings to fixed charges	$	2.40		$	2.95		$	2.12		$	(0.95	)	$	(0.07	)
Earnings (Loss):
Income before income taxes	$	100,475		$	129,825		$	61,115		$	(107,472	)	$	(70,601	)
Add: fixed charges		68,287			63,775			45,200			65,439			75,440
Less: capitalized interest		(65,584	)		(59,908	)		(41,507	)		(41,448	)		(33,919	)
Add: amortization of previously capitalized interest		60,508			54,261			31,106			21,152			23,812
Total earnings	$	163,686		$	187,953		$	95,914		$	(62,329	)	$	(5,268	)
Fixed Charges:
Homebuilding and corporate interest expense(1)	$	685		$	1,726		$	808		$	20,842		$	38,157
Mortgage lending interest expense		200			282			607			442			466
Interest component of rent expense		1,818			1,859			2,278			2,707			2,898
Capitalized interest		65,584			59,908			41,507			41,448			33,919
Total fixed charges	$	68,287		$	63,775		$	45,200		$	65,439		$	75,440

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(1) Includes the amortization and expensing of debt expenses that were not capitalized during period

In computing the ratio of earnings to fixed charges, fixed charges consist of homebuilding and corporate interest expense which includes the amortization and expensing of debt expenses that were not capitalized during period, mortgage lending interest expense, interest component of rent expense, and capitalized interest. Earnings are computed by adding fixed charges (except capitalized interest) and amortization of previously capitalized interest during the period to (loss) earnings before income taxes. For the years ended December 31, 2011 and 2010, the Company generated losses which exceeded fixed charges of $127.8 million and $80.7 million, respectively.