Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
Three months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
Year ended October 31, | January 31, | |||||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||
(Loss) earnings: | ||||||||||||||||||||||||
(Loss) income before income taxes | $ | 647,432 | $ | 806,110 | $ | 1,126,616 | $ | 70,680 | $ | (466,787 | ) | $ | (156,561 | ) | ||||||||||
Interest expense | 94,324 | 126,221 | 122,473 | 102,652 | 89,300 | 16,148 | ||||||||||||||||||
Rent expense | 2,417 | 3,923 | 4,377 | 4,252 | 4,070 | 763 | ||||||||||||||||||
Amortization | 1,085 | 1,079 | 1,096 | 1,102 | 1,380 | 282 | ||||||||||||||||||
$ | 745,258 | $ | 937,333 | $ | 1,254,562 | $ | 178,686 | $ | (372,037 | ) | $ | (139,368 | ) | |||||||||||
Fixed charges: | ||||||||||||||||||||||||
Homebuilding | ||||||||||||||||||||||||
Interest incurred | $ | 113,452 | $ | 115,439 | $ | 141,266 | $ | 136,758 | $ | 116,340 | $ | 28,285 | ||||||||||||
Rent expense | 2,417 | 3,923 | 4,377 | 4,252 | 4,070 | 763 | ||||||||||||||||||
Amortization | 1,085 | 1,079 | 1,096 | 1,102 | 1,380 | 282 | ||||||||||||||||||
$ | 116,954 | $ | 120,441 | $ | 146,739 | $ | 142,112 | $ | 121,790 | $ | 29,330 | |||||||||||||
Ratio | 6.37 | 7.78 | 8.55 | 1.26 | (1 | ) | (1 | ) | ||||||||||||||||
(1) | For the twelve-month period ended October 31, 2008 and the three-month period ended January 31, 2009 our earnings were not sufficient to cover fixed charges by approximately $493.8 million and $168.7 million, respectively. |