EXHIBIT 12.1
KB HOME | ||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||
(In Thousands, Except Ratios) | ||||||||||||||||||||
Years Ended November 30, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Income (loss) from operations before income taxes | $ | 38,363 | $ | (79,053 | ) | $ | (181,168 | ) | $ | (76,368 | ) | $ | (311,184 | ) | ||||||
Add: | ||||||||||||||||||||
Interest incurred | 149,101 | 132,657 | 112,037 | 122,230 | 119,602 | |||||||||||||||
Amortization of premiums and discounts related to debt | 5,347 | 3,016 | 2,150 | 2,149 | 1,586 | |||||||||||||||
Portion of rent expense considered to be interest | 3,204 | 3,096 | 3,517 | 4,658 | 7,507 | |||||||||||||||
Amortization of previously capitalized interest | 87,414 | 78,630 | 79,338 | 95,236 | 138,179 | |||||||||||||||
Distribution of earnings from unconsolidated joint ventures, net of equity in income (loss) | 2,882 | 1,519 | 45,256 | 19,638 | 43,262 | |||||||||||||||
Deduct: | ||||||||||||||||||||
Interest capitalized | (86,411 | ) | (62,853 | ) | (62,833 | ) | (53,923 | ) | (67,839 | ) | ||||||||||
Income (loss) as adjusted | $ | 199,900 | $ | 77,012 | $ | (1,703 | ) | $ | 113,620 | $ | (68,887 | ) | ||||||||
Fixed charges | ||||||||||||||||||||
Interest incurred | $ | 149,101 | $ | 132,657 | $ | 112,037 | $ | 122,230 | $ | 119,602 | ||||||||||
Amortization of premiums and discounts related to debt | 5,347 | 3,016 | 2,150 | 2,149 | 1,586 | |||||||||||||||
Portion of rent expense considered to be interest | 3,204 | 3,096 | 3,517 | 4,658 | 7,507 | |||||||||||||||
$ | 157,652 | $ | 138,769 | $ | 117,704 | $ | 129,037 | $ | 128,695 | |||||||||||
Ratio of earnings to fixed charges | 1.27 | x | — | — | — | — | ||||||||||||||
Coverage deficiency (a) | $ | — | $ | (61,757 | ) | $ | (119,407 | ) | $ | (15,417 | ) | $ | (197,582 | ) | ||||||
The ratios of earnings to fixed charges are computed on a consolidated basis.
(a) | Earnings for the years ended November 30, 2012, 2011, 2010 and 2009 were insufficient to cover fixed charges for the period by $61.8 million, $119.4 million, $15.4 million and $197.6 million, respectively. |