EXHIBIT 12
PULTEGROUP, INC.
RATIO OF EARNINGS TO FIXED CHARGES
($000’s omitted)
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 689,758 | $ | 527,822 | $ | 183,554 | $ | (310,300 | ) | $ | (1,234,546 | ) | ||||||||
Fixed charges | 139,422 | 162,418 | 210,394 | 231,208 | 281,582 | |||||||||||||||
Amortization of capitalized interest | 194,728 | 255,065 | 224,291 | 189,382 | 180,918 | |||||||||||||||
Capitalized interest | (131,444 | ) | (154,107 | ) | (201,103 | ) | (221,071 | ) | (264,932 | ) | ||||||||||
Distributions in excess (less than) earnings of affiliates | (3,476 | ) | 767 | 3,324 | 3,628 | 2,601 | ||||||||||||||
Income as adjusted | $ | 888,988 | $ | 791,965 | $ | 420,460 | $ | (107,153 | ) | $ | (1,034,377 | ) | ||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 131,069 | $ | 154,819 | $ | 202,395 | $ | 222,383 | $ | 269,296 | ||||||||||
Portion of rents representative of interest factor | 8,353 | 7,599 | 7,999 | 8,825 | 12,286 | |||||||||||||||
Fixed charges | $ | 139,422 | $ | 162,418 | $ | 210,394 | $ | 231,208 | $ | 281,582 | ||||||||||
Ratio of earnings to fixed charges (a) | 6.4 | 4.9 | 2.0 | — | — |
Note: The ratios of earnings to fixed charges set forth above are computed on a consolidated basis. Fixed charges are comprised of interest incurred, which includes imputed interest associated with the guaranteed debt of our 50% or less owned affiliates, as well as a portion of rent expense, which represents the estimated interest factor and amortization of debt expense.
(a) | Earnings for years ended December 31, 2011and 2010 were inadequate to cover fixed charges. Additional earnings of $338.4 million, and $1.3 billion, respectively, would have been necessary to bring the ratio to 1.0. |