EXHIBIT 12
PULTE HOMES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
RATIO OF EARNINGS TO FIXED CHARGES
| Years Ended December 31, | ||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Income from continuing operations before taxes | $ | 1,082,728 | $ | 2,277,014 | $ | 1,592,324 | $ | 994,008 | $ | 722,686 | ||||||||||
| Add: | ||||||||||||||||||||
| Interest expensed and capitalized | 290,282 | 250,026 | 212,418 | 186,339 | 169,255 | |||||||||||||||
| Portion of rents representative of interest factor | 25,889 | 24,130 | 18,834 | 16,377 | 16,117 | |||||||||||||||
| Amortization of Capitalized Interest | 255,688 | 179,585 | 133,049 | 78,708 | 48,697 | |||||||||||||||
| Subtract: | ||||||||||||||||||||
| Capitalized Interest | (261,486 | ) | (185,792 | ) | (156,056 | ) | (136,308 | ) | (123,086 | ) | ||||||||||
| Distributions in excess (less than) earnings of affiliates | 4,814 | 10,670 | (21,625 | ) | (36,186 | ) | (7,716 | ) | ||||||||||||
| Income as adjusted | $ | 1,397,915 | $ | 2,555,633 | $ | 1,778,944 | $ | 1,102,938 | $ | 825,953 | ||||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest expensed and capitalized | 290,282 | 250,026 | 212,418 | 186,339 | 169,255 | |||||||||||||||
| Portion of rents representative of interest factor | 25,889 | 24,130 | 18,834 | 16,377 | 16,117 | |||||||||||||||
Interest expense related to guaranteed debt of 50% or less owned affiliates(a) | 425 | — | — | — | — | |||||||||||||||
| Fixed charges | $ | 316,596 | $ | 274,156 | $ | 231,252 | $ | 202,716 | $ | 185,372 | ||||||||||
| Ratio of earnings to fixed charges | 4.42 | 9.32 | 7.69 | 5.44 | 4.46 | |||||||||||||||
| Note: | The ratios of earnings to fixed charges set forth above are computed on a total enterprise basis, except for our discontinued thrift operations, Mexico homebuilding operations, and Argentina operations, which have been excluded. Fixed charges is 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) | In accordance with our guarantees of joint venture debt, imputed interest on expected cash outlays to be made by us, to maintain a certain ratio of value of collateral (generally land and improvements) as a specified percentage of the loan balance, has been reflected as a fixed charge in the ratios of earnings to fixed charges computation shown above. |
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