EXHIBIT 12
PULTE HOMES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
RATIO OF EARNINGS TO FIXED CHARGES
| Years Ended December 31, | ||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Income from continuing operations before taxes | $ | (2,496,903 | ) | $ | 1,082,728 | $ | 2,277,014 | $ | 1,592,324 | $ | 994,008 | |||||||||
| Add: | ||||||||||||||||||||
| Fixed charges | 295,130 | 316,596 | 274,156 | 231,252 | 202,716 | |||||||||||||||
| Amortization of capitalized interest | 314,998 | 255,688 | 179,585 | 133,049 | 78,708 | |||||||||||||||
| Subtract: | ||||||||||||||||||||
| Capitalized interest | (240,000 | ) | (261,486 | ) | (185,792 | ) | (156,056 | ) | (136,308 | ) | ||||||||||
| Distributions in excess (less than) earnings of affiliates | 39,038 | 4,814 | 10,670 | (21,625 | ) | (36,186 | ) | |||||||||||||
| Income as adjusted | $ | (2,087,737 | ) | $ | 1,398,340 | $ | 2,555,633 | $ | 1,778,944 | $ | 1,102,938 | |||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest expensed and capitalized | $ | 260,348 | $ | 290,282 | $ | 250,026 | $ | 212,418 | $ | 186,339 | ||||||||||
| Portion of rents representative of interest factor | 23,336 | 25,889 | 24,130 | 18,834 | 16,377 | |||||||||||||||
Interest expense related to guaranteed debt of 50% or less owned affiliates(a) | 11,446 | 425 | — | — | — | |||||||||||||||
| Fixed charges | $ | 295,130 | $ | 316,596 | $ | 274,156 | $ | 231,252 | $ | 202,716 | ||||||||||
Ratio of earnings to fixed charges(b) | — | 4.42 | 9.32 | 7.69 | 5.44 | |||||||||||||||
| 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) | Includes imputed interest related to certain guaranteed joint venture debt for which we have made or expect to make cash expenditures. | |
| (b) | Earnings for year ended December 31, 2007 were inadequate to cover fixed charges. Additional earnings of $2.4 billion would have been necessary to bring the ratio to 1.0. |
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