Taubman Centers (TCO) 10-K 2014 FY Annual report

						Exhibit 12
		TAUBMAN CENTERS, INC.
		Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends
		(in thousands, except ratios)
			Year Ended December 31
			2014			2013			2012			2011			2010
		Income before income tax expense, equity in income of Unconsolidated Joint Ventures, and gain on dispositions, net of tax (1)	$	111,833		$	140,312		$	114,287		$	95,945		$	77,928
		Add back:
		Fixed charges	123,223			152,438			152,517			127,128			139,410
		Amortization of previously capitalized interest	3,121			4,438			4,427			4,401			4,411
		Distributed income of Unconsolidated Joint Ventures	62,002			49,389			48,494			46,064			45,412
		Deduct:
		Capitalized interest	(27,255		)	(16,385		)	(3,594		)	(422		)	(319		)
		Preferred distributions (2)										372			(2,460		)
		Earnings available for fixed charges and preferred dividends	$	272,924		$	330,192		$	316,131		$	273,488		$	264,382
		Fixed charges:
		Interest expense	$	90,803		$	130,023		$	142,616		$	122,277		$	132,362
		Capitalized interest	27,255			16,385			3,594			422			319
		Interest portion of rent expense	5,165			6,030			6,307			4,801			4,269
		Preferred distributions (2)										(372		)	2,460
		Total fixed charges	$	123,223		$	152,438		$	152,517		$	127,128		$	139,410
		Preferred dividends (3)	23,138			20,933			21,051			14,634			14,634
		Total fixed charges and preferred dividends	$	146,361		$	173,371		$	173,568		$	141,762		$	154,044
		Ratio of earnings to fixed charges and preferred dividends (1)	1.9			1.9			1.8			1.9			1.7
(1	)	In 2014, the Company early adopted Accounting Standards Update (ASU) No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". The operations of the centers sold to Starwood and the gain on disposition are included in continuing operations pursuant to the application of ASU Update 2014-08. In 2014, the gain on dispositions, net of tax, of $1.1 billion, which includes the gain on the sale of seven centers to Starwood and the gain on dispositions of interests in International Plaza, Arizona Mills, and land in Syosset, New York related to the former Oyster Bay project, has been excluded from earnings for purposes of calculating the ratio of earnings to fixed charges and preferred dividends. In 2011, the Company disposed of The Pier Shops at Caesars and Regency Square. These centers are reported separately as discontinued operations in the Consolidated Financial Statements in 2011. See "Note 2- Acquisitions, Dispositions, and Developments" to the Consolidated Financial Statements for further discussion of our discontinued operations. All reported periods of the calculation of the ratio of earnings to fixed charges exclude discontinued operations.
(2	)	In October 2011, the Company redeemed the Operating Partnership's 8.2% Series F Preferred Equity for $27 million, which represented a $2.2 million discount from the book value.
(3	)	In September 2012, the Company redeemed its 8% Series G Preferred Stock and its 7.625% Series H Preferred Stock. As a result of these redemptions, the Company recognized a charge of $6.4 million, which represents the difference between the carrying values and the redemption prices of the Series G & H Preferred Stock. This charge is included in preferred dividends for the year ended December 31, 2012.