Exhibit 12.1
DDR Corp.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands)
| Three Months Ended | ||||||||||||||||||||||||||||
| Year Ended December 31, | March 31, | |||||||||||||||||||||||||||
| 2007(a) | 2008 (a) | 2009 | 2010 | 2011 | 2011 | 2012 | ||||||||||||||||||||||
Pretax income (loss) from continuing operations | $ | 215,618 | $ | (55,600 | ) | $ | (222,597 | ) | $ | (114,780 | ) | $ | (34,459 | ) | $ | 36,790 | $ | (11,122 | ) | |||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense including amortization of deferred costs and capitalized interest | $ | 307,633 | $ | 300,679 | $ | 266,843 | $ | 248,586 | $ | 249,907 | $ | 63,358 | $ | 60,000 | ||||||||||||||
Appropriate portion of rentals representative of the interest factor | $ | 1,329 | $ | 1,175 | $ | 1,589 | $ | 1,610 | $ | 1,407 | $ | 343 | $ | 341 | ||||||||||||||
Preferred Dividends on consolidated subsidiaries | $ | 9,690 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
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Total fixed charges | $ | 318,652 | $ | 301,854 | $ | 268,432 | $ | 250,196 | $ | 251,314 | $ | 63,701 | $ | 60,341 | ||||||||||||||
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Capitalized interest during the period | $ | (28,003 | ) | $ | (41,062 | ) | $ | (21,814 | ) | $ | (12,232 | ) | $ | (12,693 | ) | $ | (3,024 | ) | $ | (3,114 | ) | |||||||
Preferred Dividends on consolidated subsidiaries | $ | (9,690 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Amortization of capitalized interest during the period | $ | 5,351 | $ | 6,720 | $ | 7,447 | $ | 7,855 | $ | 8,278 | $ | 1,989 | $ | 2,095 | ||||||||||||||
Equity Company Adjustments | $ | (43,229 | ) | $ | (17,719 | ) | $ | 9,733 | $ | (5,600 | ) | $ | (13,734 | ) | $ | (1,974 | ) | $ | (8,248 | ) | ||||||||
Equity Company Adjustments Distributed Income | $ | 43,229 | $ | 17,719 | $ | 10,889 | $ | 7,334 | $ | 9,424 | $ | 803 | $ | 1,658 | ||||||||||||||
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Earnings before income taxes and fixed charges | $ | 501,928 | $ | 211,912 | $ | 52,090 | $ | 132,773 | $ | 208,130 | $ | 98,285 | $ | 41,610 | ||||||||||||||
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Ratio of earnings to fixed charges | 1.58 | (b | ) | (c | ) | (d | ) | (e | ) | 1.54 | (f | ) | ||||||||||||||||
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| (a) | These periods have been adjusted to reflect the retrospective application of ASC 470-02, previously referred to as FSP APB 14-1, for interest expense related to our convertible debt. |
| (b) | Due to the pretax loss from continuing operations for the year ended December 31, 2008, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $89.9 million to achieve a coverage of 1:1 for the year ended December 31, 2008. |
The pretax loss from continuing operations for the year ended December 31, 2008, includes consolidated impairment charges of $17.7 million and impairment charges of joint venture investments of $107.0 million, which together aggregate $124.7 million.
| (c) | Due to the pretax loss from continuing operations for the year ended December 31, 2009, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $216.3 million to achieve a coverage of 1:1 for the year ended December 31, 2009. |
The pretax loss from continuing operations for the year ended December 31, 2009 includes consolidated impairment charges of $12.7 million, impairment charges of joint venture investments of $184.6 million and losses on equity derivative instruments of $199.8 million, which together aggregate $397.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2011, as amended.
| (d) | Due to the pretax loss from continuing operations for the year ended December 31, 2010, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $117.4 million to achieve a coverage of 1:1 for the year ended December 31, 2010. |
The pretax loss from continuing operations for the year ended December 31, 2010 includes consolidated impairment charges of $84.9 million and losses on equity derivative instruments of $40.2 million, which together aggregate $125.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2011, as amended.
| (e) | Due to the pretax loss from continuing operations for the year ended December 31, 2011, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $43.2 million to achieve a coverage of 1:1 for the year ended December 31, 2011. |
The pretax loss from continuing operations for the year ended December 31, 2011 includes consolidated impairment charges of $101.8 million and impairment charges of joint venture investments of $2.9 million, which together aggregate $104.7 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2011, as amended.
| (f) | Due to the pretax loss from continuing operations for the three months ended March 31, 2012, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $18.7 million to achieve a coverage of 1:1 for the three months ended March 31, 2012. |
The pretax loss from continuing operations for the three months ended March 31, 2012 includes consolidated impairment charges of $13.5 million and impairment charges of joint venture investments of $0.6 million, which together aggregate $14.1 million, that are discussed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2012.
