Exhibit 12.1
DDR Corp.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands)
Nine Months Ended | ||||||||||||||||||||||||||||
Year Ended December 31, | September 30, | |||||||||||||||||||||||||||
2008(a) | 2009 | 2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||||||||
Pretax (loss) income from continuing operations | $ | (51,052 | ) | $ | (217,009 | ) | $ | (112,993 | ) | $ | 218 | $ | (7,753 | ) | $ | 29,075 | $ | (11,725 | ) | |||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense including amortization of deferred costs and capitalized interest | $ | 300,679 | $ | 266,843 | $ | 248,586 | $ | 249,907 | $ | 236,716 | $ | 177,107 | $ | 176,367 | ||||||||||||||
Appropriate portion of rentals representative of the interest factor | 1,175 | 1,589 | 1,610 | 1,407 | 1,405 | 1,049 | 990 | |||||||||||||||||||||
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Total fixed charges | $ | 301,854 | $ | 268,432 | $ | 250,196 | $ | 251,314 | $ | 238,121 | $ | 178,156 | $ | 177,357 | ||||||||||||||
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Capitalized interest during the period | $ | (41,062 | ) | $ | (21,814 | ) | $ | (12,232 | ) | $ | (12,693 | ) | $ | (13,327 | ) | $ | (9,942 | ) | $ | (6,768 | ) | |||||||
Amortization of capitalized interest during the period | 6,720 | 7,447 | 7,855 | 8,278 | 8,722 | 6,458 | 6,711 | |||||||||||||||||||||
Equity Company Adjustments | (17,719 | ) | 9,733 | (5,600 | ) | (13,734 | ) | (35,250 | ) | (16,966 | ) | (5,543 | ) | |||||||||||||||
Equity Company Adjustments Distributed Income | 17,719 | 10,889 | 7,334 | 9,424 | 13,165 | 9,391 | 10,533 | |||||||||||||||||||||
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Earnings before income taxes and fixed charges | $ | 216,460 | $ | 57,678 | $ | 134,560 | $ | 242,807 | $ | 203,678 | $ | 196,172 | $ | 170,565 | ||||||||||||||
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Ratio of earnings to fixed charges | (b) | (c) | (d) | (e) | (f) | 1.1 | (g) | |||||||||||||||||||||
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(a) | This period has been adjusted to reflect the retrospective application of ASC 470-20, 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 $85.4 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the year ended December 31, 2008, includes consolidated impairment charges of $16.0 million and impairment charges of joint venture investments of $107.0 million, which together aggregate $123.0 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 $210.8 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the year ended December 31, 2009 includes consolidated impairment charges of $12.2 million, impairment charges of joint venture investments of $184.6 million and losses on equity derivative instruments of $199.8 million, which together aggregate $396.6 million.
(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 $115.6 million to achieve a coverage of 1:1. |
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, 2012, as amended.
(e) | For the year ended December 31, 2011, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $8.5 million to achieve a coverage of 1:1. |
The pretax income from continuing operations for the year ended December 31, 2011 includes consolidated impairment charges of $67.9 million and impairment charges of joint venture investments of $2.9 million, which together aggregate $70.8 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2012, as amended.
(f) | Due to the pretax loss from continuing operations for the year ended December 31, 2012, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $34.4 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the year ended December 31, 2012 includes consolidated impairment charges of $105.4 million and impairment charges of joint venture investments of $26.7 million, which together aggregate $132.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2012, as amended.
(g) | Due to the pretax loss from continuing operations for the nine months ended September 30, 2013, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $6.8 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the nine months ended September 30, 2013 includes consolidated impairment charges of $54.1 million, that are discussed in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2013.