| Nine Months Ended September 30, 2014 | Year Ended December 31, 2013 (1) | Year Ended December 31, 2012 (1) | Year Ended December 31, 2011 (1) | Year Ended December 31, 2010 (1) | |||||||||||||||
| Income (loss) from continuing operations before cumulative effect of change in accounting principle | $ | 516,622 | $ | 57,827 | $ | 250,431 | $ | 140,215 | $ | 81,071 | |||||||||
| (Plus): | |||||||||||||||||||
| Equity in income of unconsolidated entities, net of distributions received | 60,912 | 48,004 | 11,170 | 618 | 4,856 | ||||||||||||||
| Amortization of capitalized interest (2) | 16,475 | 20,157 | 17,929 | 16,277 | 15,149 | ||||||||||||||
| Earnings before fixed charges | $ | 594,009 | $ | 125,988 | $ | 279,530 | $ | 157,110 | $ | 101,076 | |||||||||
| (Plus) Fixed charges: | |||||||||||||||||||
| Portion of rents representative of the interest factor | $ | 5,666 | $ | 7,112 | $ | 6,873 | $ | 6,933 | $ | 11,785 | |||||||||
| Interest expense | 132,631 | 172,402 | 136,920 | 167,814 | 169,997 | ||||||||||||||
| Interest capitalized | 54,294 | 66,838 | 49,556 | 33,863 | 33,393 | ||||||||||||||
| Preferred dividend | — | — | — | — | — | ||||||||||||||
| Total fixed charges (3) | $ | 192,591 | $ | 246,352 | $ | 193,349 | $ | 208,610 | $ | 215,175 | |||||||||
| (Less): | |||||||||||||||||||
| Interest capitalized | 54,294 | 66,838 | 49,556 | 33,863 | 33,393 | ||||||||||||||
| Preferred dividend | — | — | — | — | — | ||||||||||||||
| Earnings (4) | $ | 732,306 | $ | 305,502 | $ | 423,323 | $ | 331,857 | $ | 282,858 | |||||||||
| Ratio (4 divided by 3) | 3.80 | 1.24 | 2.19 | 1.59 | 1.31 | ||||||||||||||
| Nine Months Ended September 30, 2014 | Year Ended December 31, 2013 (1) | Year Ended December 31, 2012 (1) | Year Ended December 31, 2011 (1) | Year Ended December 31, 2010 (1) | |||||||||||||||
| Income (loss) from continuing operations before cumulative effect of change in accounting principle | $ | 516,622 | $ | 57,827 | $ | 250,431 | $ | 140,215 | $ | 81,071 | |||||||||
| (Plus): | |||||||||||||||||||
| Equity in income of unconsolidated entities, net of distributions received | 60,912 | 48,004 | 11,170 | 618 | 4,856 | ||||||||||||||
| Amortization of capitalized interest (2) | 16,475 | 20,157 | 17,929 | 16,277 | 15,149 | ||||||||||||||
| Earnings before fixed charges | $ | 594,009 | $ | 125,988 | $ | 279,530 | $ | 157,110 | $ | 101,076 | |||||||||
| (Plus) Fixed charges: | |||||||||||||||||||
| Portion of rents representative of the interest factor | $ | 5,666 | $ | 7,112 | $ | 6,873 | $ | 6,933 | $ | 11,785 | |||||||||
| Interest expense | 132,631 | 172,402 | 136,920 | 167,814 | 169,997 | ||||||||||||||
| Interest capitalized | 54,294 | 66,838 | 49,556 | 33,863 | 33,393 | ||||||||||||||
| Total fixed charges (3) | $ | 192,591 | $ | 246,352 | $ | 193,349 | $ | 208,610 | $ | 215,175 | |||||||||
| (Less): | |||||||||||||||||||
| Interest capitalized | 54,294 | 66,838 | 49,556 | 33,863 | 33,393 | ||||||||||||||
| Earnings (4) | $ | 732,306 | $ | 305,502 | $ | 423,323 | $ | 331,857 | $ | 282,858 | |||||||||
| Ratio (4 divided by 3) | 3.80 | 1.24 | 2.19 | 1.59 | 1.31 | ||||||||||||||
| (1) | The results of operations for 2010 through 2013 have been adjusted to remove the Company's earnings classified as discontinued operations. |
| (2) | Represents an estimate of capitalized interest costs based on the Company’s established depreciation policy and an analysis of interest costs capitalized since 1998 (the year in which AvalonBay was formed). |
