| Six Months Ended June 30, 2015 | Year Ended December 31, 2014 (1) | Year Ended December 31, 2013 (1) | Year Ended December 31, 2012 (1) | Year Ended December 31, 2011 (1) | |||||||||||||||
| Income (loss) from continuing operations before cumulative effect of change in accounting principle | $ | 380,306 | $ | 668,516 | $ | 57,827 | $ | 250,431 | $ | 140,215 | |||||||||
| (Plus): | |||||||||||||||||||
| Equity in income of unconsolidated entities, net of distributions received | 22,791 | 71,781 | 74,575 | 11,170 | 618 | ||||||||||||||
| Amortization of capitalized interest (2) | 11,892 | 22,489 | 20,157 | 17,929 | 16,277 | ||||||||||||||
| Earnings before fixed charges | $ | 414,989 | $ | 762,786 | $ | 152,559 | $ | 279,530 | $ | 157,110 | |||||||||
| (Plus) Fixed charges: | |||||||||||||||||||
| Portion of rents representative of the interest factor | $ | 3,520 | $ | 7,504 | $ | 7,112 | $ | 6,873 | $ | 6,933 | |||||||||
| Interest expense | 90,164 | 180,618 | 172,402 | 136,920 | 167,814 | ||||||||||||||
| Interest capitalized | 38,830 | 69,961 | 66,838 | 49,556 | 33,863 | ||||||||||||||
| Preferred dividend | — | — | — | — | — | ||||||||||||||
| Total fixed charges (3) | $ | 132,514 | $ | 258,083 | $ | 246,352 | $ | 193,349 | $ | 208,610 | |||||||||
| (Less): | |||||||||||||||||||
| Interest capitalized | 38,830 | 69,961 | 66,838 | 49,556 | 33,863 | ||||||||||||||
| Preferred dividend | — | — | — | — | — | ||||||||||||||
| Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — | 14,132 | — | — | — | ||||||||||||||
| Earnings (4) | $ | 508,673 | $ | 936,776 | $ | 332,073 | $ | 423,323 | $ | 331,857 | |||||||||
| Ratio (4 divided by 3) | 3.84 | 3.63 | 1.35 | 2.19 | 1.59 | ||||||||||||||
| Six Months Ended June 30, 2015 | Year Ended December 31, 2014 (1) | Year Ended December 31, 2013 (1) | Year Ended December 31, 2012 (1) | Year Ended December 31, 2011 (1) | |||||||||||||||
| Income (loss) from continuing operations before cumulative effect of change in accounting principle | $ | 380,306 | $ | 668,516 | $ | 57,827 | $ | 250,431 | $ | 140,215 | |||||||||
| (Plus): | |||||||||||||||||||
| Equity in income of unconsolidated entities, net of distributions received | 22,791 | 71,781 | 74,575 | 11,170 | 618 | ||||||||||||||
| Amortization of capitalized interest (2) | 11,892 | 22,489 | 20,157 | 17,929 | 16,277 | ||||||||||||||
| Earnings before fixed charges | $ | 414,989 | $ | 762,786 | $ | 152,559 | $ | 279,530 | $ | 157,110 | |||||||||
| (Plus) Fixed charges: | |||||||||||||||||||
| Portion of rents representative of the interest factor | $ | 3,520 | $ | 7,504 | $ | 7,112 | $ | 6,873 | $ | 6,933 | |||||||||
| Interest expense | 90,164 | 180,618 | 172,402 | 136,920 | 167,814 | ||||||||||||||
| Interest capitalized | 38,830 | 69,961 | 66,838 | 49,556 | 33,863 | ||||||||||||||
| Total fixed charges (3) | $ | 132,514 | $ | 258,083 | $ | 246,352 | $ | 193,349 | $ | 208,610 | |||||||||
| (Less): | |||||||||||||||||||
| Interest capitalized | 38,830 | 69,961 | 66,838 | 49,556 | 33,863 | ||||||||||||||
| Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — | 14,132 | — | — | — | ||||||||||||||
| Earnings (4) | $ | 508,673 | $ | 936,776 | $ | 332,073 | $ | 423,323 | $ | 331,857 | |||||||||
| Ratio (4 divided by 3) | 3.84 | 3.63 | 1.35 | 2.19 | 1.59 | ||||||||||||||
| (1) | The results of operations for 2011 through 2014 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). |
