EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIOS
TOLL BROTHERS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
Three
Months
Year Ended October 31, Ended
------------------------------------------------------------ January 31,
1995 1996 1997 1998 1999 2000
-------- -------- -------- -------- -------- ------
Earnings:
Income before income taxes and extraordinary
loss and change in accounting ....................... $ 79,739 $ 85,793 $107,646 $134,293 $162,750 $35,328
Homebuilding:
Interest expense: .................................... 22,473 24,646 29,746 36,052 40,378 8,986
Rent expense ......................................... 93 151 193 293 425 120
Amortization ......................................... 801 705 667 610 618 158
Collateralized mortgage financing:
Interest expense ..................................... 376 300 233 184 119 23
Amortization ......................................... 29 -- -- -- -- --
-------- -------- -------- -------- -------- -------
$103,511 $111,595 $138,485 $171,432 $204,290 $44,615
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Fixed charges:
Homebuilding:
Interest incurred: ................................... $ 25,780 $ 27,695 $ 35,242 $ 38,331 $ 51,396 14,193
Rent expense ......................................... 93 151 193 293 425 120
Amortization ........................................... 801 705 667 610 618 158
Collateralized mortgage financing:
Interest incurred .................................... 376 300 233 184 119 23
Amortization ......................................... 29 -- -- -- -- --
-------- -------- -------- -------- -------- -------
$ 27,079 $ 28,851 $ 36,335 $ 39,418 $ 52,558 $14,494
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Ratio, including collateralized mortgage financing(1)... 3.82 3.87 3.81 4.35 3.89 3.08
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(1) For purposes of computing the ratio of earnings to fixed charges, earnings
consist of income before income taxes, extraordinary loss and change in
accounting plus interest expense and fixed charges except interest
incurred. Fixed charges consist of interest incurred (whether expensed or
capitalized), the portion of rent expense that is representative of the
interest factor, and amortization of debt discount and issuance costs.