EX-12.1 2 a2013930-10kexhibit121.htm RATIO COMPUTATION 2013.9.30 - 10K Exhibit 12.1


Exhibit 12.1
D.R. HORTON, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


 
 
For the Fiscal Year Ended September 30,
 
 
2013
 
2012
 
2011
 
2010
 
2009 (1)
 
 
($ in millions)
Consolidated income (loss) before income taxes
 
$
657.8

 
$
242.9

 
$
12.1

 
$
99.5

 
$
(556.8
)
Noncontrolling interests in losses before income taxes of majority owned subsidiaries
    which have incurred losses
 

 

 

 
(0.2
)
 
(3.1
)
Amortization of capitalized interest
 
110.9

 
94.1

 
92.0

 
124.2

 
136.6

Interest expensed
 
11.7

 
31.5

 
57.0

 
94.4

 
110.3

Earnings (loss)
 
$
780.4

 
$
368.5

 
$
161.1

 
$
317.9

 
$
(313.0
)
Interest incurred
 
$
177.3

 
$
128.7

 
$
136.7

 
$
181.3

 
$
215.1

Fixed charges
 
$
177.3

 
$
128.7

 
$
136.7

 
$
181.3

 
$
215.1

Ratio of earnings to fixed charges
 
4.40

 
2.86

 
1.18

 
1.75

 

Coverage deficiency
 
 
 
 
 
 
 

 
$
528.1

 
 

(1)
On October 1, 2009, the Company adopted the FASB’s authoritative guidance for accounting for debt with conversion options, which specifies that issuers of such instruments should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. As a result, fiscal 2009 interest expense and interest incurred were increased by $4.5 million and $8.2 million, respectively, due to the retrospective application of the change in accounting for the Company’s 2% convertible senior notes issued in May 2009.