EX-12.1 2 d241423dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of earnings to fixed charges

EXHIBIT 12.1

DAVITA INC.

RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose are defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period less pre-tax net income attributable to noncontrolling interests. Fixed charges include debt expense (interest expense, the amortization of deferred financing costs and the amortization of the cap premium), the estimated interest component of rent expense on operating leases, and capitalized interest.

 

     Nine months
ended
September 30,
2011
    Year ended December 31,  
       2010     2009     2008     2007     2006  
     (dollars in thousands)  

Earnings adjusted for fixed charges:

            

Income from continuing operations before income taxes

   $ 623,525      $ 743,990      $ 757,579      $ 656,720      $ 673,967      $ 514,492   

Add:

            

Debt expense

     179,340        181,607        185,755        224,716        257,147        276,703   

Interest portion of rent expense

     70,595        86,879        80,912        72,404        64,457        60,302   

Less: Noncontrolling interests

     (67,893     (79,406     (57,803     (47,331     (46,702     (39,888
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     182,042        189,080        208,864        249,789        274,902        297,117   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 805,567      $ 933,070      $ 966,443      $ 906,509      $ 948,869      $ 811,609   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

            

Debt expense

   $ 179,340      $ 181,607      $ 185,755      $ 224,716      $ 257,147      $ 276,703   

Interest portion of rent expense

     70,595        86,879        80,912        72,404        64,457        60,302   

Capitalized interest

     3,148        2,621        3,627        4,189        3,878        4,708   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 253,083      $ 271,107      $ 270,294      $ 301,309      $ 325,482      $ 341,713   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     3.18        3.44        3.58        3.01        2.92        2.38