EX-12.1 2 d336680dex121.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.

 

    Three  months
ended
March 31,
2012
    Year ended December 31,  
      2011     2010     2009     2008     2007  
    (dollars in thousands)  

Earnings adjusted for fixed charges:

           

Income from continuing operations before income taxes

  $ 260,378      $ 892,674      $ 743,990      $ 757,579      $ 656,720      $ 673,967   

Add:

           

Debt expense

    61,381        241,090        181,607        185,755        224,716        257,147   

Interest portion of rent expense

    26,211        96,205        86,879        80,912        72,404        64,457   

Less: Noncontrolling interests

    (24,883     (96,049     (79,406     (57,803     (47,331     (46,702
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    62,709        241,246        189,080        208,864        249,789        274,902   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 323,087      $ 1,133,920      $ 933,070      $ 966,443      $ 906,509      $ 948,869   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

           

Debt expense

  $ 61,381      $ 241,090      $ 181,607      $ 185,755      $ 224,716      $ 257,147   

Interest portion of rent expense

    26,211        96,205        86,879        80,912        72,404        64,457   

Capitalized interest

    2,144        4,887        2,621        3,627        4,189        3,878   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 89,736      $ 342,182      $ 271,107      $ 270,294      $ 301,309      $ 325,482   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

    3.60        3.31        3.44        3.58        3.01        2.92