EX-12.1 5 forms-3exhibit121.htm EXHIBIT 12.1 Form S-3 Exhibit 12.1


 
 
 
 
 
Exhibit 12.1
Forest City Enterprises, Inc.
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
(dollars in thousands)
 
 
 
Nine Months Ended
 
Eleven Months Ended
 
Fiscal Years Ended January 31,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
December 31, 2013
 
2013
 
2012
 
2011
 
2010
 
Earnings (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations before income taxes (excluding equity in earnings of unconsolidated entities and noncontrolling interest adjustment)
$
(224,450
)
 
$
(147,488
)
 
$
(79,747
)
 
$
(117,386
)
 
$
202,938

 
$
8,765

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest incurred, net of capitalized interest
184,455

 
297,057

 
276,491

 
263,974

 
321,170

 
352,454

 
 
 
Amortization of loan procurement costs
5,967

 
8,375

 
10,966

 
10,765

 
10,252

 
12,193

 
 
 
Previously capitalized interest amortized into earnings
10,074

 
12,852

 
12,234

 
11,883

 
16,469

 
14,884

 
 
 
Cash distributions from unconsolidated entities
59,217

 
64,346

 
261,344

 
97,048

 
105,195

 
93,968

 
 
 
Portion of rents representative of interest factor
2,394

 
2,772

 
5,136

 
4,725

 
8,017

 
11,097

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings, as adjusted
$
37,657

 
$
237,914

 
$
486,424

 
$
271,009

 
$
664,041

 
$
493,361

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed
$
184,455

 
$
297,057

 
$
276,491

 
$
263,974

 
$
321,170

 
$
352,454

 
 
 
Interest capitalized
16,559

 
16,693

 
96,094

 
193,448

 
172,664

 
112,887

 
 
 
Amortization of loan procurement costs
5,967

 
8,375

 
10,966

 
10,765

 
10,252

 
12,193

 
 
 
Portion of rents representative of interest factor
2,394

 
2,772

 
5,136

 
4,725

 
8,017

 
11,097

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
209,375

 
$
324,897

 
$
388,687

 
$
472,912

 
$
512,103

 
$
488,631

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Dividend Requirements
-

 
302

 
21,334

 
25,156

 
19,287

 
-

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Fixed Charges and Preferred Dividends
$
209,375

 
$
325,199

 
$
410,021

 
$
498,068

 
$
531,390

 
$
488,631

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1)(2)
(3) 

 
(4) 

 
1.25

 
(5) 

 
1.30

 
1.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred dividends (1)(2)
(3) 

 
(4) 

 
1.19

 
(5) 

 
1.25

 
1.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Included in earnings from continuing operations are non-cash charges related to depreciation and amortization of $169.8 million, $273.1 million, $212.3 million, $192.0 million, $209.9 million and $232.2 million for the nine months ended September 30, 2014, the eleven months ended December 31, 2013 and the fiscal years ending January 31, 2013, 2012, 2011 and 2010, respectively. Depreciation and amortization reduce earnings from continuing operations, but does not impact our ability to cover our fixed charges.
(2)
Included in earnings from continuing operations are non-cash charges related to impairment of real estate of $130.8 million, $421.4 million, $46.5 million, $115.9 million, $4.8 million and $5.4 million for the nine months ended September 30, 2014, the eleven months ended December 31, 2013 and the fiscal years ending January 31, 2013, 2012, 2011 and 2010, respectively. Impairment of real estate reduces earnings from continuing operations, but does not impact our ability to cover our fixed charges.
(3)
For the nine months ended September 30, 2014 the ratios were deficient of achieving a 1:1 ratio by $171.7 million for the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred dividends.
(4)
For the 11 months ended December 31, 2013 the ratios were deficient of achieving a 1:1 ratio by $87.0 million and $87.3 million for the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred dividends, respectively.
(5)
For the fiscal year ended January 31, 2012, the ratios were deficient of achieving a 1:1 ratio by $201.9 million and $227.1 million for the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred dividends, respectively.