EX-12.1 3 l34833aexv12w1.htm EX-12.1 EX-12.1
Exhibit 12.1
Forest City Enterprises, Inc.
Computation of Ratio of Earnings to Fixed Charges
( dollars in thousands)
                                                 
    Nine Months Ended     Fiscal Year Ended January 31,  
    October 31, 2008     2008     2007     2006     2005     2004  
     
Earnings:
                                                
Earnings (loss) from continuing operations before income taxes (excluding equity in earnings of unconsolidated entities and minority interest)
   $ (71,002 )   $ (3,415 )   $ 32,404     $ 72,898     $ 56,153     $ 39,836  
 
                                                
Adjustments to earnings:
                                                
Interest incurred, net of capitalized interest
     264,265       328,887       283,332       253,345       222,297       166,172  
Amortization of mortgage procurement costs
     9,051       11,624       10,710       9,888       10,290       7,535  
Previously capitalized interest amortized into earnings
     9,115       10,747       9,320       8,477       7,254       6,582  
Cash distributions from unconsolidated entities
     91,552       97,685       161,498       68,696       86,338       70,335  
Portion of rents representative of interest factor
     9,563       11,738       9,367       7,920       9,700       8,162  
     
 
                                                
Earnings, as adjusted
   $ 312,544     $ 457,266     $ 506,631     $ 421,224     $ 392,032     $ 298,622  
     
 
                                                
Fixed charges:
                                                
Interest expensed
   $ 264,265     $ 328,887     $ 283,332     $ 253,345     $ 222,297     $ 166,172  
Interest capitalized
     75,124       89,372       86,775       66,172       42,143       32,941  
Amortization of mortgage procurement costs
     9,051       11,624       10,710       9,888       10,290       7,535  
Portion of rents representative of interest factor
     9,563       11,738       9,367       7,920       9,700       8,162  
     
 
                                                
Total fixed charges
   $ 358,003     $ 441,621     $ 390,184     $ 337,325     $ 284,430     $ 214,810  
     
 
                                                
Ratio of earnings to fixed charges (a)
     *   (b)     1.04       1.30       1.25       1.38       1.39  
     
 
(a)   Included in earnings from continuing operations are non-cash charges related to depreciation and amortization of $202.3 million, $232.6 million, $176.8 million, $158.7 million, $140.5 million and $95.5 million for the nine months ended October 31, 2008 and the fiscal years ended January 31, 2008, 2007, 2006, 2005 and 2004, respectively. Depreciation and amortization reduce earnings from continuing operations, but do not impact our ability to cover our fixed charges.
 
(b)   For the nine months ended October 31, 2008, the ratio of earnings to fixed charges was deficient of achieving a 1:1 ratio by $45.5 million.