EX-12 6 tol-20151031x10kxex12.htm EXHIBIT 12 Exhibit


Exhibit 12

Statement of Computation of Ratio of Earnings to Fixed Charges
($ amounts in thousands)
 
Year Ended October 31,
 
2011
 
2012
 
2013
 
2014
 
2015
Earnings:
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(29,366
)
 
$
112,942

 
$
267,697

 
$
504,582

 
$
535,562

Adjustments to income (loss) before income taxes:
 
 
 
 
 
 
 
 
 
(Income) loss from unconsolidated entities
1,194

 
(23,592
)
 
(14,392
)
 
(41,141
)
 
(21,119
)
Distributed earnings from unconsolidated entities
12,081

 
5,258

 
23,468

 
43,973

 
19,459

Interest expense
80,282

 
90,521

 
115,238

 
142,851

 
147,477

Rent expense
4,135

 
3,728

 
3,658

 
4,128

 
4,195

Amortization
1,347

 
1,782

 
2,952

 
3,639

 
3,516

 
$
69,673

 
$
190,639

 
$
398,621

 
$
658,032

 
$
689,090

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest incurred
$
114,761

 
$
125,783

 
$
134,198

 
$
163,815

 
$
155,170

Rent expense
4,135

 
3,728

 
3,658

 
4,128

 
4,195

Amortization
1,347

 
1,782

 
2,952

 
3,639

 
3,516

 
$
120,243

 
$
131,293

 
$
140,808

 
$
171,582

 
$
162,881

Ratio of earnings to fixed charges
(a)

 
1.45

 
2.83

 
3.84

 
4.23


Note:
Prior to October 31, 2015, we determined that our calculation of earnings for use in the ratio of earnings to fixed charges calculation was not correct as earnings were not adjusted to reflect the impact of income earned and distributed from our unconsolidated entities. Earnings for the years ended October 31, 2011, 2012, 2013, and 2014 have been restated to reflect (1) a reduction in earnings for income earned from unconsolidated entities and (2) and an increase in earnings for income distributed from unconsolidated entities.
(a)
For the year ended October 31, 2011, our earnings were not sufficient to cover fixed charges by approximately $50.6 million.