EX-12.1 3 kbh-11302013x10kexhibit121.htm FIXED CHARGE RATIO KBH - 11.30.2013 - 10K Exhibit 12.1


EXHIBIT 12.1
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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratios)
 
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended November 30,
 
 
2013
 
2012
 
2011
 
2010
 
2009
Earnings
 
 
 
 
 
 
 
 
 
 
Income (loss) from operations before income taxes
 
$
38,363

 
$
(79,053
)
 
$
(181,168
)
 
$
(76,368
)
 
$
(311,184
)
Add:
 
 
 
 
 
 
 
 
 
 
Interest incurred
 
149,101

 
132,657

 
112,037

 
122,230

 
119,602

Amortization of premiums and discounts related to debt
 
5,347

 
3,016

 
2,150

 
2,149

 
1,586

Portion of rent expense considered to be interest
 
3,204

 
3,096

 
3,517

 
4,658

 
7,507

Amortization of previously capitalized interest
 
87,414

 
78,630

 
79,338

 
95,236

 
138,179

Distribution of earnings from unconsolidated joint ventures, net of equity in income (loss)
 
2,882

 
1,519

 
45,256

 
19,638

 
43,262

Deduct:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(86,411
)
 
(62,853
)
 
(62,833
)
 
(53,923
)
 
(67,839
)
Income (loss) as adjusted
 
$
199,900

 
$
77,012

 
$
(1,703
)
 
$
113,620

 
$
(68,887
)
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
 
 
 
Interest incurred
 
$
149,101

 
$
132,657

 
$
112,037

 
$
122,230

 
$
119,602

Amortization of premiums and discounts related to debt
 
5,347

 
3,016

 
2,150

 
2,149

 
1,586

Portion of rent expense considered to be interest
 
3,204

 
3,096

 
3,517

 
4,658

 
7,507

 
 
$
157,652

 
$
138,769

 
$
117,704

 
$
129,037

 
$
128,695

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
1.27
 x
 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Coverage deficiency (a)
 
$
—

 
$
(61,757
)
 
$
(119,407
)
 
$
(15,417
)
 
$
(197,582
)
 
 
 
 
 
 
 
 
 
 
 

The ratios of earnings to fixed charges are computed on a consolidated basis.

(a)
Earnings for the years ended November 30, 2012, 2011, 2010 and 2009 were insufficient to cover fixed charges for the period by $61.8 million, $119.4 million, $15.4 million and $197.6 million, respectively.