EX-12 2 exhibit12-ratioofearningst.htm RATIO OF EARNINGS TO FIXED CHARGES AT DECEMBER 31, 2014 Exhibit 12 - Ratio of Earnings to fixed charges 12.31.14


EXHIBIT 12
PULTEGROUP, INC.
RATIO OF EARNINGS TO FIXED CHARGES
($000’s omitted)
 
 
 
Years Ended December 31,
 
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before
   income taxes
 
$
689,758

 
$
527,822

 
$
183,554

 
$
(310,300
)
 
$
(1,234,546
)
Fixed charges
 
139,422

 
162,418

 
210,394

 
231,208

 
281,582

Amortization of capitalized interest
 
194,728

 
255,065

 
224,291

 
189,382

 
180,918

Capitalized interest
 
(131,444
)
 
(154,107
)
 
(201,103
)
 
(221,071
)
 
(264,932
)
Distributions in excess (less than) earnings of
   affiliates
 
(3,476
)
 
767

 
3,324

 
3,628

 
2,601

Income as adjusted
 
$
888,988

 
$
791,965

 
$
420,460

 
$
(107,153
)
 
$
(1,034,377
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
 
$
131,069

 
$
154,819

 
$
202,395

 
$
222,383

 
$
269,296

Portion of rents representative of interest factor
 
8,353

 
7,599

 
7,999

 
8,825

 
12,286

Fixed charges
 
$
139,422

 
$
162,418

 
$
210,394

 
$
231,208

 
$
281,582

Ratio of earnings to fixed charges (a)
 
6.4

 
4.9

 
2.0

 
—

 
—

Note: The ratios of earnings to fixed charges set forth above are computed on a consolidated basis. Fixed charges are comprised of interest incurred, which includes imputed interest associated with the guaranteed debt of our 50% or less owned affiliates, as well as a portion of rent expense, which represents the estimated interest factor and amortization of debt expense.
(a)
Earnings for years ended December 31, 2011and 2010 were inadequate to cover fixed charges. Additional earnings of $338.4 million, and $1.3 billion, respectively, would have been necessary to bring the ratio to 1.0.