EX-12 5 k24131exv12.htm RATIO OF EARNINGS TO FIXED CHARGES AT DECEMBER 31, 2007 exv12
 

EXHIBIT 12
PULTE HOMES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Years Ended December 31,  
    2007     2006     2005     2004     2003  
Earnings:
                                        
 
                                        
Income from continuing operations before taxes
  $ (2,496,903 )   $ 1,082,728     $ 2,277,014     $ 1,592,324     $ 994,008  
Add:
                                        
Fixed charges
    295,130       316,596       274,156       231,252       202,716  
Amortization of capitalized interest
    314,998       255,688       179,585       133,049       78,708  
Subtract:
                                        
Capitalized interest
    (240,000 )     (261,486 )     (185,792 )     (156,056 )     (136,308 )
Distributions in excess (less than) earnings of affiliates
     39,038       4,814       10,670       (21,625 )     (36,186 )
 
                              
 
Income as adjusted
  $ (2,087,737 )   $ 1,398,340     $ 2,555,633     $ 1,778,944     $ 1,102,938  
 
                              
 
                                        
Fixed Charges:
                                        
 
                                        
Interest expensed and capitalized
  $ 260,348     $ 290,282     $ 250,026     $ 212,418     $ 186,339  
Portion of rents representative of interest factor
    23,336       25,889       24,130       18,834       16,377  
Interest expense related to guaranteed debt of 50% or less owned affiliates (a)
    11,446       425       —       —       —  
 
                              
Fixed charges
  $ 295,130     $ 316,596     $ 274,156     $ 231,252     $ 202,716  
 
                              
 
                                        
Ratio of earnings to fixed charges (b)
    —       4.42       9.32       7.69       5.44  
 
                              
 
Note:   The ratios of earnings to fixed charges set forth above are computed on a total enterprise basis, except for our discontinued thrift operations, Mexico homebuilding operations, and Argentina operations, which have been excluded. Fixed charges is 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)   Includes imputed interest related to certain guaranteed joint venture debt for which we have made or expect to make cash expenditures.
 
(b)   Earnings for year ended December 31, 2007 were inadequate to cover fixed charges. Additional earnings of $2.4 billion would have been necessary to bring the ratio to 1.0.

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