EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

DAVITA INC.

RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose are defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period less noncontrolling interests. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rent expense on operating leases, and capitalized interest.

 

     Year ended December 31,  
     2010     2009     2008     2007     2006  
     (dollars in thousands)  

Earnings adjusted for fixed charges:

          

Income from continuing operations before income taxes

   $ 744,458      $ 758,224      $ 656,791      $ 674,224      $ 513,900   

Add:

          

Debt expense

     181,607        185,755        224,716        257,147        276,706   

Interest portion of rent expense

     87,116        81,122        72,562        64,613        60,395   

Less: Noncontrolling interests

     (79,405     (57,803     (47,331     (46,702     (38,141
                                        
     189,318        209,074        249,947        275,058        298,960   
                                        
   $ 933,776      $ 967,298      $ 906,738      $ 949,282      $ 812,860   
                                        

Fixed charges:

          

Debt expense

   $ 181,607      $ 185,755      $ 224,716      $ 257,147      $ 276,706   

Interest portion of rent expense

     87,116        81,122        72,562        64,613        60,395   

Capitalized interest

     2,621        3,627        4,189        3,878        4,708   
                                        
   $ 271,344      $ 270,504      $ 301,467      $ 325,638      $ 341,809   
                                        

Ratio of earnings to fixed charges

     3.44        3.58        3.01        2.92        2.38