EX-12.1 4 g27450exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
Brookdale Senior Living Inc.
Ratio of Earnings to Fixed Charges and Preferred Dividends
(in thousands)
                                                 
    Three Months    
    Ended    
    March 31,   Years Ended December 31
    2011   2010   2009   2008   2007   2006
Earnings:
                                               
 
                                               
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
    (23,725 )     (80,501 )     (99,621 )     (459,111 )     (260,246 )     (142,202 )
 
                                               
Plus:
                                               
Fixed charges
    56,420       232,079       230,942       248,333       242,052       178,938  
Distributions from equity investees
    60       872       1,466       7,668       3,559       1,576  
 
                                               
Less:
                                               
Capitalized Interest
    (72 )     (264 )     (1,960 )     (1,504 )     (545 )      
 
                                               
Total earnings
    32,683       152,186       130,827       (204,614 )     (15,180 )     38,312  
 
                                               
 
                                               
Fixed charges:
                                               
 
                                               
Interest expense and amortization of debt discount/premium on all indebtedness (excluding losses recognized on early extinguishments of debt)
    34,265       141,604       138,374       157,096       151,055       102,755  
Capitalized interest expense
    72       264       1,960       1,504       545        
Amount of pre-tax earnings required to cover any preferred stock dividend requirements
                                   
Interest factor portion of rental expense
    22,083       90,211       90,608       89,733       90,452       76,183  
 
                                               
 
                                               
Total fixed charges
    56,420       232,079       230,942       248,333       242,052       178,938  
 
                                               
 
                                               
Ratio of earnings to fixed charges
    0.6       0.7       0.6       (0.8 )     (0.1 )     0.2  
 
                                               
 
                                               
Coverage deficiencies
    23,737       79,893       100,115       452,947       257,232       140,626  
For purposes of this computation, earnings are defined as income (loss) before income taxes and adjustment for minority interest in consolidated subsidiaries or income or loss from equity investees, plus fixed charges, amortization of capitalized interest and distributed income of equity investees, less capitalized interest. Fixed charges are defined as the sum of interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of the interest within rent expense.