EX-12.1 2 d50861exv12w1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1
Centex Corporation
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands, except ratios)
                                                         
    Six Months Ended September 30,     Fiscal Years Ended March 31, (1)  
    2007     2006     2007     2006     2005     2004     2003  
Total Enterprise:
                                                        
 
                                                        
Earnings
                                                        
Earnings (Loss) from continuing operations (2)
   $ (1,217,350 )   $ 409,632     $ 102,773     $ 1,872,276     $ 1,378,131     $ 1,029,045     $ 649,091  
Minority interests in income of consolidated subsidiaries
     829       1,498       2,587       3,469       2,467       3,723       —  
Undistributed (income) loss from equity investments
     (1,103 )     17,617       79,615       6,298       (3,717 )     (16,023 )     6,885  
Fixed charges
     182,800       201,035       421,991       322,633       236,401       182,945       148,655  
Interest capitalized
     (132,465 )     (153,118 )     (308,023 )     (232,860 )     (176,874 )     (115,186 )     (73,602 )
Amortization of capitalized interest
     145,794       83,920       246,579       171,189       131,937       89,144       49,450  
 
                                          
Net Earnings (Loss)
   $ (1,021,495 )   $ 560,584     $ 545,522     $ 2,143,005     $ 1,568,345     $ 1,173,648     $ 780,479  
 
                                          
 
                                                        
Fixed Charges
                                                        
Interest expense including amortization of debt discount (3)
   $ 175,500     $ 195,785     $ 407,391     $ 312,133     $ 228,501     $ 176,645     $ 141,755  
Interest factor attributable to rentals
     7,300       5,250       14,600       10,500       7,900       6,300       6,900  
 
                                          
Total Fixed Charges
   $ 182,800     $ 201,035     $ 421,991     $ 322,633     $ 236,401     $ 182,945     $ 148,655  
 
                                          
 
                                                        
Ratio of Earnings to Fixed Charges
     (5.59 )     2.79       1.29       6.64       6.63       6.42       5.25  
 
                                          
 
                                                        
Total Enterprise (with financial services reflected on the equity method): (4)
                                                        
 
                                                        
Earnings
                                                        
Earnings (Loss) from continuing operations (2)
   $ (1,217,350 )   $ 409,632     $ 102,773     $ 1,872,276     $ 1,378,131     $ 1,029,045     $ 649,091  
Undistributed (income) loss from equity investments
     38,010       (31,634 )     (4,915 )     (78,167 )     (99,689 )     (181,801 )     (107,791 )
Fixed charges
     143,633       156,835       327,463       253,529       201,752       158,020       139,856  
Interest capitalized
     (132,465 )     (153,118 )     (308,023 )     (232,860 )     (176,874 )     (115,186 )     (73,602 )
Amortization of capitalized interest
     145,794       83,920       246,579       171,189       131,937       89,144       49,450  
 
                                          
Net Earnings (Loss)
   $ (1,022,378 )   $ 465,635     $ 363,877     $ 1,985,967     $ 1,435,257     $ 979,222     $ 657,004  
 
                                          
 
                                                        
Fixed Charges
                                                        
Interest expense including amortization of debt discount (3)
   $ 138,433     $ 153,185     $ 317,063     $ 246,229     $ 196,352     $ 154,720     $ 134,756  
Interest factor attributable to rentals
     5,200       3,650       10,400       7,300       5,400       3,300       5,100  
 
                                          
Total Fixed Charges
   $ 143,633     $ 156,835     $ 327,463     $ 253,529     $ 201,752     $ 158,020     $ 139,856  
 
                                          
 
                                                        
Ratio of Earnings to Fixed Charges
     (7.12 )     2.97       1.11       7.83       7.11       6.20       4.70  
 
                                          
 
(1)   The ratios presented in this table have been adjusted to reflect our Construction Services (sold in March 2007), Home Equity (sold in July 2006), International Homebuilding (sold in September 2005), Construction Products (spun off in January 2004), and Manufactured Homes (spun off in June 2003) as discontinued operations.
 
(2)   Earnings (Loss) from Continuing Operations are Before Income Taxes and Cumulative Effect of a Change in Accounting Principle adopted in fiscal 2004.
 
(3)   Excludes interest related to our unrecognized tax benefits as such interest is included as a component of the income tax provision.
 
(4)   Represents a supplemental presentation that reflects the Financial Services segment as if accounted for under the equity method. We believe that separate disclosure of the consolidating information is useful because the Financial Services subsidiaries operate in a distinctly different financial environment that generally requires significantly less equity to support their higher debt levels compared to the operations of our other subsidiaries; the Financial Services subsidiaries have structured their financing programs substantially on a stand alone basis; and we have limited obligations with respect to the indebtedness of our Financial Services subsidiaries. Management uses this information in its financial and strategic planning. We also use this presentation to allow investors to compare us to homebuilders that do not have financial services operations.