EX-12.1 2 d59096exv12w1.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)

                                                         
    Three Months Ended June 30,     Fiscal Years Ended March 31, (1)  
    2008     2007     2008     2007     2006     2005     2004  
Total Enterprise:
                                                        
 
                                                        
Earnings
                                                        
Earnings (Loss) from continuing operations (2)
   $ (182,747 )   $ (196,865 )   $ (2,875,158 )   $ 106,786     $ 1,880,738     $ 1,394,606     $ 1,031,854  
Minority interests in income of consolidated subsidiaries
     253       465       1,333       2,587       3,469       2,467       3,723  
Undistributed (income) loss from equity investments
     5,781       (1,679 )     104,479       79,615       6,298       (3,717 )     (16,023 )
Fixed charges
     65,945       92,912       312,277       421,491       321,733       236,001       182,945  
Interest capitalized
     (52,969 )     (66,842 )     (238,203 )     (308,023 )     (232,860 )     (176,874 )     (115,186 )
Amortization of capitalized interest
     25,603       45,123       314,017       246,579       171,189       131,937       89,144  
 
                                          
Net Earnings (Loss)
   $ (138,134 )   $ (126,886 )   $ (2,381,255 )   $ 549,035     $ 2,150,567     $ 1,584,420     $ 1,176,457  
 
                                          
 
                                                        
Fixed Charges
                                                        
Interest expense including amortization of debt discount (3)
   $ 63,520     $ 89,387     $ 302,577     $ 407,391     $ 312,133     $ 228,501     $ 176,645  
Interest factor attributable to rentals
     2,425       3,525       9,700       14,100       9,600       7,500       6,300  
 
                                          
Total Fixed Charges
   $ 65,945     $ 92,912     $ 312,277     $ 421,491     $ 321,733     $ 236,001     $ 182,945  
 
                                          
 
                                                        
Ratio of Earnings to Fixed Charges
     (2.09 )     (1.37 )     (7.63 )     1.30       6.68       6.71       6.43  
 
                                          
 
                                                        
Total Enterprise (with financial services reflected on the equity method): (4)
                                                        
 
                                                        
Earnings
                                                        
Earnings (Loss) from continuing operations (2)
   $ (182,747 )   $ (196,865 )   $ (2,875,158 )   $ 106,786     $ 1,880,738     $ 1,394,606     $ 1,031,854  
Undistributed (income) loss from equity investments
     (286 )     (16,648 )     242,632       (4,915 )     (78,167 )     (99,689 )     (181,801 )
Fixed charges
     60,992       71,299       255,297       326,663       252,929       201,252       158,020  
Interest capitalized
     (52,969 )     (66,842 )     (238,203 )     (308,023 )     (232,860 )     (176,874 )     (115,186 )
Amortization of capitalized interest
     25,603       45,123       314,017       246,579       171,189       131,937       89,144  
 
                                          
Net Earnings (Loss)
   $ (149,407 )   $ (163,933 )   $ (2,301,415 )   $ 367,090     $ 1,993,829     $ 1,451,232     $ 982,031  
 
                                          
 
                                                        
Fixed Charges
                                                        
Interest expense including amortization of debt discount (3)
   $ 59,217     $ 68,899     $ 248,197     $ 317,063     $ 246,229     $ 196,352     $ 154,720  
Interest factor attributable to rentals
     1,775       2,400       7,100       9,600       6,700       4,900       3,300  
 
                                          
Total Fixed Charges
   $ 60,992     $ 71,299     $ 255,297     $ 326,663     $ 252,929     $ 201,252     $ 158,020  
 
                                          
 
                                                        
Ratio of Earnings to Fixed Charges
     (2.45 )     (2.30 )     (9.01 )     1.12       7.88       7.21       6.21  
 
                                          

(1)  

The ratios presented in this table have been adjusted to reflect our home services operations (sold in April 2008), 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.