EX-12.1 3 v01841a3exv12w1.txt EXHIBIT 12.1 . . . EXHIBIT 12.1 STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios) NINE MONTHS ENDED AUGUST 31, YEARS ENDED NOVEMBER 30, ----------------------- -------------------------------------------------------------- 2004 2003 2003 2002 2001 2000 1999 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Earnings Pretax Income ......................... $ 439,168 $ 346,328 $ 553,464 $ 469,250 $ 324,517 $ 297,660 $ 226,869 Less undistributed income of unconsolidated joint ventures ....... 8,014 1,044 1,590 3,677 2,958 496 712 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Pretax income as adjusted ............. 447,182 347,372 555,054 472,927 327,475 298,156 227,581 Add: Interest incurred ................... 104,686 94,235 124,790 110,994 119,421 110,924 90,137 Distributions on mandatorily redeemable preferred securities ... -- -- -- -- 11,385 15,180 15,180 Portion of rent expense considered to be interest .................... 11,894 9,640 13,297 11,277 12,252 11,831 10,297 Amortization of previously capitalized interest .............. 54,184 46,863 69,399 68,808 64,025 40,679 44,258 Deduct: Interest capitalized ................ (86,972) (71,276) (95,044) (68,370) (61,974) (62,722) (49,701) ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 530,974 $ 426,834 $ 667,496 $ 595,636 $ 472,584 $ 414,048 $ 337,752 ========== ========== ========== ========== ========== ========== ========== Fixed Charges: Interest incurred ................... $ 104,686 $ 94,235 $ 124,790 $ 110,994 $ 119,421 $ 110,924 $ 90,137 Distributions on mandatorily redeemable preferred securities ... -- -- -- -- 11,385 15,180 15,180 Portion of rent expense considered to be interest .................... 11,894 9,640 13,297 11,277 12,252 11,831 10,297 ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 116,580 $ 103,875 $ 138,087 $ 122,271 $ 143,058 $ 137,935 $ 115,614 ========== ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges ...... 4.55x 4.11x 4.83x 4.87x 3.30x 3.00x 2.92x ========== ========== ========== ========== ========== ========== ==========
We compute earnings by adding fixed charges (except capitalized interest) and amortization of previously capitalized interest to pretax earnings (excluding undistributed earnings of unconsolidated joint ventures). We compute fixed charges by adding interest expense and capitalized interest and the portion of rental expense we consider to be interest. Beginning July 7, 1998, our fixed charges have also included distributions on mandatorily redeemable preferred securities. On August 16, 2001, all of the mandatorily redeemable preferred securities were retired. No preferred stock was outstanding during any of the periods presented in the above table. In computing the ratios appearing above, we exclude from our interest expense interest incurred by our wholly owned limited purpose financing subsidiaries on their outstanding collateralized mortgage obligations. If we included interest on those collateralized mortgage obligations, the ratio of earnings to fixed charges for the nine months ended August 31, 2004 and August 31, 2003 and the years ended November 30, 2003, 2002, 2001, 2000 and 1999 would have been 4.55x, 4.09x, 4.81x, 4.82x, 3.27x, 2.96x and 2.84x, respectively. The amount of earnings we used in the calculation of the ratio of earnings to fixed charges for the year ended November 30, 1999 reflects an $18.2 million pretax secondary market trading loss we recorded in the third quarter of fiscal 1999. If we excluded the secondary market trading loss, the ratio of earnings to fixed charges would have been 3.08x for the year ended November 30, 1999. If we excluded the secondary market trading loss but included interest on the collateralized mortgage obligations of our limited purpose financing subsidiaries, the ratio of earnings to fixed charges would have been 2.99x for the year ended November 30, 1999. The amount of earnings used in the calculation of the ratio of earnings to fixed charges for the year ended November 30, 2000 includes a $39.6 million gain on the issuance in France of common stock by Kaufman & Broad S.A., a majority owned subsidiary, recorded in the first quarter of fiscal 2000. We sometimes refer to this stock issuance as the "French IPO". If the French IPO gain were excluded, the ratio of earnings to fixed charges would have been 2.71x for the year ended November 30, 2000. If we excluded the French IPO gain but included interest on the collateralized mortgage obligations of our limited purpose financing subsidiaries, the ratio of earnings to fixed charges would have been 2.68x for the year ended November 30, 2000.