EX-12 4 v73629orex12.txt EXHIBIT 12 EXHIBIT 12 Statement of Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
Nine Months Ended August 31, Years Ended November 30, --------------------- --------------------------------------------------------- 2001 2000 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- --------- --------- Earnings Pretax income (loss).......................... $ 190,509 $ 186,553 $ 297,660 $ 226,869 $ 146,567 $ 91,030 $ (95,744) Less undistributed income of unconsolidated joint ventures ............................... 707 646 496 712 757 -- -- --------- --------- --------- --------- --------- --------- --------- Pretax income as adjusted ................... 191,216 187,199 298,156 227,581 147,324 91,030 (95,744) Add: Interest incurred ...................... 91,393 80,330 110,924 90,137 62,638 59,438 72,074 Distributions on mandatorily redeemable preferred securities ..... 11,385 11,385 15,180 15,180 6,072 -- -- Portion of rent expense considered to be interest ...................... 9,525 8,734 11,831 10,297 7,206 5,758 3,830 Amortization of previously capitalized interest ................ 43,480 28,362 40,679 44,258 30,752 25,480 24,893 Deduct: Interest capitalized ................... (47,810) (45,897) (62,722) (49,701) (30,958) (22,639) (26,937) --------- --------- --------- --------- --------- --------- --------- $ 299,189 $ 270,113 $ 414,048 $ 337,752 $ 223,034 $ 159,067 $ (21,884) ========= ========= ========= ========= ========= ========= ========= Fixed Charges: Interest incurred ...................... $ 91,393 $ 80,330 $ 110,924 $ 90,137 $ 62,638 $ 59,438 $ 72,074 Distributions on mandatorily redeemable preferred securities ..... 11,385 11,385 15,180 15,180 6,072 -- -- Portion of rent expense considered to be interest ...................... 9,525 8,734 11,831 10,297 7,206 5,758 3,830 --------- --------- --------- --------- --------- --------- --------- $ 112,303 $ 100,449 $ 137,935 $ 115,614 $ 75,916 $ 65,196 $ 75,904 ========= ========= ========= ========= ========= ========= ========= Ratio of earnings to fixed charges .......... 2.66x 2.69x 3.00x 2.92x 2.94x 2.44x -- ========= ========= ========= ========= ========= ========= =========
For purposes of calculating the ratio of earnings to fixed charges, 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. Since 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. In computing the ratio of earnings to fixed charges, 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, earnings for the year ended November 30, 1996 would have been inadequate to cover fixed charges by $97.8 million, while the ratio of earnings to fixed charges for the nine months ended August 31, 2001 and 2000 and the years ended November 30, 2000, 1999, 1998 and 1997 would have been 2.64x, 2.65x, 2.96x, 2.84x, 2.78x and 2.29x, respectively. Our earnings for the year ended November 30, 1996 were inadequate to cover fixed charges by $97.8 million due to the $170.8 million pretax noncash charge for impairment of long-lived assets we recorded in the second quarter of fiscal 1996. The amount of earnings used in the calculation of the ratio of earnings to fixed charges for the year ended November 30, 1996 reflects a $170.8 million pretax noncash charge for impairment of long-lived assets we recorded in the second quarter of fiscal 1996. If we excluded the noncash charge for impairment of long-lived assets, the ratio of earnings to fixed charges for the year ended November 30, 1996 would have been 1.96x. If we excluded the non-cash charge for impairment of long-lived assets but included interest on the collateralized mortgage obligations of our limited purpose financing subsidiaries, the ratio of earnings to fixed charges would have been 1.87x for the year ended November 30, 1996. 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 marketing trading loss we recorded in the third quarter of fiscal 1999. If we excluded the secondary marketing 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 marketing 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 nine months ended August 31, 2000 and the year ended November 30, 2000 includes a $39.6 million French IPO gain recorded in the first quarter of fiscal 2000. If the French IPO gain were excluded, the ratio of earnings to fixed charges would have been 2.29x for the nine months ended August 31, 2000 and 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 2.27x for the nine months ended August 31, 2000 and 2.68x for the year ended November 30, 2000. Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends (In thousands, except ratios)
Nine Months Ended August 31, Years Ended November 30, ---------------------- --------------------------------------------------------- 2001 2000 2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- --------- --------- Earnings Pretax income (loss)....................... $ 190,509 $ 186,553 $ 297,660 $ 226,869 $ 146,567 $ 91,030 $ (95,744) Less undistributed income of unconsolidated joint ventures ............................ 707 646 496 712 757 -- -- --------- --------- --------- --------- --------- --------- --------- Pretax income as adjusted ................ 191,216 187,199 298,156 227,581 147,324 91,030 (95,744) Add: Interest incurred ................... 91,393 80,330 110,924 90,137 62,638 59,438 72,074 Distributions on mandatorily redeemable preferred securities .. 11,385 11,385 15,180 15,180 6,072 -- -- Portion of rent expense considered to be interest ................... 9,525 8,734 11,831 10,297 7,206 5,758 3,830 Amortization of previously capitalized interest ............. 43,480 28,362 40,679 44,258 30,752 25,480 24,893 Deduct: Interest capitalized ................ (47,810) (45,897) (62,722) (49,701) (30,958) (22,639) (26,937) --------- --------- --------- --------- --------- --------- --------- $ 299,189 $ 270,113 $ 414,048 $ 337,752 $ 223,034 $ 159,067 $ (21,884) ========= ========= ========= ========= ========= ========= ========= Fixed Charges: Preferred dividends (pre-tax effect) $ -- $ -- $ -- $ -- $ -- $ -- $ 7,719 Interest incurred ................... 91,393 80,330 110,924 90,137 62,638 59,438 72,074 Distributions on mandatorily redeemable preferred securities .. 11,385 11,385 15,180 15,180 6,072 -- -- Portion of rent expense considered to be interest ................... 9,525 8,734 11,831 10,297 7,206 5,758 3,830 --------- --------- --------- --------- --------- --------- --------- $ 112,303 $ 100,449 $ 137,935 $ 115,614 $ 75,916 $ 65,196 $ 83,623 ========= ========= ========= ========= ========= ========= ========= Ratio of earnings to fixed charges ....... 2.66 x 2.69 x 3.00 x 2.92 x 2.94 x 2.44 x -- ========= ========= ========= ========= ========= ========= =========
For purposes of calculating the ratio of earnings to combined fixed charges and preferred stock dividends, we compute earnings by adding fixed charges (except capitalized interest and the effect of preferred stock dividends) 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. Since 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. Before April 1, 1996, our fixed charges included the effect of preferred stock dividends on our Series B Mandatory Conversion Premium Dividend Preferred Stock. On April 1, 1996, all shares of our Series B Mandatory Conversion Premium Dividend Preferred Stock were mandatorily converted to shares of common stock. In computing the ratio of earnings to combined fixed charges and preferred stock dividends, 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, earnings for the year ended November 30, 1996 would have been inadequate to cover combined fixed charges and preferred stock dividends by $105.5 million, while the ratio of earnings to combined fixed charges and preferred stock dividends for the nine months ended August 31, 2001 and 2000 and the years ended November 30, 2000, 1999, 1998 and 1997 would have been 2.64x, 2.65x, 2.96x, 2.84x, 2.78x and 2.29x, respectively. Our earnings for the year ended November 30, 1996 were inadequate to cover combined fixed charges and preferred stock dividends by $105.5 million due to the $170.8 million pretax noncash charge for impairment of long-lived assets we recorded in the second quarter of fiscal 1996. The amount of earnings used in the calculation of the ratio of earnings to combined fixed charges and preferred stock dividends for the year ended November 30, 1996 reflects a $170.8 million pretax noncash charge for impairment of long-lived assets we recorded in the second quarter of fiscal 1996. If we excluded the noncash charge for impairment of long-lived assets, the ratio of earnings to combined fixed charges and preferred stock dividends for the year ended November 30, 1996 would have been 1.78x. If we excluded the noncash charge for impairment of long-lived assets but included interest on the collateralized mortgage obligations of our limited purpose financing subsidiaries, the ratio of earnings to combined fixed charges and preferred stock dividends would have been 1.71x for the year ended November 30, 1996. The amount of earnings used in the calculation of the ratio of earnings to combined fixed charges and preferred stock dividends for the year ended November 30, 1999 reflects an $18.2 million pretax secondary marketing trading loss we recorded in the third quarter of fiscal 1999. If we excluded the secondary marketing trading loss, the ratio of earnings to combined fixed charges and preferred stock dividends would have been 3.08x for the year ended November 30, 1999. If we excluded the secondary marketing trading loss but included interest on the collateralized mortgage obligations of our limited purpose financing subsidiaries, the ratio of earnings to combined fixed charges and preferred stock dividends 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 combined fixed charges and preferred stock dividends for the nine months ended August 31, 2000 and the year ended November 30, 2000 includes a $39.6 million French IPO gain recorded in the first quarter of fiscal 2000. If the French IPO gain were excluded, the ratio of earnings to combined fixed charges and preferred stock dividends would have been 2.29x for the nine months ended August 31, 2000 and 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 combined fixed charges and preferred stock dividends would have been 2.27x for the nine months ended August 31, 2000 and 2.68x for the year ended November 30, 2000.