EX-12 5 k12634exv12.htm RATIO EARNINGS TO FIXED CHARGES AT DECEMBER 31, 2006 exv12
 

EXHIBIT 12
PULTE HOMES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Years Ended December 31,  
    2006     2005     2004     2003     2002  
Earnings:
                                        
 
                                        
Income from continuing operations before taxes
  $ 1,082,728     $ 2,277,014     $ 1,592,324     $ 994,008     $ 722,686  
Add:
                                        
Interest expensed and capitalized
    290,282       250,026       212,418       186,339       169,255  
Portion of rents representative of interest factor
    25,889       24,130       18,834       16,377       16,117  
Amortization of Capitalized Interest
    255,688       179,585       133,049       78,708       48,697  
Subtract:
                                        
Capitalized Interest
    (261,486 )     (185,792 )     (156,056 )     (136,308 )     (123,086 )
Distributions in excess (less than) earnings of affiliates
     4,814       10,670       (21,625 )     (36,186 )     (7,716 )
 
                              
 
                                        
Income as adjusted
  $ 1,397,915     $ 2,555,633     $ 1,778,944     $ 1,102,938     $ 825,953  
 
                              
 
                                        
Fixed Charges:
                                        
 
                                        
Interest expensed and capitalized
    290,282       250,026       212,418       186,339       169,255  
Portion of rents representative of interest factor
    25,889       24,130       18,834       16,377       16,117  
Interest expense related to guaranteed debt of 50% or less owned affiliates (a)
    425       —       —       —       —  
 
                              
Fixed charges
  $ 316,596     $ 274,156     $ 231,252     $ 202,716     $ 185,372  
 
                              
 
                                        
Ratio of earnings to fixed charges
    4.42       9.32       7.69       5.44       4.46  
 
                              
Note:   The ratios of earnings to fixed charges set forth above are computed on a total enterprise basis, except for our discontinued thrift operations, Mexico homebuilding operations, and Argentina operations, which have been excluded. Fixed charges is comprised of interest incurred, which includes imputed interest associated with the guaranteed debt of our 50% or less owned affiliates, as well as a portion of rent expense, which represents the estimated interest factor and amortization of debt expense.
 
(a)   In accordance with our guarantees of joint venture debt, imputed interest on expected cash outlays to be made by us, to maintain a certain ratio of value of collateral (generally land and improvements) as a specified percentage of the loan balance, has been reflected as a fixed charge in the ratios of earnings to fixed charges computation shown above.

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