EX-12 2 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES AT DECEMBER 31, 2010 Ratio of Earnings to Fixed Charges at December 31, 2010

EXHIBIT 12

PULTEGROUP, INC.

RATIO OF EARNINGS TO FIXED CHARGES

($000’s omitted)

 

     Years Ended December 31,  
     2010     2009     2008     2007     2006  

Earnings:

           

Income (loss) from continuing operations before income taxes

    $ (1,234,546 )    $ (1,975,119 )    $ (1,682,599 )    $ (2,496,903 )    $ 1,082,728   

Add:

           

Fixed charges

      281,582        261,303        255,621        295,130        316,596   

Amortization of capitalized interest

      180,918        165,355        210,709        314,998        255,688   

Subtract:

           

Capitalized interest

      (264,932 )      (234,700 )      (220,131 )      (240,000 )      (261,486 ) 

Distributions in excess (less than) earnings of affiliates

      2,601        31,195        14,580        39,038        4,814   
                                        

Income as adjusted

    $ (1,034,377 )    $ (1,751,966 )    $ (1,421,820 )    $ (2,087,737 )    $ 1,398,340   
                                        

Fixed charges:

           

Interest expensed and capitalized

    $ 269,296      $ 244,618      $ 229,157      $ 260,348      $ 290,282   

Portion of rents representative of interest factor

      12,286        16,079        23,810        23,336        25,889   

Interest expense related to guaranteed debt of 50% or less owned affiliate (a)

      -        606        2,654        11,446        425   
                                        

Fixed charges

    $ 281,582      $ 261,303      $ 255,621      $ 295,130      $ 316,596   
                                        

Ratio of earnings to fixed charges (b)

      -        -        -        -        4.42   
                                        

 

  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) Includes imputed interest related to certain guaranteed joint venture debt for which we have made or expect to make cash expenditures.

 

  (b) Earnings for years ended December 31, 2010, 2009, 2008, and 2007 were inadequate to cover fixed charges. Additional earnings of $1.3 billion, $2.0 billion, $1.7 billion, and $2.4 billion, respectively, would have been necessary to bring the ratio to 1.0.

 

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