EX-12.1 3 a96704exv12w1.htm EXHIBIT 12.1 exv12w1
 

Exhibit 12.1: Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratio)

                                         
    Year ended December 31,
    1999   2000   2001   2002   2003
   
 
 
 
 
Consolidated pretax income1
   $ 109,336     $ 134,840     $ 218,336     $ 309,340     $ 396,217  
Share of distributed income of 50%-or-less-owned affiliates, net of equity pickup
     (263 )     (163 )     (26 )     (2,689 )     94  
Amortization of capitalized interest
     19,027       27,581       31,878       32,162       38,263  
Interest1
     52,764       62,610       62,571       49,086       55,211  
Less interest capitalized during the period
     (24,397 )     (34,105 )     (31,675 )     (39,695 )     (42,602 )
Net amortization of debt discount and premium and issuance expense
     33       —       —       —       —  
Interest portion of rental expense
     4,522       6,065       7,190       6,679       5,973  
 
    
     
     
     
     
 
EARNINGS
   $ 161,022     $ 196,828     $ 288,274     $ 354,883     $ 453,156  
Interest1
   $ 52,764     $ 62,610     $ 62,571     $ 49,086     $ 55,211  
Net amortization of debt discount and premium and issuance expense
     33       —       —       —       —  
Interest portion of rental expense
     4,522       6,065       7,190       6,679       5,973  
 
    
     
     
     
     
 
FIXED CHARGES
   $ 57,319     $ 68,675     $ 69,761     $ 55,765     $ 61,184  
Ratio of earnings to fixed charges
     2.81       2.87       4.13       6.36       7.41  
Ratio before reclassification of costs associated with the early extinguishment of debt1
     2.81       2.87       4.61       6.36       7.41  

1 The Company adopted the provisions of SFAS 145, with respect to the rescission of Statement 4, in the third quarter of 2002. As a result, $7.2 million of costs associated with the early extinguishment of long-term debt, previously classified as an extraordinary item in 2001, are currently included in homebuilding interest expense. Accordingly, the effect of such reclassification has been reflected in the computation of the 2001 ratio.