EX-12.1 2 a6302012exhibit121.htm EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGES 6.30.2012 Exhibit 12.1


Exhibit 12.1
D.R. HORTON, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
 
Nine Months Ended
June 30, 2012
 
For the Fiscal Year Ended September 30,
 
 
 
2011
 
2010
 
2009 (1)
 
2008
 
2007
 
 
($ in millions)
Consolidated income (loss) before income taxes
 
$
143.7

 
$
12.1

 
$
99.5

 
$
(556.8
)
 
$
(2,631.8
)
 
$
(951.2
)
Noncontrolling interests in income before income taxes of subsidiaries which have incurred fixed charges
 
—

 
—

 
—

 
—

 
—

 
2.6

Noncontrolling interests in losses before income taxes of majority owned subsidiaries which have incurred losses
 
—

 
—

 
(0.2
)
 
(3.1
)
 
(0.6
)
 
—

Amortization of capitalized interest
 
66.5

 
92.0

 
124.2

 
136.6

 
375.8

 
254.5

Interest expensed
 
24.5

 
57.0

 
94.4

 
110.3

 
56.6

 
52.6

Earnings (loss)
 
$
234.7

 
$
161.1

 
$
317.9

 
$
(313.0
)
 
$
(2,200.0
)
 
$
(641.5
)
Interest incurred
 
$
93.0

 
$
136.7

 
$
181.3

 
$
215.1

 
$
254.3

 
$
356.9

Fixed charges
 
$
93.0

 
$
136.7

 
$
181.3

 
$
215.1

 
$
254.3

 
$
356.9

Ratio of earnings to fixed charges
 
2.52

 
1.18

 
1.75

 
—

 
—

 
—

Coverage deficiency
 
 
 
 
 
 
 
$
528.1

 
$
2,454.3

 
$
998.4

 
 
Interest expensed and interest incurred included a loss on early retirement of debt of $12.1 million in fiscal 2007.
 

(1)
On October 1, 2009, the Company adopted the FASB’s authoritative guidance for accounting for debt with conversion options, which specifies that issuers of such instruments should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. As a result, fiscal 2009 interest expense and interest incurred were increased by $4.5 million and $8.2 million, respectively, due to the retrospective application of the change in accounting for the Company’s 2% convertible senior notes issued in May 2009.