EX-12 6 fy12exhibit12.htm EXHIBIT FY12 Exhibit 12


 
 
 
 
 
 
 
 
 
Exhibit 12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TAUBMAN CENTERS, INC.
 
 
 
 
 
 
 
 
 
 
 
 
 
Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends
 
(in thousands, except ratios)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
 
 
2012
 
2011
 
2010
 
2009
 
2008
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income from
 
 
 
 
 
 
 
 
 
 
 
equity investees and taxes (1) (2)
$
114,287

 
$
95,945

 
$
77,928

 
$
94,632

 
$
(26,965
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Add back:
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
152,517

 
127,128

 
139,410

 
139,854

 
148,738

 
 
Amortization of previously capitalized interest
4,427

 
4,401

 
4,411

 
4,443

 
4,460

 
 
Distributed income of Unconsolidated Joint Ventures (3)
48,494

 
46,064

 
45,412

 
11,488

 
35,356

 
 
 
 
 
 
 
 
 
 
 
 
 
Deduct:
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
(3,594
)
 
(422
)
 
(319
)
 
(1,257
)
 
(7,972
)
 
 
Preferred distributions (4)
 
 
372

 
(2,460
)
 
(2,460
)
 
(2,460
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings available for fixed charges and preferred
 
 
 
 
 
 
 
 
 
 
 
dividends
$
316,131

 
$
273,488

 
$
264,382

 
$
246,700

 
$
151,157

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
142,616

 
$
122,277

 
$
132,362

 
$
131,558

 
$
133,455

 
 
Capitalized interest
3,594

 
422

 
319

 
1,257

 
7,972

 
 
Interest portion of rent expense
6,307

 
4,801

 
4,269

 
4,579

 
4,851

 
 
Preferred distributions (4)
 
 
(372
)
 
2,460

 
2,460

 
2,460

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
152,517

 
$
127,128

 
$
139,410

 
$
139,854

 
$
148,738

 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred dividends (5)
21,051

 
14,634

 
14,634

 
14,634

 
14,634

 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges and preferred dividends
$
173,568

 
$
141,762

 
$
154,044

 
$
154,488

 
$
163,372

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred dividends (1)
1.8

 
1.9

 
1.7

 
1.6

 
0.9

(6
)
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
In 2011, the Company disposed of The Pier Shops at Caesars and Regency Square. These centers are reported separately as discontinued operations in the Consolidated Financial Statements in 2011. See "Note 2- Acquisitions, Dispositions, and Development" to the Consolidated Financial Statements for further discussion of our discontinued operations. All reported periods of the calculation of the ratio of earnings to fixed charges exclude discontinued operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
(2
)
Earnings before income from equity investees for the year ended December 31, 2008 includes a $117.9 million impairment charge related to our Oyster Bay project.
 
 
 
 
 
 
 
 
 
 
 
 
 
(3
)
Distributed income of Unconsolidated Joint Ventures for the year ended December 31, 2009 includes $30.4 million in litigation charges related to Westfarms. Distributed income of Unconsolidated Joint Ventures for the year ended December 31, 2008 includes an $8.3 million impairment charge related to our investment in University Town Center.
 
 
 
 
 
 
 
 
 
 
 
 
 
(4
)
In October 2011, the Company redeemed the Operating Partnership's 8.2% Series F Preferred Equity for $27 million, which represented a $2.2 million discount from the book value.
 
 
 
 
 
 
 
 
 
 
 
 
 
(5
)
In September 2012, the Company redeemed its 8% Series G Preferred Stock and its 7.625% Series H Preferred Stock. As a result of these redemptions, the Company recognized a charge of $6.4 million, which represents the difference between the carrying values and the redemption prices of the Series G & H Preferred Stock. This charge is included in preferred dividends for the year ended December 31, 2012.
 
 
 
 
 
 
 
 
 
 
 
 
 
(6
)
Earnings available for fixed charges and preferred dividends were less than total fixed charges and preferred dividends by $12.2 million for 2008. See notes (2) and (3) above.