EX-12 2 a2015q3exhibit12.htm EXHIBIT 12 Exhibit


 
 
 
 
Exhibit 12
 
 
 
 
 
 
 
 
TAUBMAN CENTERS, INC.
 
 
 
 
 
 
 
 
Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends
 
 
(in thousands, except ratios)
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
 
 
2015
 
2014
 
 
 
 
 
 
 
 
Income before income tax expense, equity in income of Unconsolidated Joint Ventures, and gain on dispositions, net of tax (1)
$
101,337

 
$
105,432

 
 
 
 
 
 
 
 
Add back:
 
 
 
 
 
Fixed charges
72,176

 
97,808

 
 
Amortization of previously capitalized interest
1,545

 
2,612

 
 
Distributed income of Unconsolidated Joint Ventures
46,298

 
41,222

 
 
 
 
 
 
 
 
Deduct:
 
 
 
 
 
Capitalized interest
(24,569
)
 
(18,844
)
 
 
 
 
 
 
 
 
Earnings available for fixed charges and preferred dividends
$
196,787

 
$
228,230

 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
Interest expense
$
44,451

 
$
74,946

 
 
Capitalized interest
24,569

 
18,844

 
 
Interest portion of rent expense
3,156

 
4,018

 
 
 
 
 
 
 
 
Total fixed charges
$
72,176

 
$
97,808

 
 
 
 
 
 
 
 
Preferred dividends
17,353

 
17,353

 
 
 
 
 
 
 
 
Total fixed charges and preferred dividends
$
89,529

 
$
115,161

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred dividends
2.2

 
2.0

 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
In 2014, the gain on dispositions, net of tax, of $476.9 million, which includes the gain on dispositions of interests in International Plaza, Arizona Mills, and land in Syosset, New York related to the former Oyster Bay project, has been excluded from earnings for purposes of calculating the ratio of earnings to fixed charges and preferred dividends. In 2015, the adjustment of $0.4 million that was made to reduce the tax recognized as a result of the sale of International Plaza has also been excluded from earnings for purposes of calculating the ratio of earnings to fixed charges and preferred dividends.