EX-12.1 3 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12.1

DAVITA INC.

RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose are defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period less noncontrolling interests. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rent expense on operating leases, and capitalized interest.

 

     Three months
ended
March 31,
2009		     Year ended December 31,  
       2008     2007     2006     2005     2004  
     (dollars in thousands)  

Earnings adjusted for fixed charges:

             

Income from continuing operations before income taxes (1)

    $ 173,057     $ 656,791     $ 674,224     $ 513,900     $ 354,592     $ 346,531  

Add:

             

Debt expense

      48,301       224,716       257,147       276,706       139,586       52,411  

Interest portion of rent expense

      19,694       72,562       64,613       60,395       35,189       24,305  

Less: Noncontrolling interests (1)

     (12,063 )     (47,331 )     (46,702 )     (38,141 )     (23,495 )     (13,691 )
                                                
     55,932       249,947       275,058       298,960       151,280       63,025  
                                                
   $ 228,989     $ 906,738     $ 949,282     $ 812,860     $ 505,872     $ 409,556  
                                                

Fixed charges:

             

Debt expense

    $ 48,301     $ 224,716     $ 257,147     $ 276,706     $ 139,586     $ 52,411  

Interest portion of rent expense

      19,694       72,562       64,613       60,395       35,189       24,305  

Capitalized interest

      647       4,189       3,878       4,708       1,912       1,078  
                                                
   $ 68,642     $ 301,467     $ 325,638     $ 341,809     $ 176,687     $ 77,794  
                                                

Ratio of earnings to fixed charges

      3.34       3.01       2.92       2.38       2.86       5.26  
                                                

 

(1)

The adoption of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, has changed the presentation of earnings attributable to noncontrolling interests for all periods presented.