EX-12.1 2 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.

 

     Six months
ended
June 30,
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)

    $ 363,196      $ 656,791      $ 674,224      $ 513,900      $ 354,592      $ 346,531   

Add:

             

Debt expense

      95,389        224,716        257,147        276,706        139,586        52,411   

Interest portion of rent expense

      39,694        72,562        64,613        60,395        35,189        24,305   

Less: Noncontrolling interests (1)

      (25,876 )      (47,160 )      (46,865 )      (38,141 )      (23,495 )      (13,691 ) 
                                                
     109,207        250,118        274,895        298,960        151,280        63,025   
                                                
   $ 472,403      $ 906,909      $ 949,119      $ 812,860      $ 505,872      $ 409,556   
                                                

Fixed charges:

             

Debt expense

    $ 95,389      $ 224,716      $ 257,147      $ 276,706      $ 139,586      $ 52,411   

Interest portion of rent expense

      39,694        72,562        64,613        60,395        35,189        24,305   

Capitalized interest

      1,588        4,189        3,878        4,708        1,912        1,078   
                                                
   $ 136,671      $ 301,467      $ 325,638      $ 341,809      $ 176,687      $ 77,794   
                                                

Ratio of earnings to fixed charges

      3.46        3.01        2.91        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.