EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of 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.

 

     Year ended December 31,  
     2009     2008     2007     2006     2005  
     (dollars in thousands)  

Earnings adjusted for fixed charges:

          

Income from continuing operations before income taxes(1)

   $ 758,224      $ 656,791      $ 674,224      $ 513,900      $ 354,592   

Add:

          

Debt expense

     185,755        224,716        257,147        276,706        139,586   

Interest portion of rent expense

     81,122        72,562        64,613        60,395        35,189   

Less: Noncontrolling interests(1)

     (57,803     (47,331     (46,702     (38,141     (23,495
                                        
     209,074        249,947        275,058        298,960        151,280   
                                        
   $ 967,298      $ 906,738      $ 949,282      $ 812,860      $ 505,872   
                                        

Fixed charges:

          

Debt expense

   $ 185,755      $ 224,716      $ 257,147      $ 276,706      $ 139,586   

Interest portion of rent expense

     81,122        72,562        64,613        60,395        35,189   

Capitalized interest

     3,627        4,189        3,878        4,708        1,912   
                                        
   $ 270,504      $ 301,467      $ 325,638      $ 341,809      $ 176,687   
                                        

Ratio of earnings to fixed charges

     3.58        3.01        2.92        2.38        2.86   
                                        

 

(1) The Company has changed the presentation of earnings attributable to noncontrolling interests for all prior periods presented.