EX-12.1 3 d276082dex121.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,  
     2011     2010     2009     2008     2007  
     (dollars in thousands)  

Earnings adjusted for fixed charges:

          

Income from continuing operations before income taxes

   $ 892,674      $ 743,990      $ 757,579      $ 656,720      $ 673,967   

Add:

          

Debt expense

     241,090        181,607        185,755        224,716        257,147   

Interest portion of rent expense

     96,205        86,879        80,912        72,404        64,457   

Less: Noncontrolling interests

     (96,049     (79,406     (57,803     (47,331     (46,702
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     241,246        189,080        208,864        249,789        274,902   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,133,920      $ 933,070      $ 966,443      $ 906,509      $ 948,869   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

          

Debt expense

   $ 241,090      $ 181,607      $ 185,755      $ 224,716      $ 257,147   

Interest portion of rent expense

     96,205        86,879        80,912        72,404        64,457   

Capitalized interest

     4,887        2,621        3,627        4,189        3,878   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 342,182      $ 271,107      $ 270,294      $ 301,309      $ 325,482   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     3.31        3.44        3.58        3.01        2.92