EX-12 4 exhibit12-ratioofearningst.htm RATIO OF EARNINGS TO FIXED CHARGES AT DECEMBER 31, 2013
EXHIBIT 12
PULTEGROUP, INC.
RATIO OF EARNINGS TO FIXED CHARGES
($000’s omitted)

|  | Years Ended December 31,
|  | 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009
Earnings: |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before income taxes |  | $ | 527,822 |  |  | $ | 183,554 |  |  | $ | (310,300 | ) |  | $ | (1,234,546 | ) |  | $ | (1,975,119 | )
Fixed charges |  | 162,418 |  |  | 210,394 |  |  | 231,208 |  |  | 281,582 |  |  | 261,303 |
Amortization of capitalized interest |  | 255,065 |  |  | 224,291 |  |  | 189,382 |  |  | 180,918 |  |  | 165,355 |
Capitalized interest |  | (154,107 | ) |  | (201,103 | ) |  | (221,071 | ) |  | (264,932 | ) |  | (234,700 | )
Distributions in excess (less than) earnings of affiliates |  | 767 |  |  | 3,324 |  |  | 3,628 |  |  | 2,601 |  |  | 31,195 |
Income as adjusted |  | $ | 791,965 |  |  | $ | 420,460 |  |  | $ | (107,153 | ) |  | $ | (1,034,377 | ) |  | $ | (1,751,966 | )
Fixed charges: |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 154,819 |  |  | $ | 202,395 |  |  | $ | 222,383 |  |  | $ | 269,296 |  |  | $ | 244,618 |
Portion of rents representative of interest factor |  | 7,599 |  |  | 7,999 |  |  | 8,825 |  |  | 12,286 |  |  | 16,079 |
Interest expense related to guaranteed debt of 50% or less owned affiliate (a) |  | — |  |  | — |  |  | — |  |  | — |  |  | 606 |
Fixed charges |  | $ | 162,418 |  |  | $ | 210,394 |  |  | $ | 231,208 |  |  | $ | 281,582 |  |  | $ | 261,303 |
Ratio of earnings to fixed charges (b) |  | 4.9 |  |  | 2.0 |  |  | — |  |  | — |  |  | — |

Note: The ratios of earnings to fixed charges set forth above are computed on a consolidated basis. Fixed charges are comprised of interest incurred, which includes imputed interest associated with the guaranteed debt of our 50% or less owned affiliates, as well as a portion of rent expense, which represents the estimated interest factor and amortization of debt expense.

(a) | Includes imputed interest related to certain guaranteed joint venture debt for which we have made or expect to make cash expenditures.

(b) | Earnings for years ended December 31, 2011, 2010, and 2009 were inadequate to cover fixed charges. Additional earnings of $0.3 billion, $1.3 billion, and $2.0 billion, respectively, would have been necessary to bring the ratio to 1.0.