EX-12 2 exhibit12-ratioofearningst.htm EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12
PULTEGROUP, INC.
RATIO OF EARNINGS TO FIXED CHARGES
($000’s omitted)

|  | Years Ended December 31,
|  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011
Earnings: |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before income taxes |  | $ | 816,023 |  |  | $ | 689,758 |  |  | $ | 527,822 |  |  | $ | 183,554 |  |  | $ | (310,300 | )
Fixed charges |  | 130,814 |  |  | 139,422 |  |  | 162,418 |  |  | 210,394 |  |  | 231,208 |
Amortization of capitalized interest |  | 138,141 |  |  | 194,728 |  |  | 255,065 |  |  | 224,291 |  |  | 189,382 |
Capitalized interest |  | (120,001 | ) |  | (131,444 | ) |  | (154,107 | ) |  | (201,103 | ) |  | (221,071 | )
Distributions in excess (less than) earnings of affiliates |  | (6,185 | ) |  | (3,476 | ) |  | 767 |  |  | 3,324 |  |  | 3,628 |
Income as adjusted |  | $ | 958,792 |  |  | $ | 888,988 |  |  | $ | 791,965 |  |  | $ | 420,460 |  |  | $ | (107,153 | )
Fixed charges: |  |  |  |  |  |  |  |  |  |
Interest expensed and capitalized |  | $ | 121,672 |  |  | $ | 131,069 |  |  | $ | 154,819 |  |  | $ | 202,395 |  |  | $ | 222,383 |
Portion of rents representative of interest factor |  | 9,142 |  |  | 8,353 |  |  | 7,599 |  |  | 7,999 |  |  | 8,825 |
Fixed charges |  | $ | 130,814 |  |  | $ | 139,422 |  |  | $ | 162,418 |  |  | $ | 210,394 |  |  | $ | 231,208 |
Ratio of earnings to fixed charges (a) |  | 7.3 |  |  | 6.4 |  |  | 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) | Earnings for year ended December 31, 2011 was inadequate to cover fixed charges. Additional earnings of $338.4 million would have been necessary to bring the ratio to 1.0.