EX-12.1 2 kbh-11302016x10kexhibit121.htm FIXED CHARGE RATIO
EXHIBIT 12.1

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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratios)
| Years Ended November 30,
| 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Earnings |  |  |  |  |  |  |  |  |
Income (loss) from operations before income taxes | $ | 149,315 |  |  | $ | 127,043 |  |  | $ | 94,949 |  |  | $ | 38,363 |  |  | $ | (79,053 | )
Add: |  |  |  |  |  |  |  |  |
Interest incurred | 185,466 |  |  | 186,885 |  |  | 171,541 |  |  | 149,101 |  |  | 132,657 |
Amortization of premiums and discounts related to debt | 7,576 |  |  | 7,738 |  |  | 7,124 |  |  | 5,347 |  |  | 3,016 |
Portion of rent expense considered to be interest | 5,097 |  |  | 4,524 |  |  | 3,917 |  |  | 3,204 |  |  | 3,096 |
Amortization of previously capitalized interest | 161,285 |  |  | 143,255 |  |  | 90,804 |  |  | 87,414 |  |  | 78,630 |
Distribution of earnings from unconsolidated joint ventures, net of equity in income (loss) | 9,908 |  |  | 11,512 |  |  | (1,063 | ) |  | 2,882 |  |  | 1,519 |
Deduct: |  |  |  |  |  |  |  |  |
Interest capitalized | (179,566 | ) |  | (165,029 | ) |  | (140,791 | ) |  | (86,411 | ) |  | (62,853 | )
Income as adjusted | $ | 339,081 |  |  | $ | 315,928 |  |  | $ | 226,481 |  |  | $ | 199,900 |  |  | $ | 77,012 |
Fixed charges |  |  |  |  |  |  |  |  |
Interest incurred | $ | 185,466 |  |  | $ | 186,885 |  |  | $ | 171,541 |  |  | $ | 149,101 |  |  | $ | 132,657 |
Amortization of premiums and discounts related to debt | 7,576 |  |  | 7,738 |  |  | 7,124 |  |  | 5,347 |  |  | 3,016 |
Portion of rent expense considered to be interest | 5,097 |  |  | 4,524 |  |  | 3,917 |  |  | 3,204 |  |  | 3,096 |
Total fixed charges | $ | 198,139 |  |  | $ | 199,147 |  |  | $ | 182,582 |  |  | $ | 157,652 |  |  | $ | 138,769 |
Ratio of earnings to fixed charges | 1.71 | x |  | 1.59 | x |  | 1.24 | x |  | 1.27 | x |  | — |
Coverage deficiency (a) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (61,757 | )

The ratios of earnings to fixed charges are computed on a consolidated basis.

(a) | Earnings for the year ended November 30, 2012 were insufficient to cover fixed charges for the period by $61.8 million.