CBRE HOLDING, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
EXHIBIT 12.2
| Predecessor |
Predecessor |
Predecessor |
Predecessor |
Company |
Company |
Company |
Company |
Company |
Company |
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| CB Richard Ellis Services, Inc. |
CB Richard Ellis Services, Inc. |
CB Richard Ellis Services, Inc. |
CB Richard Ellis Services, |
CBRE Holding, Inc. |
CBRE Holding, Inc. |
CBRE Holding, Inc. |
CBRE Holding, Inc. |
CBRE Holding, Inc. |
CBRE Holding, Inc. |
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| Twelve Months Ended December 31, 1998 |
Twelve Months Ended December 31, 1999 |
Twelve Months Ended December 31, 2000 |
Period from January 1, 2001 through July 20, 2001 |
February 20, 2001 (inception) through December 31, 2001 |
Twelve Months Ended December 31, 2002 |
Six Months Ended June 30, 2002 |
Six Months Ended June 30, 2003 |
Pro Forma Twelve Months Ended December 31, 2002 |
Pro Forma Six Months Ended June 30, 2003 |
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| Income (loss) before provision for income taxes |
$ | 50,483 | $ | 39,461 | $ | 68,139 | $ | (32,910 | ) | $ | 35,442 | $ | 48,833 | $ | 2,654 | $ | 6,746 | $ | 46,585 | $ | (6,088 | ) | ||||||||||
| Less: Equity income from unconsolidated subsidiaries |
3,443 | 7,528 | 7,112 | 2,854 | 1,661 | 8,968 | 3,221 | 6,993 | 8,968 | 6,993 | ||||||||||||||||||||||
| Add: Distributed earnings of unconsolidated subsidiaries |
2,267 | 12,662 | 8,389 | 2,844 | 2,408 | 10,417 | 3,900 | 5,215 | 10,417 | 5,215 | ||||||||||||||||||||||
| Fixed charges |
42,089 | 56,524 | 59,985 | 31,063 | 38,618 | 83,019 | 42,180 | 45,113 | 122,622 | 62,089 | ||||||||||||||||||||||
| Total earnings before fixed charges |
$ | 91,396 | $ | 101,119 | $ | 129,401 | $ | (1,857 | ) | $ | 74,807 | $ | 133,301 | $ | 45,513 | $ | 50,081 | $ | 170,656 | $ | 54,223 | |||||||||||
| Fixed charges: |
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| Portion of rent expense representative of the interest factor (1) |
$ | 11,042 | $ | 17,156 | $ | 18,285 | $ | 10,760 | $ | 8,901 | $ | 22,518 | $ | 11,259 | $ | 13,849 | $ | 32,284 | $ | 19,001 | ||||||||||||
| Interest expense |
31,047 | 39,368 | 41,700 | 20,303 | 29,717 | 60,501 | 30,921 | 31,264 | 90,338 | 43,088 | ||||||||||||||||||||||
| Total fixed charges |
$ | 42,089 | $ | 56,524 | $ | 59,985 | $ | 31,063 | $ | 38,618 | $ | 83,019 | $ | 42,180 | $ | 45,113 | $ | 122,622 | $ | 62,089 | ||||||||||||
| Ratio of earnings to fixed charges |
2.17 | 1.79 | 2.16 | n/a | (2) | 1.94 | 1.61 | 1.08 | 1.11 | 1.39 | 0.87 | (3) | ||||||||||||||||||||
| (1) | Represents one-third of operating lease costs, which approximates the portion that relates to the interest portion. |
| (2) | The ratio of earnings to fixed charges was negative for the period from January 1, 2001 to July 20, 2001. Additional earnings of $32.9 million would be needed to have a one-to-one ratio. |
| (3) | Additional earnings of $7.9 million would be needed to have a one-to-one ratio of earnings to fixed charges. |