EXHIBIT 12.2

 

CBRE HOLDING, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

(Dollars in thousands)

 

     Predecessor
    Predecessor
    Predecessor
    Predecessor
     Company
    Company
    Company
    Company
     Company
     Company
  
     CB Richard
Ellis
Services, Inc.
    CB Richard
Ellis
Services, Inc.
    CB Richard
Ellis
Services, Inc.
    CB Richard
Ellis
Services, Inc.
     CBRE
Holding, Inc.
    CBRE
Holding, Inc.
    CBRE
Holding, Inc.
    CBRE
Holding, Inc.
     CBRE
Holding, Inc.
     CBRE
Holding, Inc.
  
     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
    Nine Months
Ended
September 30,
2002
    Nine Months
Ended
September 30,
2003
     Pro Forma
Twelve
Months
Ended
December 31,
2002
     Pro Forma
Nine Months
Ended
September 30,
2003
  

Income (loss) before provision for income taxes

    $ 50,483    $ 39,461    $ 68,139    $ (32,910 )   $ 35,442    $ 48,833    $ 10,226    $ (40,079 )   $ (12,660 )   $ (30,370 )

Less: Equity income from unconsolidated subsidiaries

      3,443      7,528      7,112      2,854       1,661      8,968      5,880      9,795       8,968       9,795  

Add: Distributed earnings of unconsolidated subsidiaries

      2,267      12,662      8,389      2,844       2,408      10,417      8,474      8,051       10,417       8,051  

Fixed charges

      42,089      56,524      59,985      31,063       38,618      83,019      63,230      80,292       122,622       98,342  
    
  
  
  
 
  
  
  
 
 

Total earnings before fixed charges

    $ 91,396    $ 101,119    $ 129,401    $ (1,857 )   $ 74,807    $ 133,301    $ 76,050    $ 38,469     $ 111,411     $ 66,228  
    
  
  
  
 
  
  
  
 
 

Fixed charges:

                                                                           

Portion of rent expense representative of the interest factor (1)

    $ 11,042    $ 17,156    $ 18,285    $ 10,760     $ 8,901    $ 22,518    $ 16,889    $ 20,773     $ 32,284     $ 26,583  

Interest expense

      31,047      39,368      41,700      20,303       29,717      60,501      46,341      59,519       90,338       71,759  
    
  
  
  
 
  
  
  
 
 

Total fixed charges

    $ 42,089    $ 56,524    $ 59,985    $ 31,063     $ 38,618    $ 83,019    $ 63,230    $ 80,292     $ 122,622     $ 98,342  
    
  
  
  
 
  
  
  
 
 

Ratio of earnings to fixed charges

      2.17      1.79      2.16      n/a (2)     1.94      1.61      1.20      0.48 (3)     0.91 (4)     0.67 (5)
    
  
  
  
 
  
  
  
 
 

 

(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 $41.8 million would be needed to have a one-to-one ratio of earnings to fixed charges.

 

(4) Additional earnings of $11.2 million would be needed to have a one-to-one ratio of earnings to fixed charges.

 

(5) Additional earnings of $32.1 million would be needed to have a one-to-one ratio of earnings to fixed charges.