EXHIBIT 12

 

CB RICHARD ELLIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

(Dollars in thousands)

 

     Year ended December 31,

     2006

   2005

   2004

   2003

    2002

Income (loss) before provision for income taxes

   $ 516,897    $ 356,222    $ 108,254    $ (40,980 )   $ 48,833

Less: Equity income from unconsolidated subsidiaries

     33,300      38,425      20,977      14,930       8,968

Add: Distributed earnings of unconsolidated subsidiaries

     29,384      24,997      11,502      11,140       10,417

Fixed charges

     120,963      103,995      126,190      112,207       83,019
    

  

  

  


 

Total earnings before fixed charges

   $ 633,944    $ 446,789    $ 224,969    $ 67,437     $ 133,301
    

  

  

  


 

Fixed charges:

                                   

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

   $ 42,109    $ 40,328    $ 37,035    $ 26,409     $ 22,518

Interest expense

     45,007      56,281      68,080      72,319       60,501

Loss on extinguishment of debt

     33,847      7,386      21,075      13,479       —  
    

  

  

  


 

Total fixed charges

   $ 120,963    $ 103,995    $ 126,190    $ 112,207     $ 83,019
    

  

  

  


 

Ratio of earnings to fixed charges

     5.24      4.30      1.78      N/A (2)     1.61
    

  

  

  


 


(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 year ended December 31, 2003. Additional earnings of $44.8 million would be needed to have a one-to-one ratio of earnings to fixed charges.