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. |