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,  
     2007    2006    2005    2004    2003  

Income (loss) before provision for income taxes

    $ 580,514    $ 516,897    $ 356,222    $ 108,254    $ (40,980 )

Less: Equity income from unconsolidated subsidiaries

      64,939      33,300      38,425      20,977      14,930  

Add: Distributed earnings of unconsolidated subsidiaries

      117,196      29,384      24,997      11,502      11,140  

Fixed charges

      220,213      120,963      103,995      126,190      112,207  
                                    

Total earnings before fixed charges

    $ 852,984    $ 633,944    $ 446,789    $ 224,969    $ 67,437  
                                    

Fixed charges:

               

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

    $ 57,222    $ 42,109    $ 40,328    $ 37,035    $ 26,409  

Interest expense

      162,991      45,007      56,281      68,080      72,319  

Loss on extinguishment of debt

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

Total fixed charges

    $ 220,213    $ 120,963    $ 103,995    $ 126,190    $ 112,207  
                                    

Ratio of earnings to fixed charges

      3.87      5.24      4.30      1.78      N/A (2)
                                    

 

(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.