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: |
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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. |