EXHIBIT 12
CB RICHARD ELLIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| Year Ended December 31, | ||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||
| (Loss) income from continuing operations before provision for income taxes |
$ | (971,481 | ) | $ | 580,514 | $ | 516,897 | $ | 356,222 | $ | 108,254 | |||||
| Less: Equity (loss) income from unconsolidated subsidiaries |
(80,130 | ) | 64,939 | 33,300 | 38,425 | 20,977 | ||||||||||
| Add: Distributed earnings of unconsolidated subsidiaries |
23,867 | 117,196 | 29,384 | 24,997 | 11,502 | |||||||||||
| Fixed charges |
236,533 | 220,213 | 120,963 | 103,995 | 126,190 | |||||||||||
| Total (loss) earnings before fixed charges |
$ | (630,951 | ) | $ | 852,984 | $ | 633,944 | $ | 446,789 | $ | 224,969 | |||||
| Fixed charges: |
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| Portion of rent expense representative of the interest factor (1) |
$ | 69,377 | $ | 57,222 | $ | 42,109 | $ | 40,328 | $ | 37,035 | ||||||
| Interest expense |
167,156 | 162,991 | 45,007 | 56,281 | 68,080 | |||||||||||
| Loss on extinguishment of debt |
— | — | 33,847 | 7,386 | 21,075 | |||||||||||
| Total fixed charges |
$ | 236,533 | $ | 220,213 | $ | 120,963 | $ | 103,995 | $ | 126,190 | ||||||
| Ratio of earnings to fixed charges |
N/A | (2) | 3.87 | 5.24 | 4.30 | 1.78 | ||||||||||
| (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, 2008. Additional earnings of $867.5 million would be needed to have a one-to-one ratio of earnings to fixed charges. |