EXHIBIT 12

 

CB RICHARD ELLIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

 

     Year Ended December 31,
     2009     2008     2007    2006    2005

(Loss) income from continuing operations before provision for income taxes

    $ (645 )    $ (1,025,679 )    $ 592,389    $ 523,017    $ 358,385

Less: Equity (loss) income from unconsolidated subsidiaries

      (34,095 )      (80,130 )      64,939      33,300      38,425

(Loss) income from continuing operations attributable to non- controlling interests

      (60,979 )      (54,198 )      11,875      6,120      2,163

Add: Distributed earnings of unconsolidated subsidiaries

      13,509        23,867        117,196      29,384      24,997

Fixed charges

      278,379        236,533        220,213      120,963      103,995
                                    

Total earnings (loss) before fixed charges

    $ 386,317      $ (630,951 )    $ 852,984    $ 633,944    $ 446,789
                                    

Fixed charges:

             

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

    $ 59,978      $ 69,377      $ 57,222    $ 42,109    $ 40,328

Interest expense

      189,146        167,156        162,991      45,007      56,281

Write-off of financing costs

      29,255        —          —        33,847      7,386
                                    

Total fixed charges

    $ 278,379      $ 236,533      $ 220,213    $ 120,963    $ 103,995
                                    

Ratio of earnings to fixed charges

      1.39        N/A (2)      3.87      5.24      4.30
                                    

 

(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.