EXHIBIT 12
CB RICHARD ELLIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| Income (loss) from continuing operations before provision for income taxes |
$ | 272,057 | $ | (645 | ) | $ | (1,025,679 | ) | $ | 592,389 | $ | 523,017 | ||||||||
| Less: Equity income (loss) from unconsolidated subsidiaries |
26,561 | (34,095 | ) | (80,130 | ) | 64,939 | 33,300 | |||||||||||||
| Loss (income) from continuing operations attributable to non-controlling interests |
(49,777 | ) | (60,979 | ) | (54,198 | ) | 11,875 | 6,120 | ||||||||||||
| Add: Distributed earnings of unconsolidated subsidiaries |
33,874 | 13,509 | 23,867 | 117,196 | 29,384 | |||||||||||||||
| Fixed charges |
272,301 | 278,379 | 236,533 | 220,213 | 120,963 | |||||||||||||||
| Total earnings (loss) before fixed charges |
$ | 601,448 | $ | 386,317 | $ | (630,951 | ) | $ | 852,984 | $ | 633,944 | |||||||||
| Fixed charges: |
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| Portion of rent expense representative of the interest factor (1) |
$ | 63,002 | $ | 59,978 | $ | 69,377 | $ | 57,222 | $ | 42,109 | ||||||||||
| Interest expense |
191,151 | 189,146 | 167,156 | 162,991 | 45,007 | |||||||||||||||
| Write-off of financing costs |
18,148 | 29,255 | — | — | 33,847 | |||||||||||||||
| Total fixed charges |
$ | 272,301 | $ | 278,379 | $ | 236,533 | $ | 220,213 | $ | 120,963 | ||||||||||
| Ratio of earnings to fixed charges |
2.21 | 1.39 | N/A | (2) | 3.87 | 5.24 | ||||||||||||||
| (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. |