EXHIBIT 12
CB RICHARD ELLIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| Nine
Months Ended September 30, 2011 |
Year Ended December 31, | |||||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||
| Income (loss) from continuing operations before provision for income taxes |
$ | 279,507 | $ |
272,057 |
|
$ |
(645 |
) |
$ |
(1,025,679 |
) |
$ |
592,389 |
|
$ |
523,017 |
| |||||||
| Less: Equity income (loss) from unconsolidated subsidiaries |
|
38,961 |
|
|
26,561 |
|
|
(34,095 |
) |
|
(80,130 |
) |
|
64,939 |
|
|
33,300 |
| ||||||
| Income (loss) from continuing operations attributable to non-controlling interests |
3,076 |
|
(49,777 |
) |
|
(60,979 |
) |
|
(54,198 |
) |
|
11,875 |
|
|
6,120 |
| ||||||||
| Add: Distributed earnings of unconsolidated subsidiaries |
15,441 |
|
33,874 |
|
|
13,509 |
|
|
23,867 |
|
|
117,196 |
|
|
29,384 |
| ||||||||
| Fixed charges |
154,266 | 272,301 | 278,379 | 236,533 | 220,213 | 120,963 | ||||||||||||||||||
|
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|
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|
|
|
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| Total earnings (loss) before fixed charges |
$ | 407,177 | $ | 601,448 | $ | 386,317 | $ | (630,951 | ) | $ | 852,984 | $ | 633,944 | |||||||||||
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| Fixed charges: |
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| Portion of rent expense representative of the interest factor(1) |
$ | 47,252 | $ |
63,002 |
|
$ |
59,978 |
|
$ |
69,377 |
|
$ |
57,222 |
|
$ |
42,109 |
| |||||||
| Interest expense |
107,014 | 191,151 | 189,146 | 167,156 | 162,991 | 45,007 | ||||||||||||||||||
| Write-off of financing costs |
— | 18,148 | 29,255 | — | — | 33,847 | ||||||||||||||||||
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| Total fixed charges |
$ | 154,266 | $ | 272,301 | $ | 278,379 | $ | 236,533 | $ | 220,213 | $ | 120,963 | ||||||||||||
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| Ratio of earnings to fixed charges |
2.64 | 2.21 | 1.39 | N/A | (2) | 3.87 | 5.24 | |||||||||||||||||
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| (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. |