CBRE (CBRE) 10-K 2007 FY Annual report

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:
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.