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 |
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Less: Equity income (loss) from unconsolidated subsidiaries |
| 38,961 |
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| 26,561 |
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| (34,095 | ) |
| (80,130 | ) |
| 64,939 |
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| 33,300 |
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Income (loss) from continuing operations attributable to non-controlling interests | 3,076 |
| (49,777 | ) |
| (60,979 | ) |
| (54,198 | ) |
| 11,875 |
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| 6,120 |
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Add: Distributed earnings of unconsolidated subsidiaries | 15,441 |
| 33,874 |
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| 13,509 |
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| 23,867 |
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| 117,196 |
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| 29,384 |
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Fixed charges | 154,266 | 272,301 | 278,379 | 236,533 | 220,213 | 120,963 | ||||||||||||||||||
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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: | ||||||||||||||||||||||||
Portion of rent expense representative of the interest factor(1) | $ | 47,252 | $ | 63,002 |
| $ | 59,978 |
| $ | 69,377 |
| $ | 57,222 |
| $ | 42,109 |
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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. |