CBRE HOLDING, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
EXHIBIT 12.2
| Predecessor | Predecessor | Predecessor | Predecessor | Company | Company | Company | Company | Company | Company | |||||||||||||||||||||||
CB Richard Ellis Services, Inc. | CB Richard Ellis Services, Inc. | CB Richard Ellis Services, Inc. | CB Richard Ellis Services, | CBRE Holding, Inc. | CBRE Holding, Inc. | CBRE Holding, Inc. | CBRE Holding, Inc. | CBRE Holding, Inc. | CBRE Holding, Inc. | |||||||||||||||||||||||
| Twelve Months Ended December 31, 1998 | Twelve Months Ended December 31, 1999 | Twelve Months Ended December 31, 2000 | Period from January 1, 2001 through July 20, 2001 | February 20, 2001 (inception) through December 31, 2001 | Twelve Months Ended December 31, 2002 | Six Months Ended June 30, 2002 | Six Months Ended June 30, 2003 | Pro Forma Twelve Months Ended December 31, 2002 | Pro Forma Six Months Ended June 30, 2003 | |||||||||||||||||||||||
Income (loss) before provision for income taxes | $ | 50,483 | $ | 39,461 | $ | 68,139 | $ | (32,910 | ) | $ | 35,442 | $ | 48,833 | $ | 2,654 | $ | 6,746 | $ | 46,585 | $ | (6,088 | ) | ||||||||||
Less: Equity income from unconsolidated subsidiaries | 3,443 | 7,528 | 7,112 | 2,854 | 1,661 | 8,968 | 3,221 | 6,993 | 8,968 | 6,993 | ||||||||||||||||||||||
Add: Distributed earnings of unconsolidated subsidiaries | 2,267 | 12,662 | 8,389 | 2,844 | 2,408 | 10,417 | 3,900 | 5,215 | 10,417 | 5,215 | ||||||||||||||||||||||
Fixed charges | 42,089 | 56,524 | 59,985 | 31,063 | 38,618 | 83,019 | 42,180 | 45,113 | 122,622 | 62,089 | ||||||||||||||||||||||
Total earnings before fixed charges | $ | 91,396 | $ | 101,119 | $ | 129,401 | $ | (1,857 | ) | $ | 74,807 | $ | 133,301 | $ | 45,513 | $ | 50,081 | $ | 170,656 | $ | 54,223 | |||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||||
Portion of rent expense representative of the interest factor (1) | $ | 11,042 | $ | 17,156 | $ | 18,285 | $ | 10,760 | $ | 8,901 | $ | 22,518 | $ | 11,259 | $ | 13,849 | $ | 32,284 | $ | 19,001 | ||||||||||||
Interest expense | 31,047 | 39,368 | 41,700 | 20,303 | 29,717 | 60,501 | 30,921 | 31,264 | 90,338 | 43,088 | ||||||||||||||||||||||
Total fixed charges | $ | 42,089 | $ | 56,524 | $ | 59,985 | $ | 31,063 | $ | 38,618 | $ | 83,019 | $ | 42,180 | $ | 45,113 | $ | 122,622 | $ | 62,089 | ||||||||||||
Ratio of earnings to fixed charges | 2.17 | 1.79 | 2.16 | n/a | (2) | 1.94 | 1.61 | 1.08 | 1.11 | 1.39 | 0.87 | (3) | ||||||||||||||||||||
| (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 period from January 1, 2001 to July 20, 2001. Additional earnings of $32.9 million would be needed to have a one-to-one ratio. |
| (3) | Additional earnings of $7.9 million would be needed to have a one-to-one ratio of earnings to fixed charges. |