EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

REALOGY CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

The following table sets forth our ratio of earnings to fixed charges for the periods indicated:

 

     Successor            Predecessor  
     As of or For the Year
Ended December 31,		     For  the
Period
April  10
Through
December  31,
2007		            Period
From
January  1
Through
April 9,
2007		     For the Year
Ended
December 31,
2006		  
     2010     2009     2008           

Earnings available to cover fixed charges:

                  

Income before income taxes and non-controlling interests

    $ 37      $ (310 )    $ (2,291 )    $ (1,234 )         $ (66 )    $ 604   

Less:

                  

Undistributed earnings of equity method investments

      (30 )      (24 )      28        (2 )           (1 )      (9 ) 

Interest on taxes

      (2 )      2        3        2             1        —     

Plus:

                  

Distributed earnings of equity method investments

      26        10        5        5             1        —     

Fixed charges

      672        659        743        597             77        174   
                                                         

Earnings available to cover fixed charges

    $ 767      $ 381      $ (1,574 )    $ (632 )         $ 12      $ 787   
                                                         
 

Fixed charges (a)

                  

Interest, including amortization of deferred financing costs

    $ 613      $ 595      $ 670      $ 541           $ 56      $ 99   

Interest portion of rental payments

      59        64        73        56             21        75   
                                                         

Total fixed charges

   $ 672      $ 659      $ 743      $ 597           $ 77      $ 174   
                                                         
 

Ratio of earnings to fixed charges (b)

      1.1x        —          —          —               —          4.5x   
                                                     

 

(a) Consists of interest expense on all indebtedness and the portion of operating lease rental expense that is representative of the interest factor. Included in interest expense above is interest incurred related to the Company’s secured obligations. Interest related to these securitization obligations are recorded within net revenues on the consolidated and combined statements of operations as the related borrowings are utilized to fund advances within our relocation business where interest is earned on such advances. The interest related to these securitization obligations was $7 million, $12 million and $46 million for the years ended December 31, 2010, 2009, 2008, respectively, $45 million for the period from April 10 through December 31, 2007, $14 million for the period from January 1 through April 9, 2007 and $42 million for the year ended December 31, 2006

 

(b) Our earnings were insufficient to cover fixed charges by approximately $278 million for the year ended December 31, 2009, approximately $2,317 million for the year ended December 31, 2008, approximately $1,229 million for the period from April 10 to December 31, 2007, and by approximately $65 million for the period from January 1 to April 9, 2007.