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  
    For the
Three
Months
Ended
March 31,		     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		  
    2011     2010     2010     2009     2008              

Earnings available to cover fixed charges:

                    

Income before income taxes and non-controlling interests

   $ (236 )    $ (190 )    $ 37      $ (310 )    $ (2,291 )    $ (1,234 )        $ (66 )    $ 604   

Less:

                    

Undistributed earnings of equity method investments

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

Interest on taxes

     1        1        (2 )      2        3        2            1        —     

Plus:

                    

Distributed earnings of equity method investments

     5        —          26        10        5        5            1        —     
                   

Fixed charges

     195        169        672        659        743        597            77        174   
                                                                   

Earnings available to cover fixed charges

   $ (37 )    $ (21 )    $ 767      $ 381      $ (1,574 )    $ (632 )        $ 12      $ 787   
                                                                   

Fixed charges (a)

                    

Interest, including amortization of deferred financing costs

   $ 180      $ 154      $ 613      $ 595      $ 670      $ 541          $ 56      $ 99   

Interest portion of rental payments

     15        15        59        64        73        56            21        75   
                                                                   

Total fixed charges

   $ 195        169      $ 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 $1 million and $2 million for the three months ended March 31, 2011 and 2010, respectively, and $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 $231 million for the three months ended March 31, 2011, $190 million for the three months ended March 31, 2010, $278 million for the year ended December 31, 2009, $2,317 million for the year ended December 31, 2008, $1,229 million for the period from April 10 to December 31, 2007, and by $65 million for the period from January 1 to April 9, 2007.