EX-12 3 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12

DOMUS HOLDINGS CORP. AND 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:

 

     As of and for
the six months
ended June 30,
 
     2011     2010  

Earnings available to cover fixed charges:

    

Income (loss) before income taxes and non-controlling interests

   $ (256   $ 150   

Less:

    

Undistributed earnings of equity method investments

     (4     (8

Interest on taxes

     1        1   

Plus:

    

Distributed earnings of equity method investments

     12        6   

Fixed charges

     371        339   
  

 

 

   

 

 

 

Earnings available to cover fixed charges

   $ 130      $ 502   
  

 

 

   

 

 

 

Fixed charges(a)

    

Interest, including amortization of deferred financing costs

   $ 342      $ 309   

Interest portion of rental payments

     29        30   
  

 

 

   

 

 

 

Total fixed charges

   $ 371      $ 339   
  

 

 

   

 

 

 

Ratio of earnings to fixed charges(b)

     —          1.5x   
  

 

 

   

 

 

 

 

(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 $3 million and $3 million for the six months ended June 30, 2011 and 2010, respectively.
(b) Our earnings were insufficient to cover fixed charges by approximately $241 million for the six months ended June 30, 2011.