EX-12.1 4 ex121.htm RATIO OF EARNINGS TO FIXED CHARGES 10k2012exhibit12.1


Exhibit 12.1
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 or for the Year
Ended December 31,
 
2012
 
2011
 
2010
 
2009
 
2008
Earnings available to cover fixed charges:
 
 
 
 
 
 
 
 
 
Income before income taxes and non-controlling interests
$
(501
)
 
$
(407
)
 
$
37

 
$
(310
)
 
$
(2,291
)
Less:
 
 
 
 
 
 
 
 
 
Undistributed earnings of equity method investments
(62
)
 
(26
)
 
(30
)
 
(24
)
 
28

Interest on taxes
(1
)
 
(1
)
 
(2
)
 
2

 
3

Plus:
 
 
 
 
 
 
 
 
 
Distributed earnings of equity method investments
43

 
21

 
26

 
10

 
5

Fixed charges
593

 
730

 
672

 
659

 
743

Earnings available to cover fixed charges
198

 
371

 
767

 
381

 
(1,574
)
 
 
 
 
 
 
 
 
 
 
Fixed charges (a)
 
 
 
 
 
 
 
 
 
Interest, including amortization of deferred financing costs
538

 
673

 
613

 
595

 
670

Interest portion of rental payments
55

 
58

 
59

 
64

 
73

Total fixed charges
$
593

 
$
731

 
$
672

 
$
659

 
$
743

Ratio of earnings to fixed charges (b)
—

 
—

 
1.1x

 
—

 
—

_______________
 
 
(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 $9 million, $6 million, $7 million, $12 million and $46 million for the years ended December 31, 2012, 2011, 2010, 2009 and 2008.
(b)
Our earnings were insufficient to cover fixed charges by approximately $395 million for the year ended December 31, 2012, $360 million for the year ended December 31, 2011, $278 million for the year ended December 31, 2009, and approximately $2,317 million for the year ended December 31, 2008.