Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
| Years Ended December 31, | ||||||||||||||||||||||||
| Six Months Ended June 30, 2012 |
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||
| Fixed charges (1): |
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| Total interest expense |
$ | 41,022 | $ | 150,010 | $ | 232,096 | $ | 427,312 | $ | 677,707 | $ | 838,072 | ||||||||||||
| Interest capitalized |
— | — | — | — | — | 357 | ||||||||||||||||||
| Interest portion of rental expense |
1,541 | 2,596 | 3,060 | 3,250 | 1,994 | 1,697 | ||||||||||||||||||
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| Total fixed charges |
$ | 42,563 | $ | 152,606 | $ | 235,156 | $ | 430,562 | $ | 679,701 | $ | 840,126 | ||||||||||||
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| Earnings: |
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| Net income (loss) from continuing operations before income taxes |
$ | 98,179 | $ | (15,081 | ) | $ | (161,324 | ) | $ | (774,530 | ) | $ | (458,714 | ) | $ | 214,486 | ||||||||
| Fixed charges |
42,563 | 152,606 | 235,156 | 430,562 | 679,701 | 840,126 | ||||||||||||||||||
| Less: Interest capitalized |
— | — | — | — | — | (357 | ) | |||||||||||||||||
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| Total earnings before fixed charges |
$ | 140,742 | $ | 137,525 | $ | 73,832 | $ | (343,968 | ) | $ | 220,987 | $ | 1,054,255 | |||||||||||
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| Ratio of earnings to fixed charges (2) |
3.3x | 0.9x | 0.3x | -0.8x | 0.3x | 1.3x | ||||||||||||||||||
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| (1) | Excludes interest related to the application of accounting for uncertain tax positions in accordance with the Income Taxes Topic of the Accounting Standards Codification |
| (2) | The earnings for the years ended December 31, 2011, 2010, 2009 and 2008 were inadequate to cover fixed charges. The coverage deficiencies for total fixed charges for the years ended December 31, 2011, 2010, 2009 and 2008 were $15.1 million, $161.3 million, $774.5 million and $458.7 million, respectively. |
| Balances | Balances | Scenarios | CapitalSource Inc - Consolidated |
Project | Total Cost Centers | |||||||||||||
| 2Q ‘12 | 1Q ‘12 | FY ‘11 | ||||||||||||||||
| Occupancy - Rent (58000) |
5,827,668.09 | 3,033,120.86 | 12,269,362.30 | |||||||||||||||
| Occupancy - Other rent (58020) |
53,333.30 | 99,236.71 | 156,712.05 | |||||||||||||||
| Interco rent - CS (58100) |
(0.02 | ) | 0.01 | (0.00 | ) | |||||||||||||
| Sublease Income (58200) |
(904,739.01 | ) | (511,850.12 | ) | (1,304,933.05 | ) | ||||||||||||
| CSE conv - Rent expense (69906) |
— | — | 200,695.96 | |||||||||||||||
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| Occupancy - Rent |
4,976,262.36 | 2,620,507.46 | 11,321,837.26 | |||||||||||||||
| Occupancy - Utilities (58010) |
186,468.43 | 514,241.33 | 2,505,224.79 | |||||||||||||||
| Occupancy - Repairs & maintenance (58030) |
671,956.21 | 159,999.97 | 870,851.82 | |||||||||||||||
| Occupancy - Janitor & gardener (58040) |
35,872.65 | 43,569.88 | 175,563.16 | |||||||||||||||
| Occupancy - Taxes (58050) |
88,114.15 | 216,093.16 | 153,790.05 | |||||||||||||||
| Occupancy - Other (58060) |
135,373.02 | 110,707.40 | 329,259.14 | |||||||||||||||
| Equipment - Rental (71250) |
63,782.09 | 45,578.47 | 239,469.25 | |||||||||||||||
| Equipment - Repair/Maintenance (71251) |
62,780.08 | 48,270.60 | 87,753.40 | |||||||||||||||
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| Occupancy - Other |
1,244,346.63 | 1,138,460.81 | 4,361,911.61 | |||||||||||||||
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| Occupancy |
6,220,608.99 | 3,758,968.27 | 15,683,748.87 | |||||||||||||||
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| No. | Name | Rent Expense | ||||||||||
| 75010 | Rent - 5404 Wisconsin |
4,830,541.17 | 4,830,541.17 | |||||||||
| 75011 | Straightline rent - 5404 Wisc |
65,929.47 | 65,929.47 | |||||||||
| 75012 | Deferred rent - 5404 Wisc |
131,636.81 | 131,636.81 | |||||||||
| 75013 | Rent - F&E - 5404 Wisc |
81,605.61 | 81,605.61 | |||||||||
| 75014 | Rent - OPEX - 5404 Wisc |
1,777,442.07 | — | |||||||||
| 75015 | Sublease rent - 5404 Wisc |
(454,871.97 | ) | (454,871.97 | ) | |||||||
| 75016 | Sublease strgtln - 5404 Wisc |
(498,132.82 | ) | (498,132.82 | ) | |||||||
| 75050 | Rent - miscellaneous offices |
266,472.35 | 266,472.35 | |||||||||
| 75051 | F&E - miscellaneous offices |
15,983.02 | 15,983.02 | |||||||||
| 75100 | Rent - Chevy Chase, MD |
1,136,843.44 | 1,136,843.44 | |||||||||
| 75105 | Straightline rent - Chevy Chas |
(25,998.25 | ) | (25,998.25 | ) | |||||||
| 75106 | Deferred rent - Chevy Chase |
(23,161.01 | ) | (23,161.01 | ) | |||||||
| 75110 | Rent - F&E Chevy Chase, MD |
27,525.28 | 27,525.28 | |||||||||
| 75115 | Rent - OPEX Chevy Chase, MD |
33,680.24 | — | |||||||||
| 75130 | Rent - Chevy Chase (CIG) |
149,280.02 | 149,280.02 | |||||||||
| 75131 | Sublease inc. - 2 Wisc. Circle |
(152,181.92 | ) | (152,181.92 | ) | |||||||
| 75132 | Deferred rent - 2 Wisc. Circle |
(27,495.72 | ) | (27,495.72 | ) | |||||||
| 75211 | Rent - Boston office |
90,412.71 | 90,412.71 | |||||||||
| 75212 | Utilities - Boston Office |
75.00 | — | |||||||||
| 75213 | Rent - F&E Boston Office |
1,139.02 | 1,139.02 | |||||||||
| 75300 | Rent - San Francisco, CA |
158,747.07 | 158,747.07 | |||||||||
| 75306 | Sublease income - SF office |
(172,250.62 | ) | (172,250.62 | ) | |||||||
| 75350 | Rent - Westlake Village, CA |
352,006.40 | 352,006.40 | |||||||||
| 75355 | Utilities - Westlake Vill., CA |
1,027.14 | — | |||||||||
| 75360 | Rent - F&E Westlake Vill., CA |
10,649.51 | 10,649.51 | |||||||||
| 75500 | Rent - Atlanta, GA |
77,182.10 | 77,182.10 | |||||||||
| 75505 | Rent - F&E Atlanta, GA |
6,400.54 | 6,400.54 | |||||||||
| 75550 | Rent - New York, NY |
1,009.16 | 1,009.16 | |||||||||
| 75555 | Rent - F&E New York, NY |
10,153.13 | 10,153.13 | |||||||||
| 75556 | OPEX - New York, NY |
85,416.27 | — | |||||||||
| 75558 | Rent - NY, NY (640 5th Avenue) |
846,592.03 | 846,592.03 | |||||||||
| 75600 | Rent - Buffalo, NY |
180,463.72 | 180,463.72 | |||||||||
| 75605 | Rent - F&E Buffalo, NY |
4,332.84 | 4,332.84 | |||||||||
| 75700 | Rent - Chicago, IL |
337,875.69 | 337,875.69 | |||||||||
| 75705 | Operating exp - Chicago, IL |
242,633.87 | — | |||||||||
| 75710 | Rent - F&E Chicago, IL |
16,532.20 | 16,532.20 | |||||||||
| 75711 | Utilities - Chicago, IL |
9,206.63 | — | |||||||||
| 75712 | Rent - Franklin, TN |
84,446.02 | 84,446.02 | |||||||||
| 75713 | Rent - F&E Franklin, TN |
4,352.76 | 4,352.76 | |||||||||
| 75715 | Rent - Nashville, TN |
63,429.69 | 63,429.69 | |||||||||
| 75717 | OPEX - Nashville, TN |
4,488.24 | — | |||||||||
| 75720 | Rent - Hartford, CT |
60,816.00 | 60,816.00 | |||||||||
| 75721 | Rent - F&E Hartford, CT |
4,937.30 | 4,937.30 | |||||||||
| 75750 | Rent - St. Louis, MO |
(27,040.44 | ) | (27,040.44 | ) | |||||||
| 75775 | Rent - Palm Desert, CA office |
7,155.00 | 7,155.00 | |||||||||
| 75776 | OPEX - El Segundo, CA |
635.81 | — | |||||||||
| 75780 | Rent - El Segundo, CA |
105,179.42 | 105,179.42 | |||||||||
| 75781 | Rent - F&E El Segundo, CA |
9,099.96 | 9,099.96 | |||||||||
| 75786 | Rent - Baltimore |
63,613.41 | 63,613.41 | |||||||||
| 75787 | Rent - F&E Baltimore |
7,352.61 | 7,352.61 | |||||||||
| 75788 | OPEX - Baltimore |
35.72 | — | |||||||||
| 75790 | Rent - London |
191,627.32 | 191,627.32 | |||||||||
| 75791 | Rent - F&E London |
9,068.64 | 9,068.64 | |||||||||
| 75792 | OPEX - London |
32,497.14 | — | |||||||||
| 75850 | Bank occupancy expenses |
4,950,093.21 | 4,950,093.21 | |||||||||
| 75997 | Repairs and maintenance |
313,506.32 | — | |||||||||
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| 75999 | Rent - office and equipment |
15,479,996.33 | 12,979,351.88 | |||||||||
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