Attached files
EXHIBIT 12.1
ABITIBIBOWATER INC.
Computation of Ratio of Earnings to Fixed Charges
(In millions)
(Unaudited)
Computation of Ratio of Earnings to Fixed Charges
(In millions)
(Unaudited)
| Years Ended December 31, | ||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(Loss) earnings: |
||||||||||||||||||||
Loss before income taxes and cumulative
effect of accounting changes (1) |
$ | (1,682 | ) | $ | (2,299 | ) | $ | (649 | ) | $ | (111 | ) | $ | (91 | ) | |||||
Add: Fixed charges from below |
606 | 727 | 266 | 203 | 203 | |||||||||||||||
Less: Capitalized interest |
(1 | ) | — | (1 | ) | (4 | ) | (1 | ) | |||||||||||
| (1,077 | ) | (1,572 | ) | (384 | ) | 88 | 111 | |||||||||||||
Fixed Charges: |
||||||||||||||||||||
Interest expense, net of interest capitalized |
540 | 594 | 248 | 200 | 195 | |||||||||||||||
Capitalized interest |
1 | — | 1 | 4 | 1 | |||||||||||||||
Estimate of interest within rental expense |
8 | 10 | 9 | 3 | 3 | |||||||||||||||
Amortized premium and discounts related
to indebtedness |
57 | 123 | 8 | (4 | ) | 4 | ||||||||||||||
| 606 | 727 | 266 | 203 | 203 | ||||||||||||||||
Deficiency of Earnings to Fixed Charges (2) |
$ | 1,683 | $ | 2,299 | $ | 650 | $ | 115 | $ | 92 | ||||||||||
| (1) | For the year ended December 31, 2008, loss before income taxes and cumulative effect of accounting changes included an extraordinary loss on expropriation of assets of $256 million. | |
| (2) | For all periods presented, earnings were inadequate to cover fixed charges, resulting in a deficiency. |