Attached files
EXHIBIT 12.1
ABITIBIBOWATER INC.
Computation of Ratio of Earnings to Fixed Charges
(In millions of dollars)
(Unaudited)
Computation of Ratio of Earnings to Fixed Charges
(In millions of dollars)
(Unaudited)
Predecessor | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Earnings (loss): |
||||||||||||||||||||
Earnings (loss) before income taxes and
cumulative effect of accounting changes
(a) |
$ | 1,169 | $ | (1,682 | ) | $ | (2,299 | ) | $ | (649 | ) | $ | (111 | ) | ||||||
Add: Fixed charges from below |
489 | 606 | 727 | 266 | 203 | |||||||||||||||
Less: Capitalized interest |
| (1 | ) | | (1 | ) | (4 | ) | ||||||||||||
$ | 1,658 | $ | (1,077 | ) | $ | (1,572 | ) | $ | (384 | ) | $ | 88 | ||||||||
Fixed Charges: |
||||||||||||||||||||
Interest expense, net of interest capitalized |
$ | 469 | $ | 540 | $ | 594 | $ | 248 | $ | 200 | ||||||||||
Capitalized interest |
| 1 | | 1 | 4 | |||||||||||||||
Estimate of interest within rental expense |
6 | 8 | 10 | 9 | 3 | |||||||||||||||
Amortized premium and discounts related to
indebtedness |
14 | 57 | 123 | 8 | (4 | ) | ||||||||||||||
$ | 489 | $ | 606 | $ | 727 | $ | 266 | $ | 203 | |||||||||||
Ratio of Earnings to Fixed Charges |
3.4 | x | (b | ) | (b | ) | (b | ) | (b | ) | ||||||||||
(a) | 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. | |
(b) | For the years ended December 31, 2009, 2008, 2007 and 2006, earnings were inadequate to cover fixed charges, resulting in a deficiency of $1,683 million, $2,299 million, $650 million and $115 million, respectively. |