EX-12.1 25 g26544exv12w1.htm EX-12.1 exv12w1
EXHIBIT 12.1
ABITIBIBOWATER INC.
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.