EX-12.1 10 d264660dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

ABITIBIBOWATER INC.

Computation of Ratio of Earnings to Fixed Charges

(In millions of dollars)

(Unaudited)

 

     Years Ended December 31,
       Successor      Predecessor
     2011      2010      2009     2008     2007       

Earnings (loss):

                 
 

Earnings (loss) before income taxes (a)

      $ 55             $ 1,169       $ (1,682 )    $ (2,299 )    $ (649 )   
 

Add: Fixed charges from below

      100               489         606        727        266     

Less: Capitalized interest

      (1)              –         (1 )      –        (1 )     
     $ 154             $ 1,658       $ (1,077 )    $ (1,572 )    $ (384 )     

Fixed Charges:

                 
 

Interest expense, net of interest capitalized

      $ 95             $ 469       $ 540      $ 594      $ 248     

Capitalized interest

      1               –         1        –        1     

Estimate of interest within rental expense

      4               6         8        10        9     

Amortized premium, discounts and deferred financing costs related to indebtedness

      –               14         57        123        8       
     $ 100             $ 489       $ 606      $ 727      $ 266       

Ratio of Earnings to Fixed Charges

      1.5x               3.4x         (b )      (b )      (b )     

 

(a) 

For the year ended December 31, 2008, loss before income taxes included an extraordinary loss on expropriation of assets of $256 million.

(b) 

For the years ended December 31, 2009, 2008 and 2007, earnings were inadequate to cover fixed charges, resulting in a deficiency of $1,683 million, $2,299 million and $650 million, respectively.