EX-12.1 7 rfp-20141231x10kexhibitx121.htm EXHIBIT 12.1 RFP-2014.12.31-10Kexhibit - 12.1

EXHIBIT 12.1

RESOLUTE FOREST PRODUCTS INC.
Computation of Ratio of Earnings to Fixed Charges
(In millions of dollars)
(Unaudited)

 
Years Ended December 31,
 
Successor
Predecessor
 
2014
 
 
2013
 
 
2012
 
 
2011
 
 
2010
 
 
(Loss) earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings before income taxes (a)
$
(304
)
 
$
(115
)
 
$
(72
)
 
$
64

 
$
1,156

 
Add: Fixed charges from below
 
52

 
 
57

 
 
72

 
 
100

 
 
489

 
Less: Capitalized interest
 
(3
)
 
 
(2
)
 
 
(2
)
 
 
(1
)
 
 
—

 
 
$
(255
)
 
$
(60
)
 
$
(2
)
 
$
163

 
$
1,645

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
42

 
$
48

 
$
66

 
$
95

 
$
469

 
Capitalized interest
 
3

 
 
2

 
 
2

 
 
1

 
 
—

 
Estimate of interest within rental expense
 
2

 
 
4

 
 
4

 
 
4

 
 
6

 
Amortized premium, discounts and deferred financing costs related to indebtedness
 
5

 
 
3

 
 
—

 
 
—

 
 
14

 
 
$
52

 
$
57

 
$
72

 
$
100

 
$
489

 
Ratio of Earnings to Fixed Charges
 
(a)

 
 
(a)

 
 
(a)

 
 
1.6x

 
 
3.4x

 

(a) 
For the years ended December 31, 2014, 2013 and 2012, earnings were inadequate to cover fixed charges, resulting in a deficiency of $307 million, $117 million and $74 million, respectively.