EX-7.1 5 ncx-20131231exx71.htm EXHIBIT 7.1 NCX-2013.12.31 EX - 7.1
Exhibit 7.1
NOVA Chemicals Corporation
Computation of Ratio of Earnings to Fixed Charges
 
 
In accordance with International Financial Reporting Standards
 
In accordance with U.S. Generally Accepted Accounting Principles
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
July 6-
December 31
2009
 
January 1-
July 5
2009
 
 
2013
 
2012
 
2011
 
2010
 
 
(millions of U.S. dollars, unless otherwise noted)
 
Successor
 
Successor
 
Predecessor
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
658

 
$
545

 
$
600

 
$
229

 
$
9

 
$
(236
)
Adjustments for minority interest in losses of less than 100% owned affiliates and our equity in undistributed income (losses) of less than 50% owned equity investees
 
—

 
—

 
—

 
—

 
—

 
—

Income tax expense (recovery)
 
111

 
152

 
212

 
122

 
7

 
(62
)
Fixed charges
 
154

 
157

 
182

 
205

 
93

 
102

Capitalized interest, net of amortization of capitalized interest
 
(17
)
 
(4
)
 
—

 
—

 
(1
)
 
—

Total Earnings
 
$
906

 
850

 
994

 
556

 
108

 
(196
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
154

 
$
157

 
$
182

 
$
205

 
$
93

 
$
102

Total Fixed Charges
 
$
154

 
$
157

 
$
182

 
$
205

 
$
93

 
$
102

 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings to Fixed Charges Excess (Deficiency)
 
$
752

 
$
693

 
$
812

 
$
351

 
$
15

 
$
(298
)
Ratio of Earnings to Fixed Charges(1)(2)
 
5.9

 
5.4

 
5.5

 
2.7

 
1.2

 
N/A

(1)
For the purposes of calculating the ratio of earnings to fixed charges, “earnings” represent income from continuing operations adjusted for the minority interest in losses of less than 100% owned affiliates, equity in undistributed income or losses of less than 50% owned affiliates, income taxes and fixed charges, less capitalized interest, net of amortization of capitalized interest. “Fixed charges” include interest expense (including amortization of bond discounts and debt issue costs, capitalized interest and a representative portion of rental expense) and pre-tax earnings required to cover preferred stock dividends.
(2)
For the period January 1, 2009 to July 5, 2009, earnings were insufficient to cover fixed charges by approximately $298 million, and this ratio is not meaningful.


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