EX-12 5 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit (12)

POTLATCH CORPORATION

Computation of Ratio of Earnings to Fixed Charges

(In thousands)

 

        2007      2006      2005      2004      2003  

Earnings (loss) from continuing

operations before taxes on income

      87,177      108,341      53,044      28,647      (8,544 )

Add:

                         

Interest expense

      30,710      29,120      29,045      45,863      48,172  

Rental expense factor 1

      5,452      6,102      5,590      5,409      4,564  

Discount and loan expense amortization

      593      578      471      3,075      3,757  

Earnings available for fixed charges

      123,932      144,141      88,150      82,994      47,949  

Fixed charges:

                         

Interest expense

      30,710      29,120      29,045      45,863      48,172  

Capitalized interest

      —      —      —      383      2,907  

Rental expense factor 1

      5,452      6,102      5,590      5,409      4,564  

Discount and loan expense amortization

      593      578      471      3,075      3,757  

Total fixed charges

      36,755      35,800      35,106      54,730      59,400  

Ratio of earnings to fixed charges

      3.4      4.0      2.5      1.5      0.8  

 

 

1

“Rental expense factor” is the portion of rental expense estimated to be representative of the interest factor within rental expense.

The dollar amount of deficiency in earnings available for fixed charges for a one-to-one ratio for 2003 is $11,451.

Certain 2003-2006 amounts have been reclassified to conform to the 2007 presentation.