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.