EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

CLEARWATER PAPER CORPORATION

Computation of Ratio of Earnings to Fixed Charges

(In thousands)

 

     Years Ended December 31,  
     2010     2009      2008      2007      2006  

Earnings before income taxes

    $ 76,196      $ 275,685       $ 15,337       $ 39,407       $ 33,263   

Add: Fixed charges

      27,382        20,248         17,648         17,489         18,156   

Subtract: Capitalized interest

      (480 )      —           —           —           —     
                                           

Earnings available for fixed charges

    $ 103,098      $ 295,933       $ 32,985       $ 56,896       $ 51,419   
                                           

Fixed charges:

              

Interest expense

    $ 22,571      $ 15,505       $ 13,147       $ 13,000       $ 13,000   

Capitalized interest

      480        —           —           —           —     

Rental expense factor 1

      4,331        4,743         4,501         4,489         5,156   
                                           

Total fixed charges

    $ 27,382      $ 20,248       $ 17,648       $ 17,489       $ 18,156   
                                           

Ratio of earnings to fixed charges

      3.8        14.6         1.9         3.3         2.8   
                                           

 

1

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

The ratio of earnings to fixed charges is computed by dividing income before taxes plus fixed charges by fixed charges. Fixed charges consist of interest expense and the estimated portion of rental expense deemed by us to be representative of the interest factor of rental payments under operating leases.