EX-12 3 d270593dex12.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,  
     2011     2010     2009      2008      2007  

Earnings before income taxes

    $ 70,920      $ 76,196      $ 275,685       $ 15,337       $ 39,407   

Add: Fixed charges

      55,706        27,382        20,248         17,648         17,489   

Subtract: Capitalized interest

      (3,705 )      (480 )      —           —           —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Earnings available for fixed charges

    $ 122,921      $ 103,098      $ 295,933       $ 32,985       $ 56,896   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Fixed charges:

             

Interest expense

    $ 44,809      $ 22,571      $ 15,505       $ 13,147       $ 13,000   

Capitalized interest

      3,705        480        —           —           —     

Rental expense factor 1

      7,192        4,331        4,743         4,501         4,489   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total fixed charges

    $ 55,706      $ 27,382      $ 20,248       $ 17,648       $ 17,489   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      2.2        3.8        14.6         1.9         3.3   

 

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.