EX-12 10 ex122014.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Ex 12 (2014)


Exhibit (12)
CLEARWATER PAPER CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
Years Ended December 31,
 
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings before income taxes
 
$
16,241

 
$
38,234

 
$
111,591

 
$
70,920

 
$
76,196

Add: Fixed charges
 
72,407

 
69,390

 
53,974

 
55,706

 
27,382

Subtract: Capitalized interest
 
—

 
—

 
(12,570
)
 
(3,705
)
 
(480
)
Earnings available for fixed charges
 
$
88,648

 
$
107,624

 
$
152,995

 
$
122,921

 
$
103,098

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense1
 
$
63,570

 
$
61,094

 
$
33,796

 
$
44,809

 
$
22,571

Rental expense factor 2
 
8,837

 
8,296

 
7,608

 
7,192

 
4,331

Capitalized interest
 
—

 
—

 
12,570

 
3,705

 
480

Total fixed charges
 
$
72,407

 
$
69,390

 
$
53,974

 
$
55,706

 
$
27,382

Ratio of earnings to fixed charges
 
1.2

 
1.6

 
2.8

 
2.2

 
3.8

1 
Interest expense, net for the years ended December 31, 2014 and 2013 includes debt retirement costs of $24.4 million and $17.1 million, respectively.
2 
“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 earnings available for fixed charges by fixed charges. Earnings available for fixed charges represent earnings before income taxes and fixed charges excluding capitalized interest. Fixed charges consist of interest expense, capitalized interest and the rental expense factor discussed above.