EX-12 6 ex122015q4.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit (12)
CLEARWATER PAPER CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
Years Ended December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings before income taxes
 
$
92,488

 
$
16,241

 
$
38,234

 
$
111,591

 
$
70,920

Add: Fixed charges
 
40,021

 
72,407

 
69,390

 
53,974

 
55,706

Subtract: Capitalized interest
 
(396
)
 
—

 
—

 
(12,570
)
 
(3,705
)
Earnings available for fixed charges
 
$
132,113

 
$
88,648

 
$
107,624

 
$
152,995

 
$
122,921

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, net1
 
$
31,182

 
$
63,570

 
$
61,094

 
$
33,796

 
$
44,809

Rental expense factor 2
 
8,443

 
8,837

 
8,296

 
7,608

 
7,192

Capitalized interest
 
396

 
—

 
—

 
12,570

 
3,705

Total fixed charges
 
$
40,021

 
$
72,407

 
$
69,390

 
$
53,974

 
$
55,706

Ratio of earnings to fixed charges
 
3.3

 
1.2

 
1.6

 
2.8

 
2.2

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.