EX-12 4 ex1210k-q4x17.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,
 
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings before income taxes
 
$
40,954

 
$
80,666

 
$
92,488

 
$
16,241

 
$
38,234

Add: Fixed charges
 
44,256

 
41,396


40,021

 
72,407

 
69,390

Subtract: Capitalized interest
 
(4,633
)
 
(2,343
)
 
(396
)
 
—

 
—

Earnings available for fixed charges
 
$
80,577

 
$
119,719

 
$
132,113

 
$
88,648

 
$
107,624

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, net1
 
$
31,374

 
$
30,651

 
$
31,182

 
$
63,570

 
$
61,094

Rental expense factor 2
 
8,249

 
8,402

 
8,443

 
8,837

 
8,296

Capitalized interest
 
4,633

 
2,343

 
396

 
—

 
—

Total fixed charges
 
$
44,256

 
$
41,396

 
$
40,021

 
$
72,407

 
$
69,390

Ratio of earnings to fixed charges
 
1.8

 
2.9

 
3.3

 
1.2

 
1.6

1 
Interest expense, net for the years ended December 31, 2016, 2014 and 2013 includes debt retirement costs of $0.4 million, $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.