EX-7.1 8 v210510_ex7-1.htm
Computation of Ratio of Earnings to Fixed Charges
Exhibit 7.1

(CAD in millions)
  
Predecessor
      
Successor
  
   
Year Ended
    
Ten Months
Ended
      
Two Months
Ended
    
Year Ended
    
Year Ended
    
Year Ended
  
   
December 31
    
October 30
      
December 31
    
December 31
    
December 31
    
December 31
  
   
2006
    
2007
      
2007
    
2008
    
2009
    
2010
  
                                       
Earnings:
                                      
Income (loss) from continuing operations before income taxes, equity in net losses of affiliates and minority interests
     125.7       138.8         (66.2 )     (996.1 )     435.7       272.2  
Pre-tax dividends requirements
     (2.3 )     -         (2.6 )     (14.8 )     (19.9 )     (17.7 )
Fixed charges
     31.4       21.7         51.8       311.5       307.1       245.0  
Amortization of capitalized interest
     11.9       8.9         2.4       13.8       17.0       18.1  
Capitalized interest
     (12.2 )     (9.5 )       (5.4 )     (39.0 )     (19.4 )     (14.6 )
Earnings adjusted for fixed charges
     154.5       159.9         (20.0 )     (724.6 )     720.5       503.0  
                                                   
Fixed charges:
                                                  
Pre-tax preferred dividends
     2.3       -         2.6       14.8       19.9       (17.7 )
Interest expensed and capitalized, including amortization of capitalized expenses related to indebtedness
     24.6       18.1         47.5       286.5       278.6       255.4  
Portion or rent expense representative of interest (1)
     4.5       3.6         1.7       10.2       8.6       7.3  
Total fixed charges
     31.4       21.7         51.8       311.5       307.1       245.0  
                                                   
Ratio of earnings to fixed charges (2)
     4.9       7.4         -       -       2.3       2.1  
 
(1)
One quarter of rent expense is deemed to be representative of interest.
(2)
For purposes of calculating the ratio of earnings to fixed charges, earnings represent income from continuing operations before income taxes, less capitalized interest and pre-tax preferred dividends, plus amortization of capitalized interest and fixed charges.  Fixed charges include interest expense (including amortization of debt issuance costs), pre-tax preferred dividends, capitalized interest and the portion of operating rental expense that our management believes is representative of the interest component of rent expense.  The ratio of earnings to fixed charges is not presented for the two months ended December 31, 2007, and the year ended December 31, 2008 as the earnings were inadequate to cover fixed charges during those periods by $71.8 and $1,027.3 respectively.