EX-12.1 2 dex121.htm STATEMENTS REGARDING COMPUTATION OF RATIOS Statements Regarding Computation of Ratios

 

Exhibit 12.1

Plum Creek Timber Company, Inc.

Ratio of Earnings to Fixed Charges

 

           Years Ended December 31,  

(Dollars in Millions)

    9 Months
Ended
September 30, 2010		     2009     2008     2007     2006      2005  

Consolidated Pretax Income from Continuing Operations

    $ 99      $ 150      $ 193      $ 279      $ 328       $ 339   

Fixed Charges (per below)

      106        153        158        155        140         119   

Distributed Income of Equity Investees

      56        53        —          —          —           —     

Interest Capitalized

      (1 )      (1 )      (1 )      (1 )      —           —     
                                                 

Earnings

    $ 260      $ 355      $ 350      $ 433      $ 468       $ 458   
                                                 

Interest and Other Financial Charges

    $ 104      $ 150      $ 154      $ 151      $ 138       $ 118   

Interest Portion of Rental Expense

      2        3        4        4        2         1   
                                                 

Fixed Charges

    $ 106      $ 153      $ 158      $ 155      $ 140       $ 119   
                                                 

Ratio of Earnings to Fixed Charges

      2.5        2.3        2.2        2.8        3.3         3.8   
                                                 

Plum Creek Timberlands, L.P.

Ratio of Earnings to Fixed Charges

 

           Years Ended December 31,  

(Dollars in Millions)

    9 Months
Ended
September 30, 2010		     2009     2008     2007     2006      2005  

Consolidated Pretax Income from Continuing Operations

    $ 142      $ 208      $ 207      $ 279      $ 328       $ 339   

Fixed Charges (per below)

      63        95        144        155        140         119   

Distributed Income of Equity Investees

      56        53        —          —          —           —     

Interest Capitalized

      (1 )      (1 )      (1 )      (1 )      —           —     
                                                 

Earnings

    $ 260      $ 355      $ 350      $ 433      $ 468       $ 458   
                                                 

Interest and Other Financial Charges

    $ 61      $ 92      $ 140      $ 151      $ 138       $ 118   

Interest Portion of Rental Expense

      2        3        4        4        2         1   
                                                 

Fixed Charges

    $ 63      $ 95      $ 144      $ 155      $ 140       $ 119   
                                                 

Ratio of Earnings to Fixed Charges

      4.1        3.7        2.4        2.8        3.3         3.8   
                                                 

During 2008, PC Ventures I, LLC (“PC Ventures”), a 100% wholly-owned subsidiary of Plum Creek Timber Company, Inc., made a $783 million capital contribution to Plum Creek Timberlands, L.P. in exchange for a Series T-1 Redeemable Preferred Limited Partnership Interest (“Series T-1 Preferred Interest”), a preferred interest in Plum Creek Timberlands, L.P. The Series T-1 Preferred Interest provides for a return of 7.375% per annum (approximately $58 million) on its contributed capital of $783 million. In the computation of the ratio of earnings to fixed charges for Plum Creek Timberlands, L.P. above, the Series T-1 Preferred Interest is not subtracted from Consolidated Pretax Income from Continuing Operations and has been excluded from the calculation of Fixed Charges because these transactions are between affiliated entities. Further discussion of the Series T-1 Preferred Interest in Plum Creek Timberlands, L.P. can be found in the audited consolidated financial statements of Plum Creek Timberlands, L.P. for the three years ended December 31, 2009, which were included on Form 10-K of Plum Creek Timber Company, Inc. and filed with the SEC on February 25, 2010.