Headwaters 10-Q 2012 Q3 Quarterly report

Exhibit 12

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

															Nine Months Ended
	Year Ended September 30,														June 30,
(in thousands)	2007		2008			2009			2010			2011			2012
Fixed Charges Computation
Interest expensed and capitalized (1)	$	29,231	$	23,092		$	33,961		$	55,908		$	106,557		$	29,492
Amortized premiums, discounts, and capitalized expenses related to indebtedness	9,075		8,747			13,459			16,027			20,069			12,687
Reasonable approximation of interest within rental expense	3,291		3,180			3,377			3,670			3,323			2,278
Total Fixed Charges and Preferred Equity Dividends	$	41,597	$	35,019		$	50,797		$	75,605		$	129,949		$	44,457
Earnings Computation
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	61,170	$	(166,432	)	$	(491,730	)	$	(46,390	)	$	(138,093	)	$	(21,597	)
Plus
Fixed charges	41,597		35,019			50,797			75,605			129,949			44,457
Minus
Interest capitalized	784		894			1,396			441			91			87
Total Earnings	$	101,983	$	(132,307	)	$	(442,328	)	$	28,774		$	(8,235	)	$	22,773
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends	2.45		N/A		*	N/A		*	0.38			N/A		*	0.51

*Total earnings for these periods were less than zero dollars.  The deficiency of earnings to fixed charges for the years ended September 30, 2008, 2009, and 2011 were $167.3 million, $493.1 million, and $138.2 million, respectively.

(1)Interest expense associated with unrecognized tax benefits is included in income tax expense, not with interest expense.