Headwaters 10-Q 2015 Q2 Quarterly report

Exhibit 12

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

														Six Months ended
(dollars in thousands)	Year Ended September 30,													March 31,
	2010			2011			2012			2013		2014		2015
Fixed Charges Computation
Interest expensed and capitalized (1)	$	55,908		$	106,557		$	38,809		$	37,100	$	44,768	$	43,229
Amortized premiums, discounts, and capitalized expenses related to indebtedness	16,027			20,069			14,184			5,841		2,175		5,042
Reasonable approximation of interest within rental expense	3,670			3,323			3,106			3,454		3,342		1,699
Total Fixed Charges and Preferred Equity Dividends	$	75,605		$	129,949		$	56,099		$	46,395	$	50,285	$	49,970
Earnings Computation
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	(46,390	)	$	(138,093	)	$	(16,454	)	$	12,209	$	20,576	$	(20,583	)
Plus
Fixed charges	75,605			129,949			56,099			46,395		50,285		49,970
Minus
Interest capitalized	441			91			137			192		427		299
Total Earnings	$	28,774		$	(8,235	)	$	39,508		$	58,412	$	70,434	$	29,088
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends	0.38			N/A *			0.70			1.26		1.40		0.58

*Total earnings for this period was less than zero dollars.  The deficiency of earnings to fixed charges for the year ended September 30, 2011 was $138.2 million.

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