Exhibit 12.1
MOMENTIVE SPECIALTY CHEMICALS INC.
Statement regarding Computation of Ratios
(Amounts in millions of dollars)
Pro forma Year ended December 31, 2010 | Year ended December 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or earnings from unconsolidated entities | $ | 266 | $ | 243 | $ | 134 | $ | (1,180 | ) | $ | (11 | ) | $ | (85 | ) | |||||||||
Fixed Charges | ||||||||||||||||||||||||
Interest expensed and capitalized | 284 | 277 | 227 | 303 | 310 | 245 | ||||||||||||||||||
Interest element of lease costs(1) | 12 | 12 | 12 | 13 | 10 | 9 | ||||||||||||||||||
Preferred stock dividend requirements of consolidated subsidiaries | — | — | — | — | — | 33 | ||||||||||||||||||
Total fixed charges | 296 | 289 | 239 | 316 | 320 | 287 | ||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or earnings from unconsolidated entities plus fixed charges, less preferred stock dividend requirements of consolidated subsidiaries | 562 | 532 | 373 | (864 | ) | 309 | 169 | |||||||||||||||||
Ratio of earnings to fixed charges(2) | 1.90 | 1.84 | 1.56 | N/A | N/A | N/A | ||||||||||||||||||
(1) | The interest element of lease costs has been calculated as 1/3 of the rental expense relating to operating leases as management believes this represents the interest portion hereof. |
(2) | Our earnings were insufficient to cover fixed charges and preferred stock dividend requirements by $1,180, $11 and $118 for the years ended December 31, 2008, 2007 and 2006, respectively. |