Exhibit 12.1
MOMENTIVE SPECIALTY CHEMICALS INC.
Statement regarding Computation of Ratios
(Amounts in millions of dollars)
Year ended December 31, | Pro Forma Year ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2011 | |||||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or earnings from unconsolidated entities | $ | 103 | $ | 244 | $ | 137 | $ | (1,171 | ) | $ | (25 | ) | $ | 90 | ||||||||||
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Fixed Charges | ||||||||||||||||||||||||
Interest expensed and capitalized | 263 | 277 | 227 | 303 | 310 | 275 | ||||||||||||||||||
Interest element of lease costs(1) | 12 | 12 | 12 | 10 | 9 | 12 | ||||||||||||||||||
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Total fixed charges | 275 | 289 | 239 | 313 | 319 | 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 | 378 | 533 | 376 | (858 | ) | 294 | 377 | |||||||||||||||||
Ratio of earnings to fixed charges(2) | 1.37 | 1.84 | 1.57 | N/A | N/A | 1.31 | ||||||||||||||||||
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(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 by $1,171 and $25 for the years ended December 31, 2008 and 2007, respectively. |