Exhibit 12.1
Novelis Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Fixed Charges
Three | April 1, | May 16, | Nine | Nine | |||||||||||||||||||||||||||||||||
Months | 2007 | 2007 | Year | Year | Months | Months | |||||||||||||||||||||||||||||||
Year Ended | Year Ended | Ended | Through | Through | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||||||
December 31, | December 31, | March 31, | May 15, | March 31, | March 31, | March 31, | December 31, | December 31, | |||||||||||||||||||||||||||||
2005 | 2006 | 2007 | 2007 | 2008 | 2009 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||
Predecessor | Predecessor | Predecessor | Predecessor | Successor | Successor | Successor | Successor | Successor | |||||||||||||||||||||||||||||
(In millions, except ratio amounts) | |||||||||||||||||||||||||||||||||||||
EARNINGS BEFORE FIXED CHARGES: | |||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations before cumulative effect of accounting change and extraordinary items | $ | 96 | $ | (275 | ) | $ | (64 | ) | $ | (97 | ) | $ | (53 | ) | $ | (1,910 | ) | $ | 405 | $ | 406 | $ | 66 | ||||||||||||||
Less: Equity income of non-consolidated affiliates | (6 | ) | (16 | ) | (3 | ) | (1 | ) | (25 | ) | 172 | 15 | 12 | 11 | |||||||||||||||||||||||
Plus: Dividends received from non-consolidated affiliates | — | 5 | — | 4 | — | — | 1 | — | — | ||||||||||||||||||||||||||||
Plus: Noncontrolling interest of subsidiaries that have fixed charges | 21 | 1 | 2 | (1 | ) | 4 | (12 | ) | 60 | 50 | 31 | ||||||||||||||||||||||||||
Earnings before fixed charges | $ | 111 | $ | (285 | ) | $ | (65 | ) | $ | (95 | ) | $ | (74 | ) | $ | (1,750 | ) | $ | 481 | $ | 468 | $ | 108 | ||||||||||||||
FIXED CHARGES: | |||||||||||||||||||||||||||||||||||||
Amount representative of interest factor in rentals | $ | 7 | $ | 7 | $ | 1 | $ | 1 | $ | 9 | $ | 8 | $ | 8 | $ | 6 | $ | 6 | |||||||||||||||||||
Interest expense and amortization of debt issuance costs | 203 | 221 | 54 | 27 | 214 | 182 | 175 | 131 | 125 | ||||||||||||||||||||||||||||
Interest expense from equity investees | (1 | ) | 1 | — | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||||||
Capitalized interests | 1 | 2 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total fixed charges | 210 | 231 | 55 | 28 | 222 | 190 | 183 | 137 | 131 | ||||||||||||||||||||||||||||
Less: Capitalized interests | (1 | ) | (2 | ) | — | — | — | — | — | — | $ | — | |||||||||||||||||||||||||
Fixed charges added to income (loss) | $ | 209 | $ | 229 | $ | 55 | $ | 28 | $ | 222 | $ | 190 | $ | 183 | $ | 137 | 131 | ||||||||||||||||||||
Plus: Amortization of capitalized interest | 7 | 9 | 1 | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Plus: Income taxes | 107 | (4 | ) | 7 | 4 | 83 | (246 | ) | 262 | 247 | 104 | ||||||||||||||||||||||||||
Earnings before fixed charges and income taxes | $ | 434 | $ | (51 | ) | $ | (2 | ) | $ | (65 | ) | $ | 231 | $ | (1,806 | ) | $ | 926 | $ | 852 | $ | 343 | |||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.1 | x | (A | ) | (A | ) | (A | ) | 1.0 | x | (A | ) | 5.1 | x | 6.2 | x | 2.6 | x | |||||||||||||||||||
(A) | Due to losses incurred, the ratio coverage was less than 1:1 for each of the periods presented below. The table below presents the amount of additional earnings required to bring the fixed charge ratio to 1:1 for each respective period. |
Three | |||||||||||||||||
Months | April 1, 2007 | ||||||||||||||||
Year Ended | Ended | Through | Year Ended | ||||||||||||||
December 31, | March 31, | May 15, | March 31, | ||||||||||||||
2006 | 2007 | 2007 | 2009 | ||||||||||||||
(In millions) | Predecessor | Predecessor | Predecessor | Successor | |||||||||||||
Additional earnings required to bring fixed charge ratio to 1:1 | $ | 280 | $ | 57 | $ | 93 | $ | 1,996 |