EXHIBIT 12
Bowater Incorporated
Statement of Computation of Unaudited Ratio of Earnings to Fixed Charges
(in millions, except ratio information)
Nine months ended
Year ended and at December 31, September 30,
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1996 1997 1998 1999 2000 2000 2001
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EARNINGS:
Income before income taxes and minority interests $353.2 $ 89.5 $ 15.6 $155.8 $239.2 $169.1 $162.1
Add: Fixed charges from below 74.5 70.2 110.5 145.9 153.6 111.8 119.9
Less: Capitalized interest 0.3 0.6 4.5 4.9 3.5 2.0 7.1
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$427.4 $159.1 $121.6 $296.8 $389.3 $278.9 $274.9
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FIXED CHARGES:
Interest expense, net of interest capitalized 71.3 67.5 98.4 126.7 135.2 98.8 102.7
Capitalized interest 0.3 0.6 4.5 4.9 3.5 2.0 7.1
Estimate of interest within rental expense 2.9 2.1 3.1 3.9 2.1 1.6 1.8
Amortized premium and discounts related to
indebtedness - - 4.5 10.4 12.8 9.4 8.3
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$ 74.5 $ 70.2 $110.5 $145.9 $153.6 $111.8 $119.9
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RATIO OF EARNINGS TO FIXED CHARGES 5.7x 2.3x 1.1x 2.0x 2.5x 2.5x 2.3x
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