EX-12.1
Published on February 11, 2011
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 | |||||||||