UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended December 31, 2006
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
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Commission file number 1-8712
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
BOWATER INCORPORATED SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
BOWATER INCORPORATED
P. O. Box 1028
55 East Camperdown Way
Greenville, SC 29602
REQUIRED INFORMATION
1. Report of Independent Registered Public Accounting Firm
2. Statements of Net Assets Available for Benefits as of December 31,
2006 and 2005
3. Statements of Changes in Net Assets Available for Benefits for the
years ended December 31, 2006 and 2005
4. Notes to Financial Statements
5. Supplemental Schedule - Schedule H, Line 4i - Schedule of Assets (Held
at End of Year)
6. Exhibits:
a. Exhibit 23 - Consent of Independent Registered Public Accounting
Firm
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
BOWATER INCORPORATED SAVINGS PLAN
(Name of Plan)
/s/ Aaron B. Whitlock
----------------------------------
Date: June 29, 2007 Aaron B. Whitlock
Director, Human Resources
Bowater Incorporated
(Plan Administrator)
BOWATER INCORPORATED SAVINGS PLAN
Financial Statements and Supplemental Schedule
December 31, 2006 and 2005
(With Report of Independent Registered Public Accounting Firm Thereon)
BOWATER INCORPORATED SAVINGS PLAN
Index
Page
Report of Independent Registered Public Accounting Firm 1
Financial Statements:
Statements of Net Assets Available for Benefits as of
December 31, 2006 and 2005 2
Statements of Changes in Net Assets Available for Benefits
for the years ended December 31, 2006 and 2005 3
Notes to Financial Statements 4
Supplemental Schedule:
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) -
December 31, 2006 10
Exhibits
Consent of Independent Registered Public Accounting Firm Exhibit 23
Schedules not filed herewith are omitted because of the absence of conditions
under which they are required.
Report of Independent Registered Public Accounting Firm
The Board of Directors
Bowater Incorporated
We have audited the accompanying statements of net assets available for benefits
of the Bowater Incorporated Savings Plan (the Plan) as of December 31, 2006 and
2005, and the related statements of changes in net assets available for benefits
for the years then ended. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Bowater
Incorporated Savings Plan as of December 31, 2006 and 2005, and the changes in
net assets available for benefits for the years then ended in conformity with
U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedule of
assets (held at end of year) as of December 31, 2006 is presented for purposes
of additional analysis and is not a required part of the financial statements
but is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
As discussed in Note 2 to the financial statements, the Plan adopted Financial
Accounting Standards Board Staff Position AAG INV-1 and SOP No. 94-4-1,
Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain
Investment Companies Subject to the AICPA Investment Company Guide and
Defined-Contribution Health and Welfare Pension Plans, as of December 31, 2006
and 2005.
/s/ KPMG LLP
Greenville, South Carolina
June 29, 2007
1
BOWATER INCORPORATED SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 2006 and 2005
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2006 2005
------------------------------------------------------------------------------------------------------
ASSETS
Investments (at fair value):
Mutual funds $ 163,971,833 $ 152,886,272
Bowater common stock 23,347,063 36,833,371
Participant notes receivable 7,792,673 8,203,758
Interest-bearing cash 6,132,408 2,111,167
Fixed income fund 158,943,746 165,507,159
------------------------------------------------------------------------------------------------------
360,187,723 365,541,727
Receivables:
Employer's contribution - 410,878
Other 748,377 453,611
------------------------------------------------------------------------------------------------------
748,377 864,489
Cash 108,605 662,259
------------------------------------------------------------------------------------------------------
Total assets 361,044,705 367,068,475
LIABILITIES
Accounts payable 46,825 52,647
Other 850,535 275,902
------------------------------------------------------------------------------------------------------
Total liabilities 897,360 328,549
Net assets available for benefits at fair value $ 360,147,345 $ 366,739,926
Adjust fully benefit-responsive investment
contracts in the Fixed Income
Fund from fair value to contract
value 1,820,114 1,883,993
------------------------------------------------------------------------------------------------------
Net assets available for benefits $ 361,967,459 $ 368,623,919
------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
2
BOWATER INCORPORATED SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 2006 and 2005
------------------------------------------------------------------------------------------------------------------------------------
2006 2005
------------------------------------------------------------------------------------------------------------------------------------
Additions (reductions) to net assets attributed to:
Investment income:
Net depreciation in fair value of investments $ (4,351,868) $ (7,181,782)
Interest and dividends 23,400,041 13,817,413
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 19,048,173 6,635,631
Contributions:
Employer's 5,264,530 7,245,563
Participants' 16,634,851 16,227,628
Rollovers 187,621 622,312
-----------------------------------------------------------------------------------------------------------------------------------
Total contributions 22,087,002 24,095,503
------------------------------------------------------------------------------------------------------------------------------------
Total additions 41,135,175 30,731,134
Deductions from net assets attributed to:
Benefits paid to participants 47,771,284 40,950,658
Administrative expenses 20,351 27,644
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Total deductions 47,791,635 40,978,302
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Net change in net assets available for benefits (6,656,460) (10,247,168)
Net assets available for benefits:
Beginning of year 368,623,919 378,871,087
------------------------------------------------------------------------------------------------------------------------------------
End of year $ 361,967,459 $ 368,623,919
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
3
BOWATER INCORPORATED SAVINGS PLAN
Notes to Financial Statements
December 31, 2006 and 2005
(1) Description of the Plan
The following description of the Bowater Incorporated Savings Plan (Plan)
provides only general information. Participants should refer to the Plan
document for a more complete description of the Plan's provisions.
(a) General
The Plan was established by Bowater Incorporated (Company) as a
trusteed, defined contribution savings plan and a leveraged employee
stock ownership plan (ESOP). The ESOP had no debt outstanding at
December 31, 2006 or 2005. It covers all full-time employees of the
Company and certain employees of the Company's U.S. subsidiaries. It
is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA).
(b) Contributions
Active participants may elect to contribute to the Plan a percentage
of their earnings and certain other income items on a tax-deferred or
non-tax deferred basis, subject to regulated maximums. The maximum
allowable deferral percentage is 50% of the participant's earnings.
The Company contributes to the Plan in cash or shares of Company
common stock. Generally, the Company contributes an amount equal to a
percentage of each participant's contributed earnings. The Company
match is dependent upon each participant's predecessor plan design.
Generally, the Company will match between 40% and 60% of each
participant's contributed earnings up to 6%. Participants who direct
their contributions to the Bowater Stock Fund receive an additional
Company contribution equal to 5% of the purchase price of the stock.
The Company may authorize additional employer contributions.
(c) Participant Accounts
Each participant's account is credited with the participant's
contributions, the Company's contributions and investment earnings;
each participant's account is reduced by participant's withdrawals and
proportionately for investment losses. Allocations are based on
participant contributions or account balances, as defined. The benefit
to which a participant is entitled is the benefit that can be provided
from the participant's vested account.
(d) Vesting
Participants are immediately vested in their contributions plus
earnings thereon. Participants become fully vested in the Company
contributions after completing three years of service.
(e) Investment Options
Participants can direct their contributions to be invested in one or
more of many investment funds, including a Fixed Income Fund, a
Bowater Stock Fund, and certain mutual funds. Participants may make an
unlimited number of exchanges out of the Bowater Stock Fund, but only
one exchange transaction into the Bowater Stock Fund in a thirty-day
period.
4
BOWATER INCORPORATED SAVINGS PLAN
Notes to Financial Statements
December 31, 2006 and 2005
(f) Participant Notes Receivable
Participants may borrow from their fund accounts a minimum of $1,000
up to a maximum of $50,000 (less certain adjustments required by
statute) or 50% of their vested account balance, whichever is less.
Loan transactions are treated as deductions from participants'
accounts and accounted for separately. Loan terms range from 1-5 years
or up to 15 years for the purchase of a primary residence. The loans
are secured by the balance in the participant's account and bear
interest at the prime lending rate plus 1% as of the date of the loan.
Currently, interest rates range from 5.25% to 10.50% on participant
loans. Principal and interest are paid through payroll deductions.
(g) Benefits and Withdrawals
Participants are entitled to receive vested benefits upon termination
of employment. Active employees may withdraw vested funds subject to
certain withdrawal rules as defined in the Plan.
(h) Forfeited Accounts
Forfeited nonvested accounts are used to reduce employer
contributions. In 2006 and 2005, approximately $56,538 and $40,975,
respectively, were forfeited and used to reduce employer
contributions.
(2) Summary of Significant Accounting Policies
(a) Basis of Accounting
The accompanying financial statements are prepared using the accrual
method of accounting in accordance with U.S. generally accepted
accounting principles.
(b) Investment Valuation and Income Recognition
The Plan investments include the Fixed Income Fund, Bowater common
stock, mutual funds, participant notes receivable and interest-bearing
cash.
Purchase and sales of securities are recorded on a trade date basis.
The Plan records interest income on an accrual basis and accrues
dividends on the ex-dividend date.
Investments in participant notes receivable and interest-bearing cash
are stated at cost which approximates fair value. Investments in
Bowater common stock and mutual funds are stated at fair value through
quoted market prices. The Fixed Income Fund's holding of synthetic
guaranteed investment contracts are stated at fair value based
primarily on the quoted market price of the underlying fixed income
marketable securities.
The Guaranteed Investment Contracts (GICs) held by the Fixed Income
Fund are synthetic. The Fixed Income Fund owns certain fixed-income
marketable securities and a liquidity agreement ("wrapper") is entered
into for a fee with financially responsible third parties that
guarantee a minimum rate of return and provides benefit
responsiveness. There are no reserves currently considered necessary
against contract value for credit risk of the contract issuer or
otherwise. Contract value, as reported by the Plan by financially
responsible third parties, represents contributions made under the
contract, plus earnings, less participant withdrawals and
administrative expenses. Participants may ordinarily direct the
withdrawal or transfer of all or a portion of their investment at
contract value. The average yield was approximately 4.3% and 4.1% for
2006 and 2005, respectively. The crediting interest rate was
approximately 4.3% and 4.0% at December 31, 2006 and 2005,
respectively. The crediting interest rate is based on a formula agreed
upon with the issuer and may not be less than 0%. Such interest rates
are
5
BOWATER INCORPORATED SAVINGS PLAN
Notes to Financial Statements
December 31, 2006 and 2005
reviewed on a quarterly basis for resetting. The fair value of the
synthetic GICs is equal to fair value of the underlying marketable
securities plus any accrued income. At December 31, 2006 and 2005,
fair value was $158,943,746 and $165,507,159, respectively, compared
to the contract value at the same dates of $160,763,860 and
$167,391,152, respectively.
Certain events limit the ability of the Plan to transact at contract
value with the issuer. Such events include the following: (1)
amendments to the plan documents (including complete or partial plan
termination or merger with another plan), (2) changes to plan's
prohibition on competing investment options or deletion of equity wash
provisions, (3) bankruptcy of the plan sponsor or other plan sponsor
events (for example, divestitures or spin-offs of a subsidiary) that
cause a significant withdrawal from the plan, or (4) the failure of
the trust to qualify for exemption under Employee Retirement Income
Security Act of 1974. The Plan administrator does not believe that the
occurrence of any such event, which would limit the Plan's ability to
transact at contract value with participants, is probable.
The contracts do not permit the financially responsible third parties
to terminate the agreement prior to the scheduled maturity date.
(c) Administrative Expenses
Net appreciation in fair value of investments is net of investment
management fees of $548,004 and $551,788, respectively, for the years
ended December 31, 2006 and 2005. Additional administrative expenses,
including additional expenses charged by the Trustee, are paid by the
participants or the Company.
(d) Payments of Benefits
Benefit payments to participants are recorded upon distribution.
(e) Use of Estimates
The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to make
estimates and assumptions. These estimates and assumptions affect the
reported amount of assets, liabilities and changes therein, and the
disclosure of contingent assets and liabilities. Actual results could
differ from these estimates and assumptions.
The Plan's investments include funds which invest in various types of
investment securities and in various companies within various markets.
Investment securities are exposed to several risks, such as interest
rate, market and credit risks. Due to the level of risk associated
with certain investment securities, it is possible that changes in the
values of investment securities will occur in the near term and such
changes could materially affect the amounts reported in the Plan's
financial statements and schedule.
(f) Reclassifications
Certain 2005 amounts in the financial statements and notes have been
reclassified to conform to the 2006 presentation. These
reclassifications had no impact on previously reported net change in
net assets available for benefits or net assets available for
benefits.
6
BOWATER INCORPORATED SAVINGS PLAN
Notes to Financial Statements
December 31, 2006 and 2005
(g) New Accounting Pronouncements
As of December 31, 2006, the Plan adopted Financial Accounting
Standards Board (FASB) Staff Position FSP AAG INV-1 and Statement of
Position No. 94-4-1, Reporting of Fully Benefit-Responsive Investment
Contracts Held by Certain Investment Companies Subject to the AICPA
Investment Company Guide and Defined-Contribution Health and Welfare
Pension Plans (the FSP). The FSP requires the Statement of Net Assets
Available for Benefits to present the fair value of the Plan's
investments as well as the adjustment from fair value to contract
value for the fully benefit-responsive investment contracts. The
Statement of Changes in Net Assets Available for Benefits is prepared
on a contract value basis. The FSP was applied retroactively to the
prior period presented on the Statement of Net Assets Available for
Benefits as of December 31, 2005.
In September 2006, the FASB issued Statement on Financial Accounting
Standards No. 157 (SFAS 157) "Fair Value Measurements." SFAS 157
establishes a single authoritative definition of fair value, sets out
a framework for measuring fair value and requires additional
disclosures about fair value measurement. SFAS 157 is effective for
financial statements issued for fiscal years beginning after November
15, 2007. Plan management does not believe the adoption of SFAS 157
will have a material impact on the financial statements.
(3) Investments
Investments, with items representing 5% or more of the Plan's net assets
separately stated, were as follows at December 31, 2006 and 2005:
-----------------------------------------------------------------------------------------------------------------------------
2006 2005
-----------------------------------------------------------------------------------------------------------------------------
Issuer
Fidelity Magellan Fund $ 31,238,506 $ 36,776,264
Fidelity Equity Income Fund 32,370,034 31,757,273
Fidelity OTC Portfolio Fund 22,050,730 26,164,244
Fidelity International Discovery 18,275,872 12,451,143
Fixed Income Fund (Fair value of $158,943,746 and 160,763,860 167,391,152
$165,507,159 in 2006 and 2005, respectively)
Bowater Common Stock 23,347,063 36,833,371
Other (mutual funds, interest-bearing cash, and
participant notes receivable) 73,961,772 56,052,273
-----------------------------------------------------------------------------------------------------------------------------
362,007,837 367,425,720
-----------------------------------------------------------------------------------------------------------------------------
7
BOWATER INCORPORATED SAVINGS PLAN
Notes to Financial Statements
December 31, 2006 and 2005
During the years ended December 31, 2006 and 2005, the Plan's investments
(including gains and losses on investments bought and sold, as well as held
during the year) depreciated in value by $4,351,868 and $7,181,782,
respectively, as follows:
-------------------------------------------------------------------------
2006 2005
-------------------------------------------------------------------------
Mutual Funds $ 4,853,980 $ 4,632,767
Bowater Common Stock (9,205,848) (11,814,549)
-------------------------------------------------------------------------
$ (4,351,868) $ (7,181,782)
-------------------------------------------------------------------------
(4) Related Party Transactions
Certain Plan assets are shares of mutual funds managed by Fidelity
Management Trust Company (Fidelity). Fidelity is the trustee as defined by
the Plan and therefore, these investment transactions qualify as
party-in-interest transactions. The trustee receives investment and
administrative fees as a result of these activities. The Plan assets also
include shares of Bowater common stock. The Company is the Plan sponsor,
therefore, these investment transactions qualify as party-in-interest
transactions. Investment in company stock is participant directed.
(5) Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to terminate the Plan subject to the provisions of
ERISA. In the event of Plan termination, participants will become 100%
vested in all Company contributions.
(6) Tax Status
The Internal Revenue Service has determined and informed the Company by a
letter dated April 24, 2003, that the Plan is designed in accordance with
the applicable sections of the Internal Revenue Code (IRC).
The Plan has been amended since receiving the determination letter,
however, the Company believes that the Plan is currently designed and being
operated in compliance with applicable requirements of the IRC and Plan
document.
(7) Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per
the financial statements at December 31, 2006 to Form 5500:
----------------------------------------------------------------------------------------------------------
2006
----------------------------------------------------------------------------------------------------------
Net assets available for benefits per the financial statements $ 361,967,459
Less: Adjustment from fair value to contract value for fully
benefit-responsive investment contracts (1,820,114)
----------------------------------------------------------------------------------------------------------
Net assets available for benefits per the Form 5500 $ 360,147,345
----------------------------------------------------------------------------------------------------------
8
BOWATER INCORPORATED SAVINGS PLAN
Notes to Financial Statements
December 31, 2006 and 2005
The following is a reconciliation of net investment income per the
financial statements at December 31, 2006 to Form 5500:
----------------------------------------------------------------------------------------------------------
2006
----------------------------------------------------------------------------------------------------------
Total investment income per the financial statements $ 19,048,173
Less: Adjustment from fair value to contract value for fully
benefit-responsive investment contracts (1,820,114)
-----------------------------------------------------------------------------------------------------------
Total investment income per the Form 5500 $ 17,228,059
-----------------------------------------------------------------------------------------------------------
(8) Plan Amendments
On May 9, 2006, the Company approved changes to the Plan. These changes
will be effective beginning January 1, 2007 and are as follows:
o The current company contribution will be replaced as follows: Eligible
employees shall receive a "safe harbor" matching contribution equal to
100% of the first 3% of compensation deferred and 50% of the next 2%
of compensation deferred.
o Additionally, in lieu of benefits received under the Company's defined
benefit pension plan, newly hired non-union employees and current
active participants whose age plus years of service are less than 70
and are younger than age 55, determined as of December 31, 2006 will
receive an additional annual Company contribution (Automatic Company
Contribution) ranging from 2.5% to 6.5% based on the participant's age
and years of service.
o Roth 401(k) accounts shall be provided.
o Participants become fully vested in the Company matching contributions
credited before January 1, 2007 after completing three years of
service. Participants not covered by a collective bargaining agreement
are immediately vested in the Company matching contributions credited
on or after January 1, 2007. Participants become fully vested in the
Automatic Company Contribution after completing three years of
service.
On January 1, 2007, the name of the Plan was changed to Bowater
Incorporated Retirement Savings Plan.
(9) Subsequent Event
In January 2007, the Company and Abitibi-Consolidated Inc. ("Abitibi")
announced a definitive agreement to combine in an all-stock merger of
equals (with the newly merged company herein referred to as
"AbitibiBowater"). The combination is subject to approval by the
shareholders of both companies, regulatory approvals, and customary closing
conditions. It is expected to be completed in the third quarter of 2007.
Upon consummation of the merger, AbitibiBowater will become the new sponsor
of the Plan.
9
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets
(Held at End of Year) December 31, 2006
DESCRIPTION OF INVESTMENT
------------------------------------------------------------------------------
Par Value
IDENTITY OF ISSUER Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
* FIDELITY FIXED INCOME FUND
Synthetic Guaranteed Investment Contracts (GICs)
** CDC FINANCIAL PRODUCTS #1290-01 4.572% open-ended $39,735,937.00
** MONUMENTAL LIFE INSURANCE #MDA00182TR 4.575% open-ended 39,735,936.00
** MORGAN GUARANTY #ABOWATER03 4.569% open-ended 39,735,936.00
** UBS AG #3062 4.572% open-ended 39,735,937.00
UNDERLYING SECURITIES
ANZ NATL INTL4.265 5/16/08 144 00182EAC3 4.265% 05/16/2008 490,000.00 $ 485,060.37
AT&T CORP GLOBAL 6% 3/15/09DTC 001957AV1 6.000% 03/15/2009 50,000.00 51,573.13
AT&T WIRELESS 7.875% 3/01/11 00209AAE6 7.875% 03/01/2011 185,000.00 206,648.33
AT&T WIRE GLBL 8.125 5/1/12 DT 00209AAG1 8.125% 05/01/2012 190,000.00 216,373.84
AXA FINL INC 7.75% 8/01/10 002451AA0 7.750% 08/01/2010 290,000.00 321,715.46
ACCR 03-2 A1 4.23% 10/33 004375AN1 4.230% 10/25/2033 132,910.65 128,786.58
ACCR 03-3 A1 4.46% 12/33 004375AR2 4.460% 01/25/2034 123,258.50 118,778.66
ACE 03-HS1 M1 1ML+75 6/33 004421CF8 6.070% 06/25/2033 25,000.00 25,135.39
ACE 03-HS1 M2 1ML+175 6/33 004421CG6 7.070% 06/25/2033 25,000.00 25,301.15
ACE 03-NC1 M1 1ML+78 7/33 004421CQ4 6.100% 07/25/2033 60,000.00 60,309.92
ACE 03-HE1 M1 1ML+65 11/33 004421DA8 5.970% 11/25/2033 65,974.60 66,301.11
ACE 04-FM1 M1 1ML+60 9/33 004421DK6 6.220% 08/25/2033 50,414.81 50,496.94
ACE 02-HE1 M1 1ML+65 6/32 004427AX8 6.295% 06/25/2032 67,037.78 68,010.90
AIFUL CORP 4.45 2/16/10 144A 00873NAA1 4.450% 02/16/2010 700,000.00 683,072.95
AIFUL CORP 5% 8/10/10 144A 00873NAC7 5.000% 08/10/2010 95,000.00 94,048.23
AIFUL CORP 6% 12/12/11 144A 00873NAD5 6.000% 12/12/2011 220,000.00 218,782.67
AMERICA MOVIL 4.125 3/1/09 02364WAE5 4.125% 03/01/2009 300,000.00 296,042.10
AGFC SR MTN 4.625% 5/15/09 02635PSP9 4.625% 05/15/2009 345,000.00 341,591.65
AMER GENL FIN 3.875% 10/1/09 02635PSS3 3.875% 10/01/2009 185,000.00 179,829.72
AMCAR 04-1 B 3.7 1/09 03061NHH5 3.700% 01/06/2009 13,972.72 13,981.73
AMCAR 04-1 C 4.22% 7/09 03061NHJ1 4.220% 07/06/2009 25,000.00 24,875.91
AMCAR 04-CA A4 3.61% 5/11 03061NHP7 3.610% 05/06/2011 85,000.00 83,575.18
AMCAR 04-DF A4 3.43 7/11 03061NHT9 3.430% 07/06/2011 220,000.00 214,853.09
AMCAR 05-1 B 4.48% 11/09 03061NJB6 4.480% 11/06/2009 200,000.00 199,457.50
AMCAR 05-CF A4 4.63 6/12 03061NJN0 4.630% 06/06/2012 380,000.00 377,923.83
AMCAR 06-1 A3 5.11 10/10 03061NJV2 5.110% 10/06/2010 155,000.00 155,133.51
AMCAR 06-1 B 5.2 3/11 03061NJW0 5.200% 03/06/2011 20,000.00 20,042.71
AMCAR 06-BG A3 5.21% 10/11 03062XAC0 5.210% 10/06/2011 100,000.00 100,360.21
AMCAR 06-BG A4 5.21% 9/13 03062XAD8 5.210% 09/06/2013 195,300.00 196,246.54
10
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
-----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
AMSI 04-R2 M1 1ML+43 4/34 03072SPH2 5.750% 04/25/2034 40,000.00 40,045.48
AMSI 04-R2 M2 1ML+48 4/34 03072SPJ8 5.800% 04/25/2034 25,000.00 25,028.68
ARSI 03-W3 M2 1ML+180 9/33 040104BG5 7.120% 09/25/2033 435,000.00 440,800.39
ABSHE 03-HE6 M1 1ML+65 11/33 04541GGB2 5.970% 11/25/2033 130,000.00 130,984.80
ABSHE 04-HE3 M1 1ML+54 6/34 04541GJT0 5.860% 06/25/2034 50,000.00 50,266.92
ASSOCIATES CORP 6.875 11/15/08 046003HS1 6.875% 11/15/2008 120,000.00 124,305.21
ASSOC-NA GLBL 6.25% 11/01/08 046003JT7 6.250% 11/01/2008 210,000.00 215,407.43
AVON PRODUCTS 5.125% 1/15/11 054303AS1 5.125% 01/15/2011 55,000.00 55,776.93
BBVA BANC 5.3795 7/22/15 144A 055295AA7 5.398% 07/22/2015 200,000.00 202,262.79
BTM CURACAO 4.76% 7/21/15 144A 0557X2AA6 4.760% 07/21/2015 115,000.00 114,946.82
BACM 00-2 A2 7.1975 9/32 05947UBB3 7.197% 09/15/2032 120,000.00 126,915.01
BACM 05-1 A2 4.64% 11/42 05947UC71 4.640% 11/10/2042 405,000.00 403,051.61
BACM 2003-2 A2 4.342 3/41 05947ULW6 4.342% 03/11/2041 355,000.00 348,386.68
BACM 04-2 A2 3.52% 11/38 05947URB6 3.520% 11/10/2038 570,000.00 551,649.95
BACM 05-3 A2 CSTR 7/43 05947UR42 4.501% 07/10/2043 395,000.00 387,282.07
BACM 05-3 XP CSTR 7/43 05947US33 0.456% 07/10/2043 4,213,754.08 76,575.64
BACM 04-4 A3 4.128% 7/42 05947UVK1 4.128% 07/10/2042 195,000.00 190,247.95
BACM 05-4 A1 4.432 7/45 05947UW61 4.432% 07/10/2045 205,611.27 202,773.49
BACM 05-4 XP CSTR 7/45 05947UX78 0.190% 07/10/2045 2,275,200.78 22,217.67
BACM 05-5 A1 4.716 8/10 05947U2M9 4.716% 08/10/2010 269,783.36 267,668.56
BACM 05-5 XP CSTR 10/45 05947U2U1 0.080% 10/10/2045 5,393,678.61 26,936.70
BACM 05-6 A1 5.001 9/47 05947U3Z9 5.001% 09/10/2047 161,823.34 161,519.45
BOAMS 05-E 2A7 CSTR 6/35 05949A6J4 4.604% 06/25/2035 180,000.00 177,593.80
BACM 06-6 XP CSTR 10/45 05950VAG5 0.431% 10/10/2045 4,455,000.00 105,050.83
BACM 06-5 A1 5.185% 7/11 05950XAA4 5.185% 07/10/2011 88,802.36 89,209.67
BACM 2006-5 XP .832% 9/47 05950XAG1 0.832% 09/10/2047 2,825,000.00 92,034.93
BANKAMER 7.8% 2/15/10 GLBL 060505AD6 7.800% 02/15/2010 360,000.00 397,183.92
BONY INC 3.4/3ML+148 3/15/13 064057BF8 3.400% 03/15/2013 485,000.00 479,004.00
BOIT 04-B2 B2 4.37% 4/12 06423RBQ8 4.370% 04/15/2012 525,000.00 515,822.44
BALL 05-ESHA X1 CSTR 7/20 06424HAD9 0.916% 07/14/2020 8,545,000.00 13,523.22
BNK OF TOKYO MIT GL8.4 4/15/10 065379AB5 8.400% 04/15/2010 155,000.00 171,410.37
BANKAMER CORP 6.25% 4/01/08 066050CU7 6.250% 04/01/2008 45,000.00 46,121.36
BSCMS 04-ESA A3 4.741% 5/16 07383FD47 4.741% 05/14/2016 300,000.00 297,477.72
BSCMS 03-PWR2 A3 4.83% 5/39 07383FXH6 4.834% 05/11/2039 150,000.00 148,259.33
BSARM 05-6 1A1 CSTR 8/35 07387ADG7 5.080% 08/25/2035 335,114.30 337,179.19
BSCMS 05-PWR9 A1 4.498 9/42 07387BAD5 4.498% 09/11/2042 318,617.99 314,586.02
BSCMS 05-PWR9 X2 CSTR 9/42 07387BAS2 0.390% 09/11/2042 6,467,281.52 122,747.82
BSCMS 05-T20 A1 4.94% 10/42 07387BCG6 4.940% 10/12/2042 258,530.55 257,568.23
BSABS 04-BO1 M2 1ML+75 9/34 073879JM1 6.070% 09/25/2034 110,000.00 111,813.22
11
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held
at End of Year) December 31,2006
DESCRIPTION OF INVESTMENT
----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
BSABS 04-BO1 M3 1ML+105 9/34 073879JN9 6.370% 09/25/2034 75,000.00 76,224.02
BSABS 04-BO1 M4 1ML+120 9/34 073879JP4 6.520% 09/25/2034 65,000.00 66,498.97
BSCMS 06-PW13 A1 5.294% 09/41 07388LAA8 5.294% 09/11/2041 360,629.41 363,735.03
BSCMS 06-PW13 X2 CSTR 9/41 07388LAK6 0.447% 09/11/2041 2,515,000.00 61,418.23
BSCMS 2006-T24 X2 CSTR 10/41 07388NAY2 0.450% 10/12/2041 2,560,000.00 60,939.86
BEAR STEARNS 2.875 7/2/08 073902CC0 2.875% 07/02/2008 260,000.00 254,909.76
BELLSOUTH GLBL 4.2% 9/15/09 DT 079860AF9 4.200% 09/15/2009 245,000.00 241,203.40
BRHEA 05-4 A5 4.91 12/40 106238LP1 4.910% 12/01/2040 100,000.00 99,639.83
BRHEA 06-A A2R 5.03% 12/41 106238LR7 5.030% 12/01/2041 435,000.00 434,498.07
BRITISH G STEP 12/10 DT 111021AD3 8.625% 12/15/2010 545,000.00 610,126.53
CDCMC 03-HE3 M1 1ML+70 11/33 12506YBN8 6.020% 11/25/2033 74,307.55 74,734.37
CITEC 05-VT1 A4 4.36% 11/12 125564CT9 4.360% 11/20/2012 60,000.00 59,405.51
CIT GROUP 4.125% 11/3/09 125581AM0 4.125% 11/03/2009 225,000.00 219,699.41
CNH 05-B A3 4.27 1/10 12613XCV1 4.270% 01/15/2010 380,000.00 376,595.92
CNH 05-B B 4.57 7/12 12613XCY5 4.570% 07/16/2012 110,000.00 107,301.17
COMM 05-C6 A2 CSTR 6/44 126171AB3 4.999% 06/10/2044 500,000.00 499,038.47
COMM 05-C6 XP CSTR 6/44 126171AJ6 0.128% 06/10/2044 4,497,780.94 34,826.01
CPS 06-C A3 5.14% 1/11 12619BAC7 5.140% 01/15/2011 89,999.81 90,198.32
CWL 04-3 M1 1ML+50 6/34 1266714T0 5.820% 06/25/2034 50,000.00 50,274.79
CWHL 02-25 2A1 5.5 11/17 12669DHX9 5.500% 11/27/2017 85,675.42 85,574.66
CIBC# Y$CD 4.375% 7/28/2008 13606VSM5 4.375% 07/28/2008 200,000.00 203,718.75
CARAT 06-1 A3 5.03 10/09 139732FY2 5.030% 10/15/2009 65,000.00 64,937.95
CARAT 06-1 B 5.26 10/10 139732GA3 5.260% 10/15/2010 65,000.00 65,016.15
CARAT 2006-SN1A A3 5.31% 10/09 13974AAD4 5.310% 10/20/2009 260,000.00 260,446.81
CARAT 2006-SN1A A4A 5.32% 3/10 13974AAE2 5.320% 03/20/2010 295,000.00 295,813.45
CARAT 2006-SN1A B 5.5% 4/10 13974AAG7 5.500% 04/20/2010 25,000.00 25,096.65
CARAT 2006-SN1A C 5.77% 5/10 13974AAH5 5.770% 05/20/2010 25,000.00 25,106.58
CAPITAL ONE MTN 4.875% 5/15/08 14040EHF2 4.875% 05/15/2008 200,000.00 200,013.03
CAPITAL ONE MTN 4.25% 12/1/08 14040EHJ4 4.250% 12/01/2008 200,000.00 196,760.53
CAPITAL ONE 5% 6/15/09 14040EHL9 5.000% 06/15/2009 90,000.00 89,688.35
COAFT 05-BSS C 4.48 12/10 14041GCF1 4.480% 12/15/2010 255,000.00 252,646.96
COAFT 05-C A4A 4.71 6/12 14041GCL8 4.710% 06/15/2012 400,000.00 397,382.37
COMET 2003-B3 B3 4.5 6/11 14041NAT8 4.500% 06/15/2011 495,000.00 490,275.03
COMET 04-B6 B6 4.155 7/12 14041NBV2 4.150% 07/16/2012 325,000.00 317,338.98
COAFT 2006-CA 5.07% 7/11 14041UAC9 5.070% 07/15/2011 240,000.00 240,650.98
COPAR 06-2 A4 4.94% 7/12 14042CAD6 4.940% 07/15/2012 210,000.00 209,613.61
COPAR 2006-2 B 5.05% 6/13 14042CAE4 5.050% 06/15/2013 90,000.00 89,863.36
CFAT 05-A A3 3.9 2/09 149114BX7 3.900% 02/25/2009 151,144.33 150,182.56
CD 06-CD3 XP CSTR 10/48 14986DAL4 0.452% 10/15/2048 8,370,000.00 209,177.46
12
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31,2006
DESCRIPTION OF INVESTMENT
-----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
---------------------------------------------------------------------------------------------------------------------- -------------
CDTIM 05-1A A1 4.67 5/17 15132KAA2 4.670% 05/20/2017 77,341.11 76,553.16
CHAIT 05-B2 B2 4.52 12/10 161571AP9 4.520% 12/15/2010 1,600,000.00 1,583,198.22
CHASE MANHATTAN 6.375% 4/01/08 16161ABS6 6.375% 04/01/2008 50,000.00 51,301.13
CHUBB CORP 5.472% 8/16/08 171232AK7 5.472% 08/16/2008 155,000.00 156,468.47
CITIGROUP GLBL 3.625 2/09/09 172967CH2 3.625% 02/09/2009 505,000.00 497,287.45
CCCIT 05-B1 B1 4.4 9/10 17305ECR4 4.400% 09/15/2010 715,000.00 713,977.95
CCCIT 06-B2 B2 5.15% 3/11 17305EDD4 5.150% 03/07/2011 365,000.00 370,275.68
CGCMT 05-EMG A2 4.2211 9/51 173067FQ7 4.221% 09/20/2051 130,000.00 127,264.45
CWCI 06-C1 A2 5.122% 8/15/4 190749AB7 5.174% 08/15/2048 280,000.00 282,595.79
COMM 99-1 A2 6.455 5/32 200466AB6 6.455% 05/15/2032 1,167,501.76 1,188,401.29
COMM 06-C8 A1 5.11% 12/46 20047EAA0 5.110% 12/10/2046 190,000.00 190,668.11
COMM 06-C8 XP CSTR 12/46 20047EAG7 0.505% 12/10/2046 10,285,000.00 283,144.34
COMM 06-CN2A BFX 5.537 2/19 20047MAJ3 5.537% 02/05/2019 75,000.00 76,038.90
COMM 06-CN2A CFX 5.47945 2/19 20047MAL8 5.479% 02/05/2019 30,000.00 30,402.66
COMM 06-CN2A D 5.52861 2/19 20047MAM6 5.529% 02/05/2019 50,000.00 50,600.70
COMM 06-CN2A E CSTR 2/19 20047MAN4 5.570% 02/05/2019 95,000.00 96,234.31
COMM 06-CN2A F CSTR 2/19 20047MAP9 5.570% 02/05/2019 25,000.00 25,279.80
COMM 05-LP5 A2 4.63 5/43 20047PAB3 4.630% 05/10/2043 500,000.00 493,237.57
COMM 05-LP5 XP CSTR 5/43 20047PAG2 0.369% 05/10/2043 2,423,247.18 33,251.33
CMAC 98-C2 B CSTR 9/30 201728DN9 6.076% 09/15/2030 470,000.00 477,765.53
CMAT 99-C1 A3 6.64 1/32 201730AC2 6.640% 01/17/2032 95,000.00 97,695.20
CONSTELATION EC 6.35% 4/01/07 210371AG5 6.350% 04/01/2007 320,000.00 325,480.64
CONSTELATION EN 6.125% 9/01/09 210371AJ9 6.125% 09/01/2009 145,000.00 150,548.67
CONTL AIR 98-3A2 6.32% 11/1/08 210805CL9 6.320% 11/01/2008 50,000.00 51,151.67
CONTL AIR 991A 6.545% 2/02/19 210805CQ8 6.545% 02/02/2019 247,914.82 263,927.40
CSFB 99-C1 A2 7.29 9/41 22540ALK2 7.290% 09/15/2041 697,721.00 726,134.08
CSFB 01-CK3 A3 6.4 6/34 22540A3E6 6.400% 06/15/2034 115,149.41 117,595.84
CSFB 03-C5 A3 4.429% 12/36 22541QH96 4.429% 12/15/2036 335,000.00 327,059.31
CSFB 04-C1 A3 4.321 1/37 22541SAC2 4.321% 01/15/2037 170,000.00 164,943.66
CSFB 04-FRE1 B1 1ML+180 4/34 22541SSV1 7.120% 04/25/2034 180,000.00 180,287.02
CSMC 06-C5 ASP CSTR 12/39 22545LAJ8 0.673% 12/15/2039 6,320,000.00 230,330.82
CSMC 06-C4 ASP CSTR 9/39 22545MBA4 0.591% 09/15/2039 12,749,999.97 409,433.52
CSFB 05-C4 ASP CSTR 8/38 225458Q84 0.251% 08/15/2038 7,068,894.27 91,014.20
CSFB 05-C2 ASP CSTR 4/37 225458SP4 0.571% 04/15/2037 2,030,547.04 49,276.30
CCI 05-1A B 4.878% 6/35 22822RAB6 4.878% 06/15/2035 141,000.00 139,037.42
DLJCM 98-CF1 A1B 6.41 2/31 23322BAD0 6.410% 02/18/2031 334,566.39 338,433.33
DLJCM 99-CG1 A1B 6.46% 3/32 23322BEG9 6.460% 03/10/2032 360,000.00 368,912.86
DLJCM 1999-CG1 A3 6.77 3/32 23322BEJ3 6.770% 03/10/2032 365,000.00 377,415.36
DAIMLERCHRYSLER 5.75% 8/10/09 23383FBT1 5.750% 08/10/2009 795,000.00 814,149.03
13
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
--------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
DCAT 2006-C A4 4.98% 11/11 233875AC7 4.980% 11/08/2011 275,000.00 275,194.94
DCAT 2006-C B 5.11% 4/13 233875AD5 5.110% 04/08/2013 230,000.00 230,447.89
JOHN DEERE MTN D 4.375 3/14/08 24422EPW3 4.375% 03/14/2008 260,000.00 260,348.52
JOHN DEERE CAP 4.875% 3/16/09 24422EPY9 4.875% 03/16/2009 175,000.00 175,928.86
DEUTSCHE TEL 5.375% 3/23/11 25156PAG8 5.375% 03/23/2011 495,000.00 500,743.46
DONNELLEY RR 3.75% 4/1/09 257867AK7 3.750% 04/01/2009 715,000.00 694,958.56
DRIVE 05-3 A3 4.99 10/10 26207PBH2 4.990% 10/15/2010 345,000.00 344,298.74
DRIVE 06-2 A-2 5.3% 7/11 26207RAB2 5.300% 07/15/2011 240,000.00 240,490.76
DRIVE 06-2 A-3 5.33% 4/14 26207RAC0 5.330% 04/15/2014 305,000.00 306,251.96
DRVT 2006-A A3 5.501% 11/11 26250RAC6 5.501% 11/15/2011 205,000.00 206,462.14
DRVT 2006-B A2 5.32% 3/10 26250SAB6 5.320% 03/15/2010 370,000.00 370,874.84
DRVT 2006-B A3 5.23% 8/12 26250SAC4 5.230% 08/15/2012 210,000.00 210,488.13
EXELON GEN GLBL 6.95% 6/15/11 30161MAB9 6.950% 06/15/2011 335,000.00 353,946.56
FPL GROUP 5.551% 2/16/08 302570AU0 5.551% 02/16/2008 195,000.00 199,310.72
FHLM ARM 4.889% 3/33 #847126 3128HD4K2 4.777% 03/01/2033 9,843.38 9,955.57
FHLM ARM 4.314% 12/34 #1B2670 3128JM2C0 4.302% 12/01/2034 36,458.24 35,770.32
FHLM ARM 4.106% 12/34 #1B2699 3128JM3H8 4.052% 12/01/2034 14,070.48 13,932.03
FHLM ARM 4.22% 2/35 #1B2747 3128JM5H6 4.229% 02/01/2035 189,705.71 185,790.35
FHLM ARM 4.63% 3/35 #1B2811 3128JNAM7 4.629% 03/01/2035 128,017.66 126,287.90
FHLM ARM 4.497% 6/35 #1B2907 3128JNDM4 4.420% 06/01/2035 66,815.34 66,404.18
FHLM ARM 4.307% 5/35 #847408 3128JRGR1 4.287% 05/01/2035 46,741.59 46,618.29
FHLM ARM 4.55% 2/35 #1G0068 3128NCCD4 4.541% 02/01/2035 57,241.03 56,322.78
FHLM ARM 4.401% 2/35 #1G0103 3128NCDG6 4.378% 02/01/2035 105,318.52 103,384.28
FHLM ARM 4.37% 3/35 #1G0125 3128NCD68 4.344% 03/01/2035 58,985.68 57,876.11
FHLM ARM 4.444% 3/35 #1G0133 3128NCEE0 4.426% 03/01/2035 40,121.54 39,486.86
FHLM ARM 4.504% 3/35 #1G0145 3128NCES9 4.445% 03/01/2035 36,968.86 36,363.18
FHLM ARM 4.941% 11/35 #1J1228 3128NHLH4 4.910% 11/01/2035 123,529.77 123,419.33
FHLM ARM 5.26% 1/36 #1J1274 3128NHMX8 5.188% 01/01/2036 123,029.13 123,409.54
FHLM ARM 4.93% 9/35 #1K1215 3128NVK43 4.930% 09/01/2035 115,489.27 114,699.71
FHLM ARM 5.034% 4/35 #1N0002 3128QGAB8 4.989% 04/01/2035 143,293.68 143,447.17
FHLM ARM 5.62% 12/35 #1N0117 3128QGDW9 5.581% 12/01/2035 197,693.87 200,082.59
FHLM ARM 6.53% 8/36 #1N0187 3128QGF49 6.513% 08/01/2036 442,504.84 449,676.67
FHLM ARM 6.67% 10/36 #1G2538 3128QSZB5 6.612% 10/01/2036 149,616.55 152,853.00
FHLM ARM 5.34% 6/35 #1L0097 3128Q2DA8 5.285% 06/01/2035 95,284.75 95,255.36
FHLM ARM 4.40% 8/35 #1L1225 3128Q3LE9 4.405% 08/01/2035 508,106.86 504,097.48
FHLM ARM 5.885% 6/35 #1L1275 3128Q3MY4 5.900% 06/01/2035 42,620.85 43,143.31
FHR 1539 PM 6.5 6/08 312916RJ0 6.500% 06/15/2008 1,317,244.96 1,321,482.50
FHLM ARM 5.676% 4/32 #789284 31295NJ58 7.363% 04/01/2032 3,406.72 3,457.27
FHR 2292 QT 6.5% 5/30 3133TRXT7 6.500% 05/15/2030 3,762.88 3,785.56
14
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
-----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
FHLG 20YR 5.50% 7/23 #C90691 31335HXU2 5.500% 07/01/2023 304,819.16 304,246.17
FHLG 20YR 5.50% 4/24 #C90825 31335H4J9 5.500% 04/01/2024 219,818.52 219,405.31
FHLM ARM 4.819% 10/32 #1B0610 31336SGT9 4.806% 10/01/2032 5,366.17 5,420.06
FHLM ARM 4.441% 2/34 #781229 31349SLJ0 4.427% 02/01/2034 27,508.47 27,245.09
FHLM ARM 4.13% 12/34 #782916 31349UGZ5 4.114% 12/01/2034 29,289.34 29,110.66
FHLM ARM 4.232% 1/35 #782988 31349UJ90 4.066% 01/01/2035 93,234.45 92,212.71
FHLM ARM 4.434% 2/35 #783032 31349ULM8 4.288% 02/01/2035 67,431.61 67,305.59
FHLM ARM 4.307% 3/35 #783067 31349UMQ8 4.288% 03/01/2035 28,496.75 28,334.76
FNR 92-48 HB 7 4/07 31358MRN6 7.000% 04/25/2007 18,591.25 18,678.00
FNR 96-28 PK 6.5 7/25 31359KKK2 6.500% 07/25/2025 140,000.00 145,160.90
FNMA 20YR 5.50% 11/22 #254543 31371KWC1 5.500% 11/01/2022 30,099.20 30,025.90
FNMA ARM 4.25% 2/35 #255658 31371L5T2 4.250% 02/01/2035 18,794.86 18,464.77
FNMA 20YR 5.50% 4/25 #255711 31371MAL1 5.500% 04/01/2025 142,560.08 142,212.93
FNMA 20YR 5.50% 6/25 #255767 31371MCC9 5.500% 06/01/2025 373,379.94 372,470.73
FNMA 15YR 7.00% 10/11 #351943 31376C5C4 7.000% 10/01/2011 22,541.82 23,222.18
FNMA 15YR 7.00% 7/14 #522561 31384FQN0 7.000% 07/01/2014 48,361.59 49,799.81
FNMA 15YR 7.00% 12/17 #555532 31385XED5 7.000% 12/01/2017 156,508.03 161,150.28
FNMA ARM 4.305% 8/33 #555696 31385XKH9 4.291% 08/01/2033 40,447.68 40,367.09
FNMA 15YR 7.00% 1/17 #626726 31389JHB3 7.000% 01/01/2017 103,880.95 106,962.20
FNMA ARM 4.710% 10/32 #612/25/2033 31390K4X3 4.670% 10/01/2032 3,621.60 3,647.15
FNMA ARM 4.732% 10/32 #668509 31391JVA5 4.780% 10/01/2032 7,351.91 7,451.42
FNMA ARM 4.925% 12/32 #677026 31391UD77 4.990% 12/01/2032 2,777.93 2,791.41
FNR 03-23 AB 4% 3/17 31392J6Q7 4.000% 03/25/2017 275,034.92 267,145.55
FNR 03-24 PB 4.5 12/12 31393AA23 4.500% 12/25/2012 241,030.42 240,618.11
FNR 03-83 TH 4.5% 11/16 31393ETB5 4.500% 11/25/2016 400,000.00 389,044.24
FHR 2590 NT 5% 4/16 31393NJY6 5.000% 04/15/2016 155,000.00 154,968.43
FHR 2625 QX 2.25% 3/22 31393RKA7 2.250% 03/15/2022 28,578.78 28,160.85
FHR 2626 NA 5 6/23 31393VHJ3 5.000% 06/15/2023 265,000.00 263,604.82
FHR 2640 QG 2% 4/22 31393WBS7 2.000% 04/15/2022 36,876.56 36,104.65
FHR 2667 PC 3.8% 1/18 31394HHN4 3.800% 01/15/2018 220,000.00 213,779.19
FHR 2677 LC 4.5 6/15 31394JTR8 4.500% 06/15/2015 185,000.00 182,405.12
FNMA ARM 3.828% 4/33 #688969 31400JMS5 3.826% 04/01/2033 64,117.14 63,704.48
FNMA ARM 4.646% 1/33 #689554 31400KBX3 4.594% 01/01/2033 15,222.12 15,294.17
FNMA ARM 4.708% 2/33 #693344 31400PHV0 4.709% 02/01/2033 4,275.81 4,333.35
FNMA ARM 4.318% 3/33 #694530 31400QST1 4.303% 03/01/2033 12,465.41 12,237.38
FNMA ARM 4.801% 2/33 #695019 31400RDY4 4.812% 02/01/2033 37,198.94 37,419.10
FNMA ARM 4.292% 3/33 #701296 31400YC95 4.291% 03/01/2033 23,796.18 23,837.68
FNMA ARM 3.984% 5/33 #703915 31401CAQ6 3.947% 05/01/2033 11,370.92 11,281.76
FNMA ARM 4.079% 4/33 #708221 31401GYS7 4.013% 04/01/2033 6,866.86 6,827.46
15
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31,2006
DESCRIPTION OF INVESTMENT
---------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
FNMA ARM 4.351% 6/33 #720921 31401W4E6 4.302% 06/01/2033 8,346.40 8,319.72
FNMA ARM 3.878% 6/33 #723633 31402A4S2 3.879% 06/01/2033 89,342.10 88,623.62
FNMA ARM 3.836% 6/33 #723760 31402BB52 3.802% 06/01/2033 23,762.32 23,582.07
FNMA ARM 5.12% 1/34 #725109 31402CR61 5.364% 01/01/2034 15,369.27 15,488.44
FNMA ARM 4.862% 9/34 #725855 31402DMC1 4.879% 09/01/2034 27,020.27 26,963.50
FNMA ARM 4.832% 8/34 #725858 31402DMF4 4.942% 08/01/2034 18,277.67 18,377.91
FNMA ARM 4.409% 10/34 #725968 31402DQV5 4.396% 10/01/2034 121,155.40 119,797.63
FNMA 15YR 4.00% 8/18 #727438 31402FEK7 4.000% 08/01/2018 360,128.52 341,414.38
FNMA ARM 5.229% 8/33 #735030 31402QST9 5.170% 08/01/2033 27,250.43 27,374.97
FNMA ARM 4.115% 2/35 #735343 31402Q5C1 4.076% 02/01/2035 14,813.33 14,703.67
FNMA ARM 4.162% 2/35 #735345 31402Q5E7 4.113% 02/01/2035 29,005.69 29,030.30
FNMA ARM 4.587% 2/35 #735355 31402Q5Q0 4.574% 02/01/2035 316,741.15 313,192.44
FNMA ARM 4.493% 8/34 #735360 31402Q5V9 4.443% 08/01/2034 72,627.11 72,130.42
FNMA ARM 4.62% 2/35 #735433 31402RBA6 4.579% 02/01/2035 84,821.53 84,337.99
FNMA ARM 4.53% 3/35 #735448 31402RBR9 4.508% 03/01/2035 80,920.87 79,864.89
FNMA ARM 4.319% 5/35 #735538 31402REK1 4.267% 05/01/2035 26,000.10 25,929.72
FNMA ARM 4.177% 3/35 #735545 31402RES4 4.188% 03/01/2035 91,341.55 91,497.07
FNMA ARM 4.763% 6/35 #735689 31402RKA6 4.699% 06/01/2035 179,353.32 179,433.87
FNMA ARM 4.402% 10/34 #735934 31402RSX8 4.414% 10/01/2034 201,753.06 202,241.90
FNMA ARM 4.898% 10/35 #745060 31403CWV9 4.839% 10/01/2035 70,240.13 69,930.54
FNMA ARM 4.99% 11/35 #745064 31403CWZ0 4.975% 11/01/2035 1,210,360.81 1,207,298.39
FNMA ARM 4.858% 10/35 #745231 31403C4Q1 4.813% 10/01/2035 81,501.59 81,623.59
FNMA ARM 3.941% 6/34 #745335 31403DBC2 3.917% 06/01/2034 159,145.75 156,365.50
FNMA ARM 5.541% 11/36 #745972 31403DW96 5.533% 11/01/2036 144,336.33 145,436.60
FNMA ARM 3.753% 10/33 #746320 31403EDZ7 3.753% 10/01/2033 14,419.90 14,220.38
FNMA ARM 4.155% 7/34 #747270 31403FFK5 4.130% 07/01/2034 85,177.08 83,940.95
FNMA ARM 4.055% 10/18 #749296 31403HNM8 3.995% 10/01/2018 17,223.00 17,054.86
FNMA ARM 4.358% 10/33 #754672 31403QMV9 4.282% 10/01/2033 9,428.10 9,366.12
FNMA ARM 3.752% 10/33 #755148 31403Q5H9 3.729% 10/01/2033 23,795.98 23,446.68
FNMA ARM 4.294% 1/34 #759264 31403VQR3 4.302% 01/01/2034 21,347.37 21,171.27
FNMA ARM 3.750% 1/34 #761058 31403XQK4 3.750% 01/01/2034 25,794.00 25,379.61
FNMA ARM 3.826% 10/33 #763199 31404A3G7 3.810% 10/01/2033 241,144.99 238,079.88
FNMA ARM 4.250% 1/34 #765659 31404DTQ1 4.250% 01/01/2034 29,213.97 28,944.39
FNMA ARM 4.25% 2/34 #765660 31404DTR9 4.250% 02/01/2034 20,098.34 19,908.43
FNMA ARM 4.30% 1/34 #766886 31404E6X9 4.301% 01/01/2034 134,607.63 133,437.46
FNMA ARM 4.057% 5/34 #768224 31404GPH8 6.292% 05/01/2034 7,300.58 7,435.97
FNMA ARM 4.368% 2/34 #769940 31404JLV5 4.365% 02/01/2034 51,472.91 51,097.85
FNMA ARM 3.83% 1/35 #773220 31404NAV8 3.862% 01/01/2035 13,177.95 13,034.23
FNMA ARM 3.98% 1/35#773221 31404NAW6 3.955% 01/01/2035 26,524.48 26,255.36
16
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
FNMA ARM 4.12% 2/35 #773243 31404NBL9 4.064% 02/01/2035 30,118.72 29,896.22
FNMA ARM 4.455% 3/35 #773281 31404NCS3 4.432% 03/01/2035 38,996.48 38,403.71
FNMA ARM 3.939% 10/34 #781549 31404XH23 3.862% 10/01/2034 25,320.13 25,193.45
FNMA ARM 3.786% 12/34 #781576 31404XJV7 3.732% 12/01/2034 29,071.54 28,832.13
FNMA ARM 3.791% 6/34 #783545 31405AP64 3.786% 06/01/2034 109,696.38 107,401.78
FNMA ARM 4.351 1/35 #783580 31405AQ97 4.345% 01/01/2035 19,790.80 19,487.99
FNMA ARM 4.499% 3/35 #783587 31405ARG0 4.487% 03/01/2035 76,491.85 75,513.49
FNMA ARM 4.4% 2/35 #783588 31405ARH8 4.396% 02/01/2035 36,662.61 36,091.37
FNMA ARM 4.876% 7/34 #785318 31405CPB9 4.869% 07/01/2034 84,036.92 83,863.83
FNMA ARM 5.019% 9/34 #790458 31405JE75 4.968% 09/01/2034 23,061.91 23,043.43
FNMA ARM 4.658% 9/34 #790618 31405JK78 4.647% 09/01/2034 13,578.32 13,755.91
FNMA ARM 4.748% 7/34 #793028 31405MA56 4.721% 07/01/2034 67,235.09 66,969.29
FNMA ARM 4.82% 8/34 #793420 31405MPD3 4.828% 08/01/2034 95,394.58 95,083.25
FNMA ARM 4.74% 10/34 #794794 31405N7F6 4.701% 10/01/2034 77,048.83 76,623.08
FNMA ARM 4.96% 8/34 #796987 31405RNC6 4.946% 08/01/2034 193,728.00 193,686.41
FNMA ARM 3.737% 1/35 #797416 31405R3Z7 3.761% 01/01/2035 31,357.22 30,974.34
FNMA ARM 4.202% 1/35 #797418 31405R4B9 4.166% 01/01/2035 55,487.30 54,454.16
FNMA ARM 4.67% 11/34 #799727 31405UPL7 4.586% 11/01/2034 68,518.29 67,923.98
FNMA ARM 4.85% 11/34 #799812 31405UR92 4.807% 11/01/2034 51,893.43 51,655.30
FNMA ARM 4.825% 12/34 #800297 31405VDA2 4.721% 12/01/2034 44,285.78 44,007.59
FNMA ARM 4.845% 12/34 #800335 31405VEG8 4.783% 12/01/2034 13,690.76 13,613.22
FNMA ARM 5.00% 9/34 #801341 31405WHS7 4.999% 09/01/2034 276,254.27 276,247.41
FNMA ARM 5.05% 7/34 #801635 31405WSY2 5.026% 07/01/2034 9,250.53 9,268.12
FNMA ARM 4.23% 11/34 #803591 31405YXU0 4.151% 11/01/2034 9,547.99 9,507.27
FNMA ARM 4.029% 1/35 #806167 31406CTY4 4.014% 01/01/2035 15,795.57 15,735.69
FNMA ARM 4.127% 1/35 #806519 31406DAU0 4.114% 01/01/2035 41,990.14 41,958.16
FNMA ARM 4.048% 1/35 #806711 31406DGU4 4.011% 01/01/2035 12,327.03 12,232.44
FNMA ARM 4.118% 1/35 #807221 31406DYS9 4.100% 01/01/2035 40,090.20 39,825.16
FNMA ARM 3.913% 12/34 #809113 31406F3W9 3.893% 12/01/2034 15,157.84 15,090.91
FNMA ARM 4.5% 2/35 #809429 31406GHE2 4.463% 02/01/2035 225,527.77 222,470.22
FNMA ARM 5.029% 2/35 #809463 31406GJG5 4.977% 02/01/2035 7,141.02 7,156.61
FNMA ARM 4.625% 2/35 #809931 31406GY45 4.567% 02/01/2035 66,490.24 65,759.15
FNMA ARM 4.145% 2/35 #810415 31406HK48 4.116% 02/01/2035 47,286.76 47,146.27
FNMA ARM 4.872% 1/35 #810896 31406H3D7 4.839% 01/01/2035 363,115.04 361,581.66
FNMA ARM 4.57% 2/35 #811803 31406J3L5 4.503% 02/01/2035 12,354.98 12,338.44
FNMA ARM 4.052% 2/35 #812091 31406KF88 4.060% 02/01/2035 15,097.48 14,992.43
FNMA ARM 4.118% 2/35 #813114 31406LK31 4.058% 02/01/2035 14,722.93 14,668.86
FNMA ARM 4.151% 1/35 #813170 31406LMT2 4.128% 01/01/2035 64,860.52 64,379.73
FNMA ARM 4.694% 11/34 #813184 31406LM96 4.658% 11/01/2034 83,188.34 82,628.32
17
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31,
2006
DESCRIPTION OF INVESTMENT
----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
--------------------------------------------------------------------- --------------------------------------------------------------
FNMA ARM 3.87% 1/35 #813713 31406MAN6 3.918% 01/01/2035 32,871.26 32,667.82
FNMA ARM 3.84% 1/35 #813714 31406MAP1 3.807% 01/01/2035 65,824.55 65,226.59
FNMA ARM 4.023% 2/35 #813737 31406MBE5 3.965% 02/01/2035 16,768.56 16,632.46
FNMA ARM 5.01% 4/35 #814954 31406NMB7 4.966% 04/01/2035 50,817.06 50,957.79
FNMA ARM 4.790% 1/35 #815323 31406NYU2 4.757% 01/01/2035 63,137.94 62,725.87
FNMA ARM 4.293% 3/35 #815586 31406PCX5 4.294% 03/01/2035 16,704.01 16,710.06
FNMA ARM 4.653% 3/35 #816322 31406P4F3 4.719% 03/01/2035 8,953.91 8,973.82
FNMA ARM 4.573% 2/35 #816591 31406QF85 4.498% 02/01/2035 125,482.05 125,692.04
FNMA ARM 4.639% 2/35 #816599 31406QGG6 4.509% 02/01/2035 11,544.62 11,601.20
FNMA ARM 4.934% 3/35 #819648 31406TTD3 4.298% 03/01/2035 34,206.04 34,150.35
FNMA ARM 4.928% 2/35 #820356 31406UMD7 4.925% 02/01/2035 207,918.57 207,194.32
FNMA ARM 4.372% 4/35 #820407 31406UNY0 4.315% 04/01/2035 14,880.95 14,827.24
FNMA ARM 4.725% 3/35 #820598 31406UUX4 4.651% 03/01/2035 162,217.29 162,646.03
FNMA ARM 4.597% 6/35 #821487 31406VUL8 4.543% 06/01/2035 64,085.01 63,999.96
FNMA ARM 4.575% 7/35 #822002 31406WGK4 4.503% 07/01/2035 59,714.89 59,567.48
FNMA ARM 4.302% 1/35 #827592 31407DNH4 4.579% 01/01/2035 32,293.53 32,247.37
FNMA ARM 5.8170% 5/35 #827781 31407DUE3 5.051% 05/01/2035 120,958.29 121,456.74
FNMA ARM 5.10% 5/35 #827782 31407DUF0 5.092% 05/01/2035 57,097.29 57,347.91
FNMA ARM 5.208% 5/35 #827783 31407DUG8 5.180% 05/01/2035 472,465.94 473,715.85
FNMA ARM 5.180% 5/35 #827785 31407DUJ2 5.149% 05/01/2035 67,133.97 67,282.04
FNMA ARM 4.520% 8/35 #829603 31407FU40 4.521% 08/01/2035 37,279.84 37,175.67
FNMA ARM 4.409% 5/35 #829985 31407GCW6 4.435% 05/01/2035 60,270.87 60,177.77
FNMA ARM 5.203% 6/35 #830605 31407GYA0 5.168% 06/01/2035 90,650.26 91,162.24
FNMA ARM 4.555% 7/35 #832099 31407JNQ1 4.518% 07/01/2035 72,539.75 72,371.82
FNMA ARM 5.344% 7/35 #834917 31407MSE6 5.315% 07/01/2035 11,468.36 11,537.07
FNMA ARM 5.101% 7/35 #841837 31407VHN8 5.255% 07/01/2035 76,798.64 77,221.30
FNMA ARM 5.349% 12/34 #843013 31407WSA2 5.326% 12/01/2034 26,032.03 26,144.39
FNMA ARM 5.43% 11/35 #844168 31407XZ95 5.398% 11/01/2035 32,624.01 32,871.60
FNMA ARM 4.893% 10/35 #847787 31408C2U9 4.883% 10/01/2035 38,990.00 39,080.26
FNMA ARM 5.32% 1/36 #850852 31408GH59 5.312% 01/01/2036 178,134.68 178,674.73
FNMA ARM 5.409% 2/36 #865319 31409AK81 5.371% 02/01/2036 20,835.15 20,985.81
FNMA ARM 5.84% 3/36 #865958 31409BB30 5.834% 03/01/2036 235,019.86 238,258.00
FNMA ARM 5.98% 4/36 #868793 31409EGA3 5.930% 04/01/2036 130,730.28 132,605.08
FNMA ARM 5.839% 1/36 #879146 31409UWF8 5.794% 01/01/2036 157,432.40 159,445.75
FNMA ARM 3.854% 10/33 #879906 31409VR39 3.847% 10/01/2033 502,047.78 496,592.87
FNMA ARM 6.21% 4/36 #891332 31410MHH6 6.177% 04/01/2036 87,400.09 88,947.65
FNMA ARM 6.08% 4/36 #895834 31410SHK6 6.080% 04/01/2036 40,090.76 40,776.12
FNMA ARM 5.50% 5/36 #896475 31410S6L6 5.500% 05/01/2036 123,306.71 124,419.06
FNMA ARM 6.63% 9/36 #898175 31410U2G6 6.586% 09/01/2036 339,207.64 346,798.37
18
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
--------------------------------------------------------------------- ------------------------------ ----------------- -------------
FNMA ARM 6.60% 9/36 #898177 31410U2J0 6.595% 09/01/2036 189,950.49 194,407.86
FNMA ARM 6.62% 9/36 #898178 31410U2K7 6.598% 09/01/2036 182,344.77 186,471.85
FNMA ARM 6.65% 9/36 #898179 31410U2L5 6.670% 09/01/2036 183,817.24 188,423.39
FNMA ARM 6.62% 9/36 #898180 31410U2M3 6.607% 09/01/2036 180,090.75 184,028.02
FNMA ARM 5.26% 11/36 #901494 31410YRP1 5.263% 11/01/2036 74,839.38 75,247.83
FIAOT 06A A3 4.93 2/15/11 32057TAJ0 4.930% 02/15/2011 160,000.00 159,527.72
FULB 97-C2 A3 6.65 11/29 33736LAR6 6.650% 11/18/2029 194,289.57 196,110.43
FLEETBOSTON FIN 7.375% 12/1/09 33901AAA6 7.375% 12/01/2009 235,000.00 249,507.69
FORDO 2005-A B 3.88 1/10 34527RKS1 3.880% 01/15/2010 75,000.00 73,797.56
FORDO 2005-A C 4.08 6/10 34527RKT9 4.080% 06/15/2010 800,000.00 788,750.03
FORDO 05-C A4 4.36 6/10 34527RLH4 4.360% 06/15/2010 195,000.00 192,313.84
FORDO 2006-B B 5.43% 2/12 34528AAF6 5.430% 02/15/2012 210,000.00 211,431.98
FORDO 06-C A4A 5.15% 2/12 34528CAE5 5.150% 02/15/2012 395,000.00 395,840.91
FORDO 2006-C B 5.3% 6/12 34528CAG0 5.300% 06/15/2012 95,000.00 95,232.82
FRNK 06-1 A4 5.03% 7/14 35242WAD5 5.030% 07/21/2014 565,000.00 563,556.59
FRNK 06-1 B1 5.14% 7/14 35242WAE3 5.140% 07/21/2014 35,000.00 34,944.57
FRANKLIN RESOUR 3.7% 4/15/08 354613AD3 3.700% 04/15/2008 585,000.00 577,529.62
FUJI FIN 8.625% 4/15/10 144A 359555AB5 8.625% 04/15/2010 295,000.00 339,910.01
GECMC 02-2A A2 4.97% 8/36 36158YFS3 4.970% 08/11/2036 425,000.00 423,920.19
GMACC 97-C1 A3 6.869 7/29 361849BV3 6.869% 07/15/2029 50,084.21 50,531.69
GMACC 97-C2 A3 6.566 4/29 361849CK6 6.566% 04/15/2029 15,464.63 15,614.23
GMACC 04-C2 A2 CSTR 8/38 361849F31 4.760% 08/10/2038 125,000.00 123,594.98
GMACC 2004-C3 A3 CSTR 12/41 361849J60 4.207% 12/10/2041 340,000.00 331,851.23
GMACC 05-C1 A2 CSTR 5/43 361849M66 4.471% 05/10/2043 195,000.00 191,458.71
GMACC 05-C1 X2 CSTR 5/43 361849M90 0.746% 05/10/2043 2,101,597.69 53,841.92
GMACC 06-C1 A1 4.975% 11/45 361849Q47 4.975% 11/10/2045 196,595.15 196,158.93
GMACC 06-C1 XP CSTR 11/45 361849R20 0.156% 11/10/2045 3,039,204.50 27,112.59
GMACC 2002-C1 A1 5.785 11/39 361849TP7 5.785% 11/15/2039 351,154.84 355,169.01
GMACC 2003-C2 A1 4.576% 5/40 361849YT3 4.576% 05/10/2040 620,491.91 612,607.84
GNII ARM 3.750% 1/34 #080817 36225C4B9 4.750% 01/20/2034 121,998.22 121,586.65
GSMS 03-C1 A2A 3.59% 1/40 36228CPS6 3.590% 01/10/2040 275,000.00 270,791.53
GSMS 04-C1 A1 3.659% 10/28 36228CSF1 3.659% 10/10/2028 398,009.67 388,767.83
GSMS 05-GG4 XP CSTR 7/39 36228CWC3 0.707% 07/10/2039 5,418,938.38 161,774.86
GSALT 05-1 A3 4.45 5/10 36292RAU5 4.450% 05/17/2010 260,000.00 258,494.57
GSALT 05-1 B 4.62 11/13 36292RAW1 4.620% 11/15/2013 21,587.24 21,487.89
GECMC 04-C3 A2 4.433 7/39 36828QHU3 4.433% 07/10/2039 290,000.00 285,653.85
GCOSL 06-1A NOTE 5.72 3/22 36829EAA0 5.720% 03/01/2022 177,980.00 177,278.00
GE CAP CP MTN 7.5% 6/15/09 36962FUT1 7.500% 06/15/2009 300,000.00 315,754.90
GE CAP CORP MTN 5.25% 10/27/09 36962GZ31 5.250% 10/27/2009 1,517,000.00 1,535,779.45
19
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
----------------------------------------------------------------------------------------------------------------------------------
TOWER 06-1 B 5.588% 2/36 37945SAD0 5.588% 02/15/2036 95,000.00 95,975.08
TOWER 06-1 C 5.707% 2/36 37945SAE8 5.707% 02/15/2036 115,000.00 116,019.46
GNR 02-35 C CSTR 10/23 38373MBY5 5.874% 10/16/2023 36,687.65 37,420.06
GNR 05-58 NJ 4.5 8/35 38374LP54 4.500% 08/20/2035 419,000.00 411,766.64
GPMH 01-1 IA 1ML+34 4/32 395383BC5 5.660% 04/20/2032 81,591.07 81,740.73
GREENPOINT FINL 3.2% 6/06/08 395384AE0 3.200% 06/06/2008 470,000.00 454,938.01
GCCFC 03-C1 A2 3.285% 7/35 396789DT3 3.285% 07/05/2035 325,000.00 311,739.78
GCCFC 04-GG1 A4 4.755 6/36 396789FQ7 4.755% 06/10/2036 300,000.00 297,159.72
GCCFC 05-GG5 CSTR 4/37 396789MP1 0.122% 04/10/2037 27,631,226.50 168,301.34
HBOS PLC MTN 3.75 9/30/08 144A 4041A0AG3 3.750% 09/30/2008 80,000.00 78,663.05
HSBC FIN CORP MTN4.125 3/11/08 40429JAA5 4.125% 03/11/2008 630,000.00 629,553.44
HAT 2006-3 A3 5.38% 9/11 40431CAC2 5.280% 09/19/2011 330,000.00 331,643.41
HARTFORD FINL 5.55% 8/16/08 416515AH7 5.550% 08/16/2008 100,000.00 101,088.55
HEINZ CO 6.428 12/01/08 144A 423074AH6 6.428% 12/01/2008 195,000.00 199,523.35
HAT 04-1 A4 3.93 7/11 44179CBQ8 3.930% 07/18/2011 165,000.00 162,507.08
HOUSEHOLD FIN C 4.125 12/15/08 441812KF0 4.125% 12/15/2008 430,000.00 422,249.39
HOUSEHOLD FIN CO 4.75% 5/15/09 441812KG8 4.750% 05/15/2009 305,000.00 303,551.69
HOUSEHOLD MTN 4.125% 11/16/09 441812KH6 4.125% 11/16/2009 84,000.00 82,099.19
HAT 05-2 A4 4.55 7/12 44328FAH2 4.550% 07/17/2012 300,000.00 295,943.65
HUTCHISON WH 5.45 11/24/10 144 44841SAA7 5.450% 11/24/2010 600,000.00 605,111.63
HART 05-A C 4.22 2/12 449182BM5 4.220% 02/15/2012 25,000.00 24,690.47
HART 06-1 A-3 5.13 6/10 449182BR4 5.130% 06/15/0210 385,000.00 385,335.18
HART 06-1 B 5.29 11/12 449182BT0 5.290% 11/15/2012 20,000.00 20,060.60
HART 06-1 C 5.34 11/12 449182BU7 5.340% 11/15/2012 25,000.00 25,081.03
ILFC ECAP TR 5.9/VR 12/65 144A 44965TAA5 5.900% 12/21/2065 660,000.00 667,916.63
IMM 05-1 M4 1ML+75 4/35 45254NMU8 6.070% 04/25/2035 12,353.01 12,422.33
IMM 05-1 M5 1ML+77 4/35 45254NMV6 6.090% 04/25/2035 12,353.01 12,422.37
IMM 05-1 M6 1ML+82 4/35 45254NMW4 6.140% 04/25/2035 22,235.30 22,342.08
INTL LEASE FIN 4.625% 6/02/08 45974VZW1 4.625% 06/02/2008 80,000.00 79,362.54
JPMMT 05-A8 2A3 CSTR 11/35 466247YP2 4.951% 11/25/2035 50,000.00 50,108.44
JPMCC 2001-C1 A2 5.464 10/35 46625MFB0 5.464% 10/12/2035 205,793.27 206,396.56
JPMCC 04-CB9 A2 CSTR 6/41 46625M6U8 5.108% 06/12/2041 535,000.00 534,357.88
JPMCC 05-LDP2 A2 4.575% 7/42 46625YNA7 4.575% 07/15/2042 195,000.00 191,668.45
JPMCC 05-LDP4 A1 CSTR 10/42 46625YTX1 4.613% 10/15/2042 192,558.57 191,082.72
JPMCC 05-LDP4 X2 CSTR 10/42 46625YUF8 0.209% 10/15/2042 14,762,971.59 127,250.42
JPMCC 05-LDP5 A1 5.035 12/44 46625YXL2 5.035% 12/15/2044 279,192.23 278,599.20
JPMCC 2006-LDP9 A1 CSTR 5/47 46629PAA6 5.170% 05/15/2047 180,000.00 180,296.70
JPMCC 2006-CB17 A3 5.45% 12/43 46630EAB6 5.450% 12/12/2043 195,000.00 197,073.18
JPMART 2006-A A-3 5.18% 12/10 481238AC7 5.180% 12/15/2010 285,000.00 285,543.40
20
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
---------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
JPMRT 2006-A A4 5.14% 12/14 481238AD5 5.140% 12/15/2014 230,000.00 230,497.57
JPMART 2006-A B 5.36% 12/14 481238AE3 5.360% 12/15/2014 65,000.00 65,194.13
KOREA DEV BANK 3.875% 3/02/09 500630BH0 3.875% 03/02/2009 275,000.00 270,482.86
KRAFT FOODS 4% 10/1/08 50075NAK0 4.000% 10/01/2008 210,000.00 207,486.51
LBCMT 98-C4 A1B 6.21 10/35 501773CA1 6.210% 10/15/2035 364,430.55 370,352.55
LBCMT 99-C1 A2 6.78 6/31 501773CS2 6.780% 06/15/2031 348,811.34 359,534.56
LBUBS 00-C3 A2 7.95 1/10 52108HAT1 7.950% 01/15/2010 285,000.00 305,953.76
LBUBS 00-C5 A2 6.51 12/26 52108HCB8 6.510% 12/15/2026 140,000.00 146,608.48
LBUBS 04-C4 A2 CSTR 6/29 52108HE26 4.567% 06/15/2029 240,000.00 237,352.13
LBUBS 04-C6 A2 4.187% 8/29 52108HJ54 4.187% 08/15/2029 200,000.00 195,206.42
LBUBS 03-C3 A2 3.086 5/27 52108HRA4 3.086% 05/15/2027 240,000.00 233,445.61
LBUBS 03-C5 A2 3.478 7/27 52108HSY1 3.478% 07/15/2027 405,000.00 394,729.05
LBUBS 03-C7 A3 CSTR 9/27 52108HUL6 4.559% 09/15/2027 290,000.00 283,875.34
LBUBS 05-C5 XCP CSTR 9/40 52108H7F5 0.544% 09/15/2040 9,753,834.02 168,745.33
LBUBS 05-C7 XCP CSTR 11/40 52108MAQ6 0.376% 11/15/2040 10,355,868.29 103,901.57
LBUBS 06-C1A A1 5.018 2/31 52108MDD2 5.018% 02/15/2031 138,195.52 137,860.66
LBUBS 206-C1A XCP CSTR 2/41 52108MDR1 0.519% 02/15/2041 8,175,000.00 142,088.87
LEGG MASON INC 6.75% 7/02/08 524901AH8 6.750% 07/02/2008 120,000.00 126,409.62
LEHMAN BROS MTN 4.25% 1/27/10 52517PYN5 4.250% 01/27/2010 240,000.00 237,985.09
LBART 2006-B A3 5.17 8/11 54238NAC4 5.170% 08/15/2011 140,000.00 140,316.40
LBART 2006-B A4 5.18% 9/13 54238NAD2 5.180% 09/15/2013 200,000.00 200,543.78
LBART NT CL A-3 5.418% 12/10 542388AC7 5.418% 12/15/2010 220,000.00 220,898.17
LOUIS DREYFUS 6.875% 12/01/07 546011AD9 6.875% 12/01/2007 110,000.00 111,937.01
MBNA CAPITAL 8.278% 12/01/26 55263BAA9 8.278% 12/01/2026 155,000.00 162,643.10
MBNAS 05-B4 B4 4.9% 3/11 55264TDK4 4.900% 03/15/2011 370,000.00 368,796.83
MSSTR 04-1 1A1 CSTR 8/17 55265WAV5 6.238% 08/25/2017 134,522.44 137,356.63
MLCFC 2006-4 XP CSTR 12/49 55312VAQ1 0.674% 12/12/2049 13,080,000.00 475,012.84
MANUFTRS & TRD 3.85/VAR 4/1/13 564759NH7 3.850% 04/01/2013 680,000.00 674,876.20
AMERITECH CAP 6.25% 5/18/09 EC 5685231 6.250% 05/18/2009 225,000.00 236,240.84
MVCOT 06-2A A 5.417% 10/28 57164UAA3 5.362% 10/20/2028 149,836.78 149,766.26
MVCOT 06-2A B 5.467% 10/28 57164UAB1 5.442% 10/20/2028 23,412.00 23,401.81
MVCOT 06-2A C 5.766% 10/28 57164UAC9 5.691% 10/20/2028 9,364.80 9,361.52
MARSHALL & ISLY 4.375% 8/01/09 571834AE0 4.375% 08/01/2009 235,000.00 234,125.37
MALT 04-3 3A1 6 4/34 576434NW0 6.000% 04/25/2034 40,712.81 40,776.44
MMLT 04-1 M1 1ML+50 7/34 59001FAQ4 5.820% 07/25/2034 71,020.19 71,170.64
MERRILL LYN MTN 4.125% 1/15/09 59018YSK8 4.125% 01/15/2009 235,000.00 234,739.35
MERRILL LYN MTN 4.831 10/27/08 59018YWG2 4.831% 10/27/2008 420,000.00 420,922.93
MLMT 04-MKB1 A2 4.353% 2/42 59022HCT7 4.353% 02/12/2042 1,275,000.00 1,251,902.48
MLMT 05-MKB2 XP CSTR 9/42 59022HHB1 0.272% 09/12/2042 1,047,398.32 12,435.41
21
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31,2006
DESCRIPTION OF INVESTMENT
---------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
MLMT 05-MCP1 A2 4.556 6/43 59022HHF2 4.556% 06/12/2043 305,000.00 299,639.67
MLMT 05-MCP1 XP CSTR 6/43 59022HHR6 0.573% 06/12/2043 1,982,486.77 53,877.91
MLMT 05-CIP1 A2 4.96 6/10 59022HJH6 4.960% 07/12/2038 400,000.00 398,149.85
MLMT 05-LC1 A1 5.017 1/44 59022HMV1 5.017% 01/12/2044 132,014.16 131,792.41
MET LIFE GBL 4.25 7/30/09 144A 59217EAL8 4.250% 07/30/2009 500,000.00 496,939.69
MLCFC 06-3 XP CSTR 7/46 60687VBB0 0.681% 07/12/2046 3,995,000.00 153,322.81
MORGAN JP MTN A 6% 1/15/09 61688AAX6 6.000% 01/15/2009 110,000.00 114,607.53
MORGAN JP & CO 6.25% 1/15/09 616880AV2 6.250% 01/15/2009 225,000.00 235,667.13
JPMC 99-C8 A2 7.4% 7/31 617059GE4 7.400% 07/15/2031 268,393.84 279,600.27
MSC 98-WF2 A2 6.54 7/30 61745MGX5 6.540% 07/15/2030 106,091.65 107,796.47
MSC 98-XL2 A2 6.17 10/34 61745MJF1 6.170% 10/03/2034 155,000.00 157,949.72
MSC 98-HF2 A2 6.48 11/30 61745MJR5 6.480% 11/15/2030 532,950.31 542,046.60
MSC 99-WF1 A2 6.21 11/31 61745MKG7 6.210% 11/15/2031 289,628.93 294,064.48
MSC 03-IQ5 A2 4.09 4/38 61745MTB9 4.090% 04/15/2038 80,275.63 79,459.10
MSC 04-HQ3 A2 4.05 1/41 61745MWZ2 4.050% 01/13/2041 170,000.00 165,582.13
MSC 05-TOP17 X2 CSTR 12/41 61745MW58 0.601% 12/13/2041 1,571,139.01 42,400.03
MSC 05-HQ5 X2 CSTR 1/42 61745M3G6 0.326% 01/14/2042 2,389,872.67 29,198.92
MSC 06-T21 A1 4.925 10/52 617451CM9 4.925% 10/12/2052 206,250.86 205,387.41
MORGAN STLY MTN 5.625% 1/09/12 61746BCW4 5.625% 01/09/2012 800,000.00 830,934.00
MSAC 03-NC7 M1 1ML+70 6/33 61746RCR0 6.020% 06/25/2033 68,174.05 68,332.15
MSDWC 00-PRIN A2 7.18 2/34 61746WCX6 7.180% 02/23/2034 121,477.94 123,341.16
MSDWC 01-PPM A2 6.4 2/31 61746WES5 6.400% 02/15/2031 472,216.32 484,280.24
MSC 2006-HQ9 A1 5.49% 7/44 61750CAA5 5.490% 07/20/2044 314,557.22 318,159.47
MSC 2006-HQ10 X2 CSTR 11/41 61750HAM8 0.503% 11/01/2041 5,810,000.00 146,270.82
MCFI 98-MC2 A2 6.423 6/30 61910DEQ1 6.423% 06/18/2030 395,807.81 400,946.03
NCSLT 05-1 AIO 6.75% 12/09 63543PBP0 6.750% 12/25/2009 150,000.00 28,008.75
NCSLT 05-2 AIO 7.73 3/12 63543PBV7 7.730% 03/25/2012 165,000.00 37,651.08
NCSLT 06-1 A-IO 5.5 4/11 63543PCE4 5.500% 04/25/2011 190,000.00 38,103.49
NCSLT 05-3W AIO1 4.8 7/12 63543TAM0 4.800% 07/25/2012 535,000.00 83,427.90
NCSLT 2006-3 AIO 7.1% 1/12 63543VAF0 7.100% 01/25/2012 520,000.00 155,915.07
NCSLT 06-4 AIO 6.35% 02/12 63543WAE1 6.350% 02/27/2012 375,000.00 105,890.01
NAT-RURAL GLBL 5.75% 8/28/09 637432CV5 5.750% 08/28/2009 145,000.00 149,640.85
NLFC 99-1 A2 6.316 1/31 63859CBS1 6.316% 01/20/2031 312,989.05 318,448.41
NLFC 99-1 C 6.571 1/31 63859CBV4 6.571% 01/20/2031 140,000.00 143,559.23
NAVOT 05-A A4 4.43 1/14 63937UAD1 4.430% 01/15/2014 150,000.00 147,592.73
NEXTEL COMM 5.95% SER F 3/14 65332VBJ1 5.950% 03/15/2014 160,000.00 158,803.11
NEF 05-1 A5 4.74 10/45 66704JBJ6 4.740% 10/30/2045 220,000.00 219,711.12
NHEL 04-1 M1 1ML+45 6/34 66987XEA9 5.770% 06/25/2034 50,000.00 50,330.50
NHEL 04-1 M4 1ML+97.5 6/34 66987XED3 6.295% 06/25/2034 80,000.00 80,517.29
22
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
---------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
ONYX 05-B A4 4.34% 5/12 68338SEX2 4.340% 05/15/2012 125,000.00 123,197.24
ORIX CORP 5.48% 11/22/11 686330AC5 5.480% 11/22/2011 295,000.00 296,182.56
PECO ENERGY 3.5% 5/01/08 693304AF4 3.500% 05/01/2008 405,000.00 397,777.37
PNC FUNDING CORP 4.2 3/10/08 693476AU7 4.200% 03/10/2008 125,000.00 124,278.13
PPSI 04-WWF1 M4 1ML+110 1/35 70069FDM6 6.420% 01/25/2035 255,000.00 258,536.43
PETRO EXP 4.623% 6/15/10 144A 716589AA4 4.623% 06/15/2010 155,555.57 153,383.18
PETRO EXP 4.633% 6/15/10 144A 716589AB2 4.633% 06/15/2010 93,333.34 92,031.25
PCAT 2006-A B 5.51% 9/09 72345WAD4 5.510% 09/25/2009 90,000.00 90,059.59
PCAT 2006-A C 5.77% 5/10 72345WAE2 5.770% 05/25/2010 80,000.00 80,060.43
PMNT 05-2 B2 5.1 11/12 74490BAH0 5.100% 11/15/2012 275,000.00 275,213.58
PMNT 06-B1A B1 5.35 3/13 74490BAL1 5.350% 03/15/2013 305,000.00 305,939.67
RAMP 03-SL1 A31 7.125% 4/31 760985E64 7.125% 04/25/2031 104,003.37 105,537.29
RAMP 03-RZ2 A1 3.6% 4/33 760985SH5 3.600% 04/25/2033 58,572.32 57,533.89
RAMP 04-SL2 A1I 6.5 10/16 7609856A4 6.500% 10/25/2016 22,199.28 22,609.22
GMACM 05-AR5 1A1 CSTR 9/35 76112BXX3 4.814% 09/19/2035 93,468.14 93,912.89
SBC COMM GLBL 6.25 3/15/11 78387GAD5 6.250% 03/15/2011 95,000.00 99,827.21
SBC COMM GLBL 4.125 9/15/09 78387GAN3 4.125% 09/15/2009 585,000.00 575,288.90
SLM CORP 4% 1/15/09 78442FBK3 4.000% 01/15/2009 510,000.00 508,081.61
SLM CORP 4.5% 7/26/10 78442FDP0 4.500% 07/26/2010 175,000.00 173,728.81
SLMA 05-7 A3 4.41 7/25 78442GQH2 4.410% 07/25/2025 325,000.00 322,856.63
SLMA 04-A B 3ML+58 6/33 78443CBJ2 5.935% 06/15/2033 100,000.00 101,674.50
SVOVM 05-A A 5.25 2/21 78487TAA2 5.250% 02/20/2021 117,585.52 117,534.96
SAFECO CORP 4.2% 2/01/08 786429AP5 4.200% 02/01/2008 185,000.00 185,711.51
SBM7 00-C3 A2 6.592 12/33 79548CAB2 6.592% 12/18/2033 310,000.00 323,776.50
SBM7 02-KEY2 A2 4.467% 3/36 79548CCP9 4.467% 03/18/2036 444,430.72 435,509.57
SBM7 00-C1 A2 7.52 12/09 79548K3J5 7.520% 12/18/2009 345,000.00 365,069.02
SANTANDER 5.805/VAR 6/20/16 80281TAB4 5.805% 06/20/2016 200,000.00 202,071.95
SANTANDER 4.75% 10/21/08 144A 802815AC4 4.750% 10/21/2008 600,000.00 599,776.87
SEMPRA ENERGY 7.95% 3/01/10 816851AB5 7.950% 03/01/2010 185,000.00 203,379.75
SEMPRA ENERGY 4.621% 5/17/07 816851AE9 4.621% 05/17/2007 510,000.00 510,934.77
SEMPRA ENERGY 4.75 5/15/09 816851AG4 4.750% 05/15/2009 70,000.00 69,559.73
SIMON PROPERTY 4.875% 8/15/10 828807BE6 4.875% 08/15/2010 105,000.00 105,477.51
SIMON PROPERTY 5.6% 9/1/11 828807BU0 5.600% 09/01/2011 230,000.00 236,218.23
SPRINT CAP GLBL 7.625% 1/30/11 852060AJ1 7.625% 01/30/2011 460,000.00 507,234.47
ARC 02-BC1 M2 1ML+110 1/32 86358RYK7 6.420% 01/25/2032 14,183.66 14,246.85
SASC 04-GEL1 A 1ML+36 2/34 86359BMQ1 5.680% 02/25/2034 11,914.57 11,997.91
SWIFT 05-A12 B 1ML+48 6/10 86837YAB9 5.800% 06/15/2010 305,000.00 306,263.42
TARGET CORP 3.375% 3/01/08 87612EAL0 3.375% 03/01/2008 450,000.00 445,551.30
TELECOM ITALIA 4% 11/15/08 87927VAD0 4.000% 11/15/2008 280,000.00 275,043.56
23
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
------------------ -------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
TELECOM ITALIA 4% 1/15/10 87927VAK4 4.000% 01/15/2010 255,000.00 248,200.79
TELECOM ITALIA 4.875% 10/01/10 87927VAN8 4.875% 10/01/2010 125,000.00 123,272.07
TELEFONOS MEX 4.5 11/19/08 879403AL7 4.500% 11/19/2008 100,000.00 98,721.30
TELEFONOS MEXICO 4.75% 1/27/10 879403AP8 4.750% 01/27/2010 300,000.00 299,378.83
TEXAS EAST 5.25% 7/15/07 882389CB3 5.250% 07/15/2007 50,000.00 51,074.12
TEXTRON FINL MTN 4.125% 3/3/08 88319QG98 4.125% 03/03/2008 120,000.00 119,773.06
TIME WARNER COS INC 8.18% 8/07 887315AX7 8.180% 08/15/2007 210,000.00 219,940.82
TRAVELERS PPTY 3.75% 3/15/08 89420GAG4 3.750% 03/15/2008 95,000.00 93,846.10
TAROT 2006-C A4 5.31% 5/13 89578PAD1 5.310% 05/13/2013 154,700.00 155,672.60
TAROT 06-A A3 4.77% 1/11 895787AW9 4.770% 01/12/2011 165,000.00 164,442.76
TAROT 06-A A4 4.88% 4/13 895787AX7 4.880% 04/12/2013 195,000.00 193,985.83
UNCREDIT LUX 5.584/VAR 1/13/17 90466GAB8 5.584% 01/13/2017 300,000.00 304,737.73
USTN TII 3.875% 1/15/09 9128274Y5 3.875% 01/15/2009 1,600,000.00 2,059,442.95
USTN 4.375% 12/15/10 912828EQ9 4.375% 12/15/2010 36,285,000.00 35,941,027.97
USTN 4.75% 3/31/11 912828FA3 4.750% 03/31/2011 2,700,000.00 2,737,484.20
USTN 4.875% 5/15/09 912828FE5 4.875% 05/15/2009 756,000.00 762,439.17
USTN 5% 7/31/08 912828FM7 5.000% 07/31/2008 3,410,000.00 3,486,946.35
VERIZON GLBL 7.25% 12/1/10 92344GAL0 7.250% 12/01/2010 440,000.00 471,678.97
VERIZON NEW YOR 6.875% 4/01/12 92344XAA7 6.875% 04/01/2012 505,000.00 532,221.78
VODAFONE GRP PLC 5.5% 6/15/11 92857WAM2 5.500% 06/15/2011 95,000.00 95,473.43
WESTO 04-4 A4 3.44% 5/12 92927TAD5 3.440% 05/17/2012 345,000.00 337,596.53
WBCMT 05-C22 A1 4.98 12/44 92976BBJ0 4.980% 12/15/2044 179,047.66 178,511.68
WBCMT 06-C24 XP CSTR 3/45 92976BGC0 0.077% 03/15/2045 7,051,258.03 48,930.26
WBCMT 05-C16 APB 4.692% 10/41 929766B69 4.692% 10/15/2041 150,000.00 146,499.93
WBCMT 03-C6 A2 4.498 8/35 929766JC8 4.498% 08/15/2035 275,000.00 270,807.25
WBCMT 03-C7 A1 4.241 10/35 929766KH5 4.241% 10/15/2035 303,774.08 296,525.35
WBCMT 03-C8 A3 4.445% 11/35 929766LX9 4.445% 11/15/2035 680,000.00 664,839.10
WBCMT 05-C18 XP CSTR 4/42 929766V75 0.342% 04/15/2042 2,940,078.06 45,872.29
WBCMT 2004-C15 A2 4.039 10/41 929766WJ8 4.039% 10/15/2041 370,000.00 359,289.18
WBCMT 05-C16 A2 4.38% 10/41 929766YV9 4.380% 10/15/2041 465,000.00 455,666.43
WALOT 06-1 A-3 5.1 7/11 92977AAE3 5.100% 07/20/2011 190,000.00 190,038.46
WALOT 06-1B 5.15% 7/12 92977AAG8 5.150% 07/20/2012 120,000.00 120,065.15
WACHOVIA CAP 7.965 6/1/27 144A 92977EAA3 7.965% 06/01/2027 90,000.00 94,792.28
WALOT 06-2 B 5.29% 6/12 92977UAJ8 5.290% 06/20/2012 90,000.00 90,439.88
WALOT 06-2 C 5.34% 10/12 92977UAL3 5.340% 10/22/2012 100,000.00 100,594.01
WMLT 05-B 2A4 CSTR 10/35 92977YBW0 5.171% 10/20/2035 40,000.00 40,058.13
WACHOVIA CORP 6.15% 3/15/09 929771AM5 6.150% 03/15/2009 575,000.00 596,297.04
WACHOVIA CORP 3.5% 8/15/08 929903AC6 3.500% 08/15/2008 260,000.00 256,222.00
WASHINGTON MUTUAL 4.5% 8/25/08 93933VAV0 4.500% 08/25/2008 310,000.00 310,765.70
24
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31,
2006
DESCRIPTION OF INVESTMENT
----------------------------------------------------------------------------
IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
------------------------------------------------------------------------------------------------------------------------------------
WAMMS 03-MS9 2A1 7.5% 12/33 939336N66 7.500% 12/25/2033 26,079.24 26,974.15
WAMMS 04-RA2 2A 7% 7/33 939336R54 7.000% 07/25/2033 39,089.87 39,855.38
WELLS FARGO & CO 4% 9/10/12 949746CN9 4.000% 09/10/2012 150,000.00 150,073.25
WELLS FARGO 3.125 4/1/09 949746FQ9 3.125% 04/01/2009 180,000.00 173,551.05
WELLS FARGO MED 4% 8/15/08 949746JB8 4.000% 08/15/2008 255,000.00 253,646.49
WFMBS 05-AR4 2A2 CSTR 4/35 94981NAH8 4.524% 04/25/2035 694,832.62 685,878.79
WFMBS 05-AR2 2A2 4.57% 3/35 94981UAF6 4.570% 03/25/2035 350,269.26 346,512.32
WFMBS 5-AR9 2A1 CSTR 5/35 94982HAC1 4.362% 05/25/2035 368,726.99 363,163.21
WFMBS 05-AR10 2A2 CSTR 6/35 94983CAE7 4.110% 06/25/2035 139,004.34 136,753.67
WFMBS 05-AR12 2A6 CSTR 7/35 94983EAJ2 4.319% 07/25/2035 79,105.39 78,445.72
WFMBS 06-AR8 2A6 CSTR 4/36 94983VAL9 5.240% 04/25/2036 415,000.00 414,210.95
WESTERN UN 5.4% 11/17/11 144A 959802AC3 5.400% 11/17/2011 410,000.00 406,997.16
WESTO 05-3 A4 4.39 5/13 962215AE9 4.390% 05/17/2013 220,000.00 217,803.20
WESTO 05-3 B 4.50 5/13 962215AG4 4.500% 05/17/2013 85,000.00 84,091.61
WESTO 05-3 C 4.54 5/13 962215AH2 4.540% 05/17/2013 110,000.00 108,865.70
WOART 04-A A4 3.96% 7/11 98152DBJ9 3.960% 07/12/2011 315,000.00 310,673.76
WOART 06-A A3 5.01 10/10 98152DBY6 5.010% 10/15/2010 1,230,000.00 1,229,509.68
----------------
TOTAL OF CDC Financial Products, Monumental Life Insurance Co,
Morgan Guaranty, and UBS AG contracts 158,943,746
---------------
FID INST CASH PORT: MM FUND CLASS I SHS F/N/A 316175207 5.244% 5,581,709.05 $ 5,605,142.08
* Interest-Bearing Cash 448,130.00
* Interest-Bearing Cash 79,136.26
----------------
* TOTAL OF INTEREST-BEARING CASH 6,132,408
----------------
STOCK
* BOWATER COMMON STOCK 1,037,647.00 23,347,063
----------------
MUTUAL FUNDS
* FIDELITY MAGELLAN 348,956.00 $31,238,506.00
* FIDELITY EQUITY INCOME 552,861.00 32,370,034.00
* FIDELITY OTC PORTFOLIO 533,141.00 22,050,730.00
* FIDELITY INTERNATIONAL DISCOVERY 481,959.00 18,275,872.00
SPARTAN US EQUITY INDEX 254,188.00 12,755,177.00
LORD ABBETT SMCPVAL Y 454,976.00 14,140,647.00
* FIDELITY ASSET MANAGER 440,023.00 7,088,764.00
* FIDELITY ASSET MANAGER GROWTH 299,387.00 4,865,037.00
25
BOWATER INCORPORATED SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2006
DESCRIPTION OF INVESTMENT
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IDENTITY OF ISSUER Par Value
Security Interest Maturity or Number Fair
Number Rate Date of Units Value
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* FIDELITY SHORT TERM BOND 305,505.00 2,709,826.00
* FIDELITY ASSET MANAGER INCOME 171,390.00 2,168,077.00
RS SMALLER COMPANY GROWTH 71,036.00 1,498,865.00
* FIDELITY FREEDOM 2020 239,490.00 3,719,278.00
* FIDELITY FREEDOM 2015 310,018.00 3,855,418.00
LM VALUE TRUST FI CL 11,623.00 922,423.00
* FIDELITY FREEDOM 2010 135,820.00 1,985,694.00
GS GROWTH OPPS INST 40,513.00 909,509.00
* FIDELITY FREEDOM 2025 76,174.00 972,742.00
* FIDELITY FREEDOM 2035 38,978.00 514,124.00
* FIDELITY FREEDOM 2030 52,270.00 837,889.00
* FIDELITY FREEDOM 2005 48,817.00 566,760.00
* FIDELITY FREEDOM 2040 49,698.00 471,140.00
* FIDELITY FREEDOM INCOME 4,339.00 50,079.00
* FIDELITY FREEDOM 2045 203.00 2,184.00
* FIDELITY FREEDOM 2050 284.00 3,058.00
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TOTAL OF MUTUAL FUNDS 163,971,833
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* PARTICIPANT LOANS (5.25% to 10.50%) 7,792,673
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TOTAL ASSETS IN SAVINGS PLAN AT FAIR VALUE $ 360,187,723
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*Denotes a party-in-interest
See accompanying report of independent registered public accounting firm.
26
INDEX TO EXHIBITS
Exhibit No. Description
23 Consent of Independent Registered Public Accounting Firm
Exhibit 23
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Bowater Incorporated:
We consent to the incorporation by reference in the Registration Statement (No.
333-129865) on Form S-8 of Bowater Incorporated of our report dated June 29,
2007, with respect to the statements of net assets available for benefits of the
Bowater Incorporated Savings Plan as of December 31, 2006 and 2005 and the
related statements of changes in net assets available for benefits for the years
then ended, as well as the related financial statement schedule, which report
appears in the December 31, 2006 annual report on Form 11-K of the Bowater
Incorporated Savings Plan.
Our report with respect to the financial statements refers to the Plans's
adoption of Financial Accounting Standards Board Staff Position AAG INV-1 and
SOP No. 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held
by Certain Investment Companies Subject to the AICPA Investment Company Guide
and Defined-Contribution Health and Welfare Pension Plans, as of December 31,
2006 and 2005.
/s/ KPMG LLP
Greenville, South Carolina
June 29, 2007