EX-12.1 2 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Domtar Corporation

Computation of ratio of earnings to fixed charges

 

     Year ended
December 28,
2003		     Year ended
December 26,
2004		     Year ended
December 25,
2005		     Year ended
December 31,
2006		     Year ended
December 30,
2007

Available earnings:

           

Earnings (loss) before interest expense and income taxes

    $ (96 )   $ (41 )   $ (578 )   $ (556 )   $ 99

Add Fixed charges:

           

Interest Expense (excluding capitalized)

      —         —         —         —         166

Amortization of loan costs

      —         —         —         —         5

Interest factor in rents

      6       6       7       5       10
                                      

Total earnings (loss) as definded

      (90 )     (35 )     (571 )     (551 )     280
                                      

Fixed charges:

           

Interest expense incurred

      —         —         —         —         166

Amortization of debt expense

      —         —         —         —         5

Interest portion of rental expense

      6       6       7       5       10

Preferred dividends of subsidiaries

      —         —         —         —         —  

Capitalized interest

      —         —         —         —         —  
                                      

Total fixed charges

      6       6       7       5       181

Ratio of earnings to fixed charges

              1.5
              

Deficiency in the coverage of earnings to fixed charges

      15.0       5.8       81.6       110.2    
                                  

 

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