EX-12.1 12 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 26,
2004		     Year ended
December 25,
2005		     Year ended
December 31,
2006		     Year ended
December 30,
2007		    Year ended
December 31,
2008		  
     $     $     $     $    $  

Available earnings:

            

Earnings (loss) before income taxes

    (41 )   (578 )   (556 )   99    (570 )

Add fixed charges:

            

Interest expense (excluding capitalized)

    —       —       —       166    128  

Amortization of loan costs

    —       —       —       5    5  

Interest factor in rents

    6     7     5     10    13  
                             

Total earnings (loss) as defined

    (35 )   (571 )   (551 )   280    (424 )
                             

Fixed charges:

            

Interest expense incurred

    —       —       —       166    128  

Amortization of debt expense

    —       —       —       5    5  

Interest portion of rental expense

    6     7     5     10    13  

Preferred dividends of subsidiaries

    —       —       —       —      —    

Capitalized interest

    —       —       —       —      —    
                             

Total fixed charges

    6     7     5     181    146  

Ratio of earnings to fixed charges

          1.5   
             

Deficiency in the coverage of earnings to fixed charges

    41     578     556        570