Exhibit 12.1
NEWPAGE CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(In millions of dollars)
| Predecessor | Successor | |||||||||||||||||||||||||||
| Period from Jan. 1 to April 30, 2005 | Period from May 1 to Dec. 31, 2005 | Year ended December 31, | Quarter ended March 31, 2010 | |||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||||||||
Earnings (loss): | ||||||||||||||||||||||||||||
Pre-tax income (loss) before income (loss) from equity investee | $ | (7 | ) | $ | (72 | ) | $ | (20 | ) | $ | (3 | ) | $ | (114 | ) | $ | (357 | ) | $ | (175 | ) | |||||||
Interest and debt expense | 21 | 111 | 146 | 154 | 278 | 419 | 97 | |||||||||||||||||||||
Portion of rental expense deemed to be interest* | 2 | 4 | 7 | 5 | 9 | 9 | 2 | |||||||||||||||||||||
Distributed income of equity investee | 2 | 8 | — | — | — | — | — | |||||||||||||||||||||
Less: Capitalized interest | — | — | — | — | (1 | ) | (1 | ) | — | |||||||||||||||||||
Less: Pre-tax income of noncontrolling interests | — | — | — | (1 | ) | (3 | ) | (5 | ) | — | ||||||||||||||||||
Total earnings (loss) | $ | 18 | $ | 51 | $ | 133 | $ | 155 | $ | 169 | $ | 65 | $ | (76 | ) | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest and debt expense | $ | 21 | $ | 111 | $ | 149 | $ | 154 | $ | 278 | $ | 419 | $ | 97 | ||||||||||||||
Portion of rental expense deemed to be interest* | 2 | 4 | 7 | 5 | 9 | 9 | 2 | |||||||||||||||||||||
Total fixed charges | $ | 23 | $ | 115 | $ | 156 | $ | 159 | $ | 287 | $ | 428 | $ | 99 | ||||||||||||||
Ratio of earnings to fixed charges | — | — | — | — | — | — | — | |||||||||||||||||||||
Deficiency in earnings necessary to cover fixed charges | $ | (5 | ) | $ | (64 | ) | $ | (23 | ) | $ | (4 | ) | $ | (118 | ) | $ | (363 | ) | $ | (175 | ) | |||||||
| * | Portion of rental expense deemed to be interest represents one-third of total rent expense, which management believes is a reasonable approximation of the interest factor. |