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 | |||||||||||||||
1