EX-12.1 8 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

(In millions of dollars, unless otherwise noted)

     Year ended
December 25,

2005
    Year ended
December 31,
2006
    Year ended
December 30,
2007
   Year ended
December 31,
2008
    Year ended
December 31,
2009
     $     $     $    $     $

Available earnings:

           

Earnings (loss) before income taxes

   (578   (556   99    (570   490

Add fixed charges:

           

Interest expense (excluding capitalized)

   —        —        166    128      115

Amortization of loan costs

   —        —        5    5      10

Interest factor in rents

   7      5      10    13      12
                           

Total earnings (loss) as defined

   (571   (551   280    (424   627
                           

Fixed charges:

           

Interest expense incurred

   —        —        166    128      115

Amortization of debt expense

   —        —        5    5      10

Interest portion of rental expense

   7      5      10    13      12
                           

Total fixed charges

   7      5      181    146      137

Ratio of earnings to fixed charges

       1.5      4.6

Deficiency in the coverage of earnings to fixed charges

   578      556         570