Exhibit 12.1
Domtar Corporation
Computation of ratio of earnings to fixed charges
(In millions of dollars, unless otherwise noted)
Year ended December 31, 2008 | Year ended December 31, 2009 | Year ended December 31, 2010 | Year ended December 31, 2011 | Year ended December 31, 2012 | ||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||
Available earnings: | ||||||||||||||||||||
Earnings (loss) before income taxes and equity earnings | (570 | ) | 490 | 448 | 505 | 236 | ||||||||||||||
Add fixed charges: | ||||||||||||||||||||
Interest expense incurred | 128 | 115 | 144 | 76 | 75 | |||||||||||||||
Amortization of debt expense and discount | 5 | 10 | 11 | 7 | 8 | |||||||||||||||
Interest portion of rental | 13 | 12 | 11 | 11 | 11 | |||||||||||||||
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Total earnings (loss) as defined | (424 | ) | 627 | 614 | 599 | 330 | ||||||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense incurred | 128 | 115 | 144 | 76 | 75 | |||||||||||||||
Amortization of debt expense and discount | 5 | 10 | 11 | 7 | 8 | |||||||||||||||
Interest portion of rental expense(1) | 13 | 12 | 11 | 11 | 11 | |||||||||||||||
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Total fixed charges | 146 | 137 | 166 | 94 | 94 | |||||||||||||||
Ratio of earnings to fixed charges | 4.6 | 3.7 | 6.4 | 3.5 | ||||||||||||||||
Deficiency in the coverage of earnings to fixed charges | 570 | |||||||||||||||||||
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(1) | Interest portion of rental expense is calculated based on the proportion deemed representation of the interest component (i.e. 1/3 of rental expense). |