Exhibit 12.1
Domtar Corporation
Computation of ratio of earnings to fixed charges
(In millions of dollars, unless otherwise noted)
Three months ended | Six months ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Available earnings: | ||||||||||||||||
(Loss) earnings before income taxes and equity earnings | (51 | ) | 88 | (27 | ) | 126 | ||||||||||
Add fixed charges: | ||||||||||||||||
Interest expense incurred | 20 | 18 | 42 | 37 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 2 | 6 | ||||||||||||
Interest portion of rental expense (1) | 2 | 2 | 5 | 4 | ||||||||||||
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Total (loss) earnings as defined | (28 | ) | 109 | 22 | 173 | |||||||||||
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Fixed charges: | ||||||||||||||||
Interest expense incurred | 20 | 18 | 42 | 37 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 2 | 6 | ||||||||||||
Interest portion of rental expense (1) | 2 | 2 | 5 | 4 | ||||||||||||
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Total fixed charges | 23 | 21 | 49 | 47 | ||||||||||||
Ratio of earnings to fixed charges | 5.2 | 0.4 | 3.7 | |||||||||||||
Deficiency in the coverage of earnings to fixed charges | 51.0 | |||||||||||||||
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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). |