Exhibit 12.1
Domtar Corporation
Computation of ratio of earnings to fixed charges
(In millions of dollars, unless otherwise noted)
Three months ended | Nine months ended | |||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Available earnings: | ||||||||||||||||
Earnings before income taxes and equity earnings | 28 | 89 | 1 | 215 | ||||||||||||
Add fixed charges: | ||||||||||||||||
Interest expense incurred | 19 | 20 | 61 | 57 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 3 | 7 | ||||||||||||
Interest portion of rental expense (1) | 3 | 2 | 8 | 6 | ||||||||||||
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Total earnings as defined | 51 | 112 | 73 | 285 | ||||||||||||
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Fixed charges: | ||||||||||||||||
Interest expense incurred | 19 | 20 | 61 | 57 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 3 | 7 | ||||||||||||
Interest portion of rental expense (1) | 3 | 2 | 8 | 6 | ||||||||||||
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Total fixed charges | 23 | 23 | 72 | 70 | ||||||||||||
Ratio of earnings to fixed charges | 2.2 | 4.9 | 1.0 | 4.1 | ||||||||||||
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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). |