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, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Available earnings: | ||||||||||||||||
Earnings (loss) before income taxes and equity earnings | 53 | (51 | ) | 107 | (27 | ) | ||||||||||
Add fixed charges: | ||||||||||||||||
Interest expense incurred | 25 | 20 | 49 | 42 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 2 | 2 | ||||||||||||
Interest portion of rental expense (1) | 3 | 2 | 5 | 5 | ||||||||||||
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Total earnings (loss) as defined | 82 | (28 | ) | 163 | 22 | |||||||||||
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Fixed charges: | ||||||||||||||||
Interest expense incurred | 25 | 20 | 49 | 42 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 2 | 2 | ||||||||||||
Interest portion of rental expense (1) | 3 | 2 | 5 | 5 | ||||||||||||
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Total fixed charges | 29 | 23 | 56 | 49 | ||||||||||||
Ratio of earnings to fixed charges | 2.8 | 2.9 | 0.4 | |||||||||||||
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). |