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, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
$ | $ | $ | $ | |||||||||||||
Available earnings: | ||||||||||||||||
Earnings before income taxes and equity earnings | 95 | 28 | 202 | 1 | ||||||||||||
Add fixed charges: | ||||||||||||||||
Interest expense incurred | 24 | 19 | 73 | 61 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 3 | 3 | ||||||||||||
Interest portion of rental expense(1) | 2 | 3 | 7 | 8 | ||||||||||||
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Total earnings as defined | 122 | 51 | 285 | 73 | ||||||||||||
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Fixed charges: | ||||||||||||||||
Interest expense incurred | 24 | 19 | 73 | 61 | ||||||||||||
Amortization of debt expense and discount | 1 | 1 | 3 | 3 | ||||||||||||
Interest portion of rental expense(1) | 2 | 3 | 7 | 8 | ||||||||||||
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Total fixed charges | 27 | 23 | 83 | 72 | ||||||||||||
Ratio of earnings to fixed charges | 4.5 | 2.2 | 3.4 | 1.0 | ||||||||||||
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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). |