Exhibit 12.1
Domtar Corporation
Computation of ratio of earnings to fixed charges
(In millions of dollars, unless otherwise noted)
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| Three months ended |
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| Nine months ended |
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| September 30, |
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| September 30, |
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| September 30, |
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| September 30, |
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|
| 2015 |
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| 2014 |
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| 2015 |
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| 2014 |
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| $ |
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| $ |
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| $ |
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| $ |
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Available earnings: |
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(Loss) earnings before income taxes |
|
| (3 | ) |
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| 95 |
|
|
| 79 |
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|
| 202 |
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Add fixed charges: |
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Interest expense incurred |
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| 21 |
|
|
| 24 |
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|
| 70 |
|
|
| 73 |
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Amortization of debt expense and discount |
|
| 4 |
|
|
| 1 |
|
|
| 6 |
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|
| 3 |
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Interest portion of rental expense (1) |
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| 2 |
|
|
| 2 |
|
|
| 6 |
|
|
| 7 |
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Total earnings as defined |
|
| 24 |
|
|
| 122 |
|
|
| 161 |
|
|
| 285 |
|
Fixed charges: |
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|
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Interest expense incurred |
|
| 21 |
|
|
| 24 |
|
|
| 70 |
|
|
| 73 |
|
Amortization of debt expense and discount |
|
| 4 |
|
|
| 1 |
|
|
| 6 |
|
|
| 3 |
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Interest portion of rental expense (1) |
|
| 2 |
|
|
| 2 |
|
|
| 6 |
|
|
| 7 |
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Total fixed charges |
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| 27 |
|
|
| 27 |
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|
| 82 |
|
|
| 83 |
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Ratio of earnings to fixed charges |
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| 0.9 |
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|
| 4.5 |
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|
| 2.0 |
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|
| 3.4 |
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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). |