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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| Six months ended |
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| June 30, |
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| June 30, |
|
| June 30, |
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| June 30, |
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|
| 2018 |
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| 2017 |
|
| 2018 |
|
| 2017 |
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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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Earnings before income taxes |
|
| 51 |
|
|
| 47 |
|
|
| 116 |
|
|
| 72 |
|
Add fixed charges: |
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|
|
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|
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|
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Interest expense incurred |
|
| 15 |
|
|
| 16 |
|
|
| 31 |
|
|
| 33 |
|
Amortization of debt expense and discount |
|
| 1 |
|
|
| 1 |
|
|
| 1 |
|
|
| 1 |
|
Interest portion of rental expense (1) |
|
| 2 |
|
|
| 2 |
|
|
| 4 |
|
|
| 4 |
|
Total earnings as defined |
|
| 69 |
|
|
| 66 |
|
|
| 152 |
|
|
| 110 |
|
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense incurred |
|
| 15 |
|
|
| 16 |
|
|
| 31 |
|
|
| 33 |
|
Amortization of debt expense and discount |
|
| 1 |
|
|
| 1 |
|
|
| 1 |
|
|
| 1 |
|
Interest portion of rental expense (1) |
|
| 2 |
|
|
| 2 |
|
|
| 4 |
|
|
| 4 |
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Total fixed charges |
|
| 18 |
|
|
| 19 |
|
|
| 36 |
|
|
| 38 |
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Ratio of earnings to fixed charges |
|
| 3.8 |
|
|
| 3.5 |
|
|
| 4.2 |
|
|
| 2.9 |
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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). |