Exhibit 12.1
Domtar Corporation
Computation of ratio of earnings to fixed charges
(In millions of dollars, unless otherwise noted)
| | | | | | | | | | | | | | | | | | | | |
| | Year ended December 31, 2012 | | | Year ended December 31, 2011 | | | Year ended December 31, 2010 | | | Year ended December 31, 2009 | | | Year ended December 31, 2008 | |
| | $ | | | $ | | | $ | | | $ | | | $ | |
Available earnings: | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) before income taxes and equity earnings | | | 236 | | | | 505 | | | | 448 | | | | 490 | | | | (570 | ) |
Add fixed charges: | | | | | | | | | | | | | | | | | | | | |
Interest expense incurred | | | 75 | | | | 76 | | | | 144 | | | | 115 | | | | 128 | |
Amortization of debt expense and discount | | | 8 | | | | 7 | | | | 11 | | | | 10 | | | | 5 | |
Interest portion of rental expense(1) | | | 11 | | | | 11 | | | | 11 | | | | 12 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | |
Total earnings (loss) as defined | | | 330 | | | | 599 | | | | 614 | | | | 627 | | | | (424 | ) |
| | | | | | | | | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | |
Interest expense incurred | | | 75 | | | | 76 | | | | 144 | | | | 115 | | | | 128 | |
Amortization of debt expense and discount | | | 8 | | | | 7 | | | | 11 | | | | 10 | | | | 5 | |
Interest portion of rental expense(1) | | | 11 | | | | 11 | | | | 11 | | | | 12 | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | | 94 | | | | 94 | | | | 166 | | | | 137 | | | | 146 | |
Ratio of earnings to fixed charges | | | 3.5 | | | | 6.4 | | | | 3.7 | | | | 4.6 | | | | | |
Deficiency in the coverage of earnings to fixed charges | | | | | | | | | | | | | | | | | | | 570 | |
| | | | | | | | | | | | | | | | | | | | |
(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). |