Exhibit 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar amounts in millions)
For the Years Ended December 31, | ||||||||||||||||||||||
TITLE | 2008 | 2009 | 2010 | 2011 | 2012 | |||||||||||||||||
(A) | Earnings (loss) from continuing operations before income taxes and equity earnings | $ | (1,153.0 | ) | $ | 1,199.0 | $ | 822.0 | $ | 1,458.0 | $ | 1,024.0 | ||||||||||
(B) | Noncontrolling interests, net of taxes | (3.0 | ) | (18.0 | ) | (21.0 | ) | (14.0 | ) | (5.0 | ) | |||||||||||
(C) | Fixed charges excluding capitalized interest | 648.2 | 780.6 | 718.8 | 680.7 | 797.4 | ||||||||||||||||
(D) | Amortization of previously capitalized interest | 30.0 | 31.3 | 30.4 | 29.2 | 24.2 | ||||||||||||||||
(E) | Equity in undistributed earnings of affiliates | — | — | — | — | — | ||||||||||||||||
(F) | Distributed income of equity investees | 73.0 | 51.0 | 33.0 | 85.6 | — | ||||||||||||||||
(G) | Earnings (loss) from continuing operations before income taxes and fixed charges | $ | (404.8 | ) | $ | 2,043.9 | $ | 1,583.2 | $ | 2,239.5 | $ | 1,840.6 | ||||||||||
Fixed Charges | ||||||||||||||||||||||
(H) | Interest and amortization of debt expense | $ | 572.5 | $ | 702.3 | $ | 643.4 | $ | 602.0 | $ | 714.7 | |||||||||||
(I) | Interest factor attributable to rentals | 65.8 | 72.0 | 69.9 | 73.3 | 77.0 | ||||||||||||||||
(J) | Preferred dividends of subsidiaries | 9.9 | 6.3 | 5.5 | 5.4 | 5.7 | ||||||||||||||||
(K) | Capitalized interest | 27.5 | 12.1 | 14.0 | 21.6 | 36.6 | ||||||||||||||||
(L) | Total fixed charges | $ | 675.7 | $ | 792.7 | $ | 732.8 | $ | 702.3 | $ | 834.0 | |||||||||||
(M) | Ratio of earnings to fixed charges | 2.58 | 2.16 | 3.19 | 2.21 | |||||||||||||||||
(N) | Deficiency in earnings necessary to cover fixed charges | $ | (1,080.5 | ) |
NOTE: Dividends on International Paper's preferred stock are insignificant. As a result, for all periods presented, the ratios of earnings to fixed charges and preferred stock dividends are the same as the ratios of earnings to fixed charges.