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, | | Six Months Ended June 30, | |
| TITLE | | 2008 | | 2009 | | 2010 | | 2011 | | 2012 | | 2012 | | 2013 | |
| (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 |
| | $ | 417.0 |
| | $ | 593.0 |
| |
| (B) | Noncontrolling interests, net of taxes | | (3.0 | ) | | (18.0 | ) | | (21.0 | ) | | (14.0 | ) | | (5.0 | ) | | (7.0 | ) | | 5.0 |
| |
| (C) | Fixed charges excluding capitalized interest | | 648.2 |
| | 780.6 |
| | 718.8 |
| | 680.7 |
| | 797.4 |
| | 408.2 |
| | 394.5 |
| |
| (D) | Amortization of previously capitalized interest | | 30.0 |
| | 31.3 |
| | 30.4 |
| | 29.2 |
| | 24.2 |
| | 12.1 |
| | 12.0 |
| |
| (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 |
| | $ | 830.3 |
| | $ | 1,004.5 |
| |
| Fixed Charges | | | | | | | | | | | | | | | |
| (H) | Interest and amortization of debt expense | | $ | 572.5 |
| | $ | 702.3 |
| | $ | 643.4 |
| | $ | 602.0 |
| | $ | 714.7 |
| | $ | 362.3 |
| | $ | 350.5 |
| |
| (I) | Interest factor attributable to rentals | | 65.8 |
| | 72.0 |
| | 69.9 |
| | 73.3 |
| | 77.0 |
| | 43.0 |
| | 42.9 |
| |
| (J) | Preferred dividends of subsidiaries | | 9.9 |
| | 6.3 |
| | 5.5 |
| | 5.4 |
| | 5.7 |
| | 2.9 |
| | 1.1 |
| |
| (K) | Capitalized interest | | 27.5 |
| | 12.1 |
| | 14.0 |
| | 21.6 |
| | 36.6 |
| | 18.6 |
| | 7.9 |
| |
| (L) | Total fixed charges | | $ | 675.7 |
| | $ | 792.7 |
| | $ | 732.8 |
| | $ | 702.3 |
| | $ | 834.0 |
| | $ | 426.8 |
| | $ | 402.4 |
| |
| (M) | Ratio of earnings to fixed charges | | | | 2.58 |
| | 2.16 |
| | 3.19 |
| | 2.21 |
| | 1.95 |
| | 2.50 |
| |
| (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.
