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.