Exhibit 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar amounts in millions)
Six Months Ended June 30, | ||||||||||||||||||||||||||||||
TITLE | 2010 | 2011 | 2012 | 2013 | 2014 | 2014 | 2015 | |||||||||||||||||||||||
(A) | Earnings (loss) from continuing operations before income taxes and equity earnings | $ | 719.0 | $ | 1,395.0 | $ | 967.0 | $ | 1,228.0 | $ | 872.0 | $ | 13.0 | $ | 672.0 | |||||||||||||||
(B) | Noncontrolling interests, net of taxes | (21.0 | ) | (14.0 | ) | (5.0 | ) | 17.0 | 19.0 | 7.0 | 11.0 | |||||||||||||||||||
(C) | Fixed charges excluding capitalized interest | 700.4 | 661.8 | 782.0 | 705.5 | 694.2 | 360.8 | 355.8 | ||||||||||||||||||||||
(D) | Amortization of previously capitalized interest | 30.4 | 29.2 | 24.2 | 24.7 | 23.9 | 13.1 | 10.2 | ||||||||||||||||||||||
(E) | Distributed income of equity investees | 33.0 | 85.6 | — | — | 56.1 | — | — | ||||||||||||||||||||||
(F) | Earnings (loss) from continuing operations before income taxes and fixed charges | $ | 1,461.8 | $ | 2,157.6 | $ | 1,768.2 | $ | 1,975.2 | $ | 1,665.2 | $ | 393.9 | $ | 1,049.0 | |||||||||||||||
Fixed Charges | ||||||||||||||||||||||||||||||
(G) | Interest and amortization of debt expense | $ | 643.4 | $ | 602.0 | $ | 714.7 | $ | 648.3 | $ | 642.9 | $ | 326.7 | $ | 323.2 | |||||||||||||||
(H) | Interest factor attributable to rentals | 51.5 | 54.4 | 61.6 | 56.1 | 51.3 | 34.1 | 32.6 | ||||||||||||||||||||||
(I) | Preferred dividends of subsidiaries | 5.5 | 5.4 | 5.7 | 1.1 | — | — | — | ||||||||||||||||||||||
(J) | Capitalized interest | 14.0 | 21.6 | 36.6 | 17.0 | 23.2 | 11.6 | 14.0 | ||||||||||||||||||||||
(K) | Total fixed charges | $ | 714.4 | $ | 683.4 | $ | 818.6 | $ | 722.5 | $ | 717.4 | $ | 372.4 | $ | 369.8 | |||||||||||||||
(L) | Ratio of earnings to fixed charges | 2.05 | 3.16 | 2.16 | 2.73 | 2.32 | 1.06 | 2.84 | ||||||||||||||||||||||
(M) | Deficiency in earnings necessary to cover fixed charges |
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.