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.