International Paper (IP) 10-Q 2017 Q3 Quarterly report

Exhibit 12

INTERNATIONAL PAPER COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS

(Dollar amounts in millions)

													Nine Months Ended September 30,
TITLE		2012			2013		2014		2015		2016		2016		2017
(A)	Earnings (loss) from continuing operations before income taxes and equity earnings	$	967.0		$	1,228.0	$	872.0	$	1,266.0	$	956.0	$	676.0	$	718.0
(B)	Noncontrolling interests, net of taxes	(5.0		)	17.0		19.0		21.0		2.0		3.0		—
(C)	Fixed charges excluding capitalized interest	782.0			705.5		694.2		700.2		748.2		568.0		630.7
(D)	Amortization of previously capitalized interest	24.2			24.7		23.9		20.7		19.5		14.6		12.7
(E)	Distributed income of equity investees	—			—		56.1		35.0		59.7		58.0		131.4
(F)	Earnings (loss) from continuing operations before income taxes and fixed charges	$	1,768.2		$	1,975.2	$	1,665.2	$	2,042.9	$	1,785.4	$	1,319.6	$	1,492.8
Fixed Charges
(G)	Interest and amortization of debt expense	$	714.7		$	648.3	$	642.9	$	643.5	$	694.5	$	513.8	$	571.2
(H)	Interest factor attributable to rentals	61.6			56.1		51.3		56.7		53.7		54.2		59.5
(I)	Preferred dividends of subsidiaries	5.7			1.1		—		—		—		—		—
(J)	Capitalized interest	36.6			17.0		23.2		24.8		28.2		20.7		18.0
(K)	Total fixed charges	$	818.6		$	722.5	$	717.4	$	725.0	$	776.4	$	588.7	$	648.7
(L)	Ratio of earnings to fixed charges	2.16			2.73		2.32		2.82		2.30		2.24		2.30

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.