Exhibit 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar amounts in millions)
(Unaudited)
| For the Years Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| 1999 | 2000 | 2001 | 2002 | 2003 | 2003 | 2004 | ||||||||||||||||||||||||
| TITLE | ||||||||||||||||||||||||||||||
| A) | Earnings (loss) from continuing operations before income taxes and minority interest | $ | 422.0 | $ | 654.0 | $ | (1,327.0 | ) | $ | 307.0 | $ | 292.0 | $ | 285.0 | $ | 538.0 | ||||||||||||||
| B) | Minority interest expense, net of taxes | (155.0 | ) | (228.0 | ) | (139.6 | ) | (119.0 | ) | (111.0 | ) | (90.0 | ) | (49.0 | ) | |||||||||||||||
| C) | Fixed charges excluding capitalized interest | 820.1 | 1,150.6 | 1,254.6 | 1,093.9 | 1,028.6 | 782.3 | 707.4 | ||||||||||||||||||||||
| D) | Amortization of previously capitalized interest | 17.0 | 23.5 | 31.8 | 43.3 | 41.4 | 31.1 | 33.0 | ||||||||||||||||||||||
| E) | Equity in undistributed earnings of affiliates | (37.1 | ) | 10.0 | 18.1 | 26.9 | 5.0 | 2.4 | (4.9 | ) | ||||||||||||||||||||
| F) | Earnings (loss) from continuing operations before income taxes and fixed charges | $ | 1,067.0 | $ | 1,610.1 | $ | (162.1 | ) | $ | 1,352.1 | $ | 1,256.0 | $ | 1,010.8 | $ | 1,224.5 | ||||||||||||||
| Fixed Charges | ||||||||||||||||||||||||||||||
| G) | Interest and amortization of debt expense | $ | 611.6 | $ | 937.8 | $ | 1,049.8 | $ | 891.1 | $ | 874.9 | $ | 659.6 | $ | 636.6 | |||||||||||||||
| H) | Interest factor attributable to rentals | 75.4 | 72.2 | 75.8 | 87.8 | 86.6 | 62.4 | 60.6 | ||||||||||||||||||||||
| I) | Preferred dividends of subsidiaries | 133.1 | 140.6 | 129.0 | 115.0 | 67.1 | 60.3 | 10.2 | ||||||||||||||||||||||
| J) | Capitalized interest | 29.3 | 24.4 | 13.2 | 12.3 | 8.6 | 5.1 | 7.4 | ||||||||||||||||||||||
| K) | Total fixed charges | $ | 849.4 | $ | 1,175.0 | $ | 1,267.8 | $ | 1,106.2 | $ | 1,037.2 | $ | 787.4 | $ | 714.8 | |||||||||||||||
| L) | Ratio of earnings to fixed charges | 1.26 | 1.37 | 1.22 | 1.21 | 1.28 | 1.71 | |||||||||||||||||||||||
| M) | Deficiency in earnings necessary to cover fixed charges | $ | (1,429.9 | ) | ||||||||||||||||||||||||||
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.
