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, | |||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 2004 | 2005 | ||||||||||||||||||||||||
TITLE | ||||||||||||||||||||||||||||||
A) | Earnings (loss) from continuing operations before income taxes and minority interest | $ | 592.2 | $ | (1,226.0 | ) | $ | 339.5 | $ | 285.0 | $ | 724.0 | $ | 530.0 | $ | 751.0 | ||||||||||||||
B) | Minority interest expense, net of taxes | (183.7 | ) | (144.0 | ) | (47.0 | ) | (83.5 | ) | (26.6 | ) | (20.9 | ) | (8.5 | ) | |||||||||||||||
C) | Fixed charges excluding capitalized interest | 1,066.6 | 1,171.2 | 1,007.5 | 949.6 | 865.6 | 653.0 | 561.6 | ||||||||||||||||||||||
D) | Amortization of previously capitalized interest | 23.5 | 31.8 | 43.3 | 41.4 | 42.2 | 33.0 | 30.2 | ||||||||||||||||||||||
E) | Equity in undistributed earnings of affiliates | 16.5 | 14.1 | 20.3 | 2.9 | (13.4 | ) | (2.8 | ) | 3.5 | ||||||||||||||||||||
F) | Earnings (loss) from continuing operations before income taxes and fixed charges | $ | 1,515.1 | $ | (152.9 | ) | $ | 1,363.6 | $ | 1,195.4 | $ | 1,591.8 | $ | 1,192.3 | $ | 1,337.8 | ||||||||||||||
Fixed Charges | ||||||||||||||||||||||||||||||
G) | Interest and amortization of debt expense | $ | 857.2 | $ | 970.5 | $ | 811.5 | $ | 803.7 | $ | 782.1 | $ | 591.6 | $ | 507.3 | |||||||||||||||
H) | Interest factor attributable to rentals | 68.8 | 71.7 | 81.0 | 78.8 | 68.0 | 51.3 | 48.8 | ||||||||||||||||||||||
I) | Preferred dividends of subsidiaries | 140.6 | 129.0 | 115.0 | 67.1 | 15.5 | 10.1 | 5.5 | ||||||||||||||||||||||
J) | Capitalized interest | 20.7 | 13.0 | 11.9 | 8.0 | 9.7 | 6.4 | 8.3 | ||||||||||||||||||||||
K) | Total fixed charges | $ | 1,087.3 | $ | 1,184.2 | $ | 1,019.4 | 957.6 | $ | 875.3 | 659.4 | $ | 569.9 | |||||||||||||||||
L) | Ratio of earnings to fixed charges | 1.39 | 1.34 | 1.25 | 1.82 | 1.81 | 2.35 | |||||||||||||||||||||||
M) | Deficiency in earnings necessary to cover fixed charges | $ | (1,337.1 | ) | ||||||||||||||||||||||||||
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.