Exhibit 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| (Dollar amounts in millions) | | For the Years Ended December 31, | |
| TITLE | | 2001 | | | 2002 | | | 2003 | | | 2004 | | | 2005 | |
(A) Earnings (loss) before income taxes, minority interest, extraordinary items and accounting changes | | $ | (1,226.0 | ) | | $ | 340.0 | | | $ | 285.0 | | | $ | 724.0 | | | $ | 586.0 | |
(B) Minority interest expense, net of taxes | | | (144.0 | ) | | | (47.0 | ) | | | (83.5 | ) | | | (26.6 | ) | | | (12.4 | ) |
(C) Fixed charges excluding capitalized interest | | | 1,171.2 | | | | 1,007.5 | | | | 949.6 | | | | 865.6 | | | | 758.9 | |
(D) Amortization of previously capitalized interest | | | 31.8 | | | | 43.3 | | | | 41.4 | | | | 42.2 | | | | 39.7 | |
(E) Equity in undistributed earnings of affiliates | | | 14.1 | | | | 20.3 | | | | 2.9 | | | | (13.4 | ) | | | 8.5 | |
| | |
(F) Earnings (loss) before income taxes, extraordinary items, accounting changes and fixed charges | | $ | (152.9 | ) | | $ | 1,364.1 | | | $ | 1,195.4 | | | $ | 1,591.8 | | | $ | 1,380.7 | |
| | |
Fixed Charges | | | | | | | | | | | | | | | | | | | | |
(G) Interest and amortization of debt expense | | $ | 970.5 | | | $ | 811.5 | | | $ | 803.7 | | | $ | 782.1 | | | $ | 683.4 | |
(H) Interest factor attributable to rentals | | | 71.7 | | | | 81.0 | | | | 78.8 | | | | 68.0 | | | | 65.5 | |
(I) Preferred dividends of subsidiaries | | | 129.0 | | | | 115.0 | | | | 67.1 | | | | 15.5 | | | | 10.0 | |
(J) Capitalized interest | | | 13.0 | | | | 11.9 | | | | 8.0 | | | | 9.7 | | | | 13.7 | |
| | |
(K) Total fixed charges | | $ | 1,184.2 | | | $ | 1,019.4 | | | $ | 957.6 | | | $ | 875.3 | | | $ | 772.6 | |
| | |
(L) Ratio of earnings to fixed charges | | | | | | | 1.34 | | | | 1.25 | | | | 1.82 | | | | 1.79 | |
| | |
(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.
