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.