International Paper (IP) 10-Q 2006 Q3 Quarterly report

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,
		2001			2002			2003			2004			2005			2005			2006
	TITLE
A)	Earnings (loss) from continuing operations before income taxes and minority interest	$	(1,259.1	)	$	264.1		$	198.1		$	662.8		$	530.1		$	717.4		$	(719.0	)
B)	Minority interest expense, net of taxes		(144.0	)		(47.0	)		(83.5	)		(26.6	)		(12.4	)		(8.5	)		(14.5	)
C)	Fixed charges excluding capitalized interest		1,171.1			1,007.4			949.6			865.6			758.7			563.2			557.3
D)	Amortization of previously capitalized interest		31.8			43.3			41.4			42.2			39.7			30.2			28.0
E)	Equity in undistributed earnings of affiliates		14.1			20.3			2.9			(13.4	)		8.5			3.5			(2.4	)
F)	Earnings (loss) from continuing operations before income taxes, and fixed charges	$	(186.1	)	$	1,288.1		$	1,108.5		$	1,530.6		$	1,324.6		$	1,305.8		$	(150.6	)
	Fixed Charges
G)	Interest and amortization of debt expense	$	970.5		$	811.5		$	803.7		$	782.2		$	683.4		$	507.3		$	498.2
H)	Interest factor attributable to rentals		71.7			80.9			78.8			67.9			65.3			48.6			49.5
I)	Preferred dividends of subsidiaries		128.9			115.0			67.1			15.5			10.0			7.3			9.6
J)	Capitalized interest		13.0			11.9			8.0			9.7			13.7			8.3			12.9
K)	Total fixed charges	$	1,184.1		$	1,019.3		$	957.6		$	875.3		$	772.4		$	571.5		$	570.2
L)	Ratio of earnings to fixed charges					1.26			1.16			1.75			1.71			2.28
M)	Deficiency in earnings necessary to cover fixed charges	$	(1,370.2	)																$	(720.8	)

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.