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, | ||||||||||||||||||||||
TITLE | 2003 | 2004 | 2005 | 2006 | 2007 | |||||||||||||||||
A) Earnings (loss) before income taxes, minority interest, extraordinary items and accounting changes | $ | 89.0 | $ | 376.0 | $ | 286.0 | $ | 3,188.0 | $ | 1,654.0 | ||||||||||||
B) Minority interest expense, net of taxes | (79.0 | ) | (24.0 | ) | (9.0 | ) | (17.0 | ) | (24.0 | ) | ||||||||||||
C) Fixed charges excluding capitalized interest | 943.8 | 859.7 | 752.0 | 724.5 | 552.8 | |||||||||||||||||
D) Amortization of previously capitalized interest | 40.8 | 40.3 | 39.2 | 34.8 | 27.2 | |||||||||||||||||
E) Equity in undistributed earnings of affiliates | 3.1 | (13.4 | ) | 9.7 | (5.8 | ) | (10.7 | ) | ||||||||||||||
F) Earnings before income taxes, extraordinary items, accounting changes and fixed charges | $ | 997.7 | $ | 1,238.6 | $ | 1,077.9 | $ | 3,924.5 | $ | 2,199.3 | ||||||||||||
Fixed Charges | ||||||||||||||||||||||
G) Interest and amortization of debt expense | $ | 801.8 | $ | 780.3 | $ | 680.8 | $ | 651.4 | $ | 487.0 | ||||||||||||
H) Interest factor attributable to rentals | 74.9 | 63.9 | 61.2 | 60.2 | 55.4 | |||||||||||||||||
I) Preferred dividends of subsidiaries | 67.1 | 15.5 | 10.0 | 12.9 | 10.4 | |||||||||||||||||
J) Capitalized interest | 8.0 | 9.7 | 13.7 | 20.7 | 29.9 | |||||||||||||||||
K) Total fixed charges | $ | 951.8 | $ | 869.4 | $ | 765.7 | $ | 745.2 | $ | 582.7 | ||||||||||||
L) Ratio of earnings to fixed charges | 1.05 | 1.42 | 1.41 | 5.27 | 3.77 |
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.