EXHIBIT 12 INTERNATIONAL PAPER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLAR AMOUNTS IN MILLIONS) (UNAUDITED) FOR THE YEARS ENDED DECEMBER 31, TITLE 1992 1993 1994 1995 1996 1997 - ----------------------------------------------------------------------------------------------------------------- A) Earnings before income taxes, minority interest, extraordinary item and accounting changes $ 226.0 $ 538.0 $ 715.0 $ 2,028.0 $ 802.0 $ 16.0 B) Less: Minority interest expense, net of taxes (15.0) (36.0) (47.0) (156.0) (169.0) (129.0) C) Add: Fixed charges excluding capitalized interest 325.3 365.3 412.3 605.9 672.4 686.6 D) Add: Amortization of previously capitalized interest 9.9 12.2 12.8 13.0 17.8 20.0 E) Less: Equity in undistributed earnings of affiliates (19.1) (25.9) (49.1) (94.5) 6.2 (40.4) --------- --------- --------- ---------- -------- -------- F) EARNINGS BEFORE INCOME TAXES, MINORITY INTEREST, EXTRAORDINARY ITEM, ACCOUNTING CHANGES AND FIXED CHARGES $ 527.1 $ 853.6 $ 1,044.0 $ 2,396.4 $ 1,329.4 $ 553.2 -------- -------- --------- --------- --------- ------- -------- -------- --------- --------- --------- ------- FIXED CHARGES G) Interest and amortization of debt expense $ 297.1 $ 334.5 $ 371.0 $ 542.3 $ 582.8 $ 593.0 H) Interest factor attributable to rentals 28.2 30.8 41.3 53.0 66.0 70.0 I) Preferred dividends of subsidiary 10.6 23.6 23.6 J) Capitalized Interest 42.0 12.2 18.0 58.0 66.7 61.9 -------- -------- --------- --------- --------- ------- K) TOTAL FIXED CHARGES $ 367.3 $ 377.5 $ 430.3 $ 663.9 $ 739.1 $ 748.5 -------- -------- --------- --------- --------- ------- -------- -------- --------- --------- --------- ------- l) RATIO OF EARNINGS TO FIXED CHARGES 1.44 2.26 2.43 3.61 1.80 -------- -------- --------- --------- --------- -------- -------- --------- --------- --------- m) Deficiency in earnings necessary to cover fixed charges $ 195.3 ------- -------