EX-12 4 ip-20180930exhibit12comput.htm EXHIBIT 12 Exhibit


Exhibit 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar amounts in millions)
 
 
 
 
 
 
 
Nine Months Ended
September 30,
TITLE
 
2013
 
2014
 
2015
 
2016
 
2017
 
2017
 
2018
(A)
Earnings (loss) from continuing operations before income taxes and equity earnings
 
$
1,092.0

 
$
734.0

 
$
1,132.0

 
$
795.0

 
$
848.0

 
$
651.0

 
$
1,399.0

(B)
Noncontrolling interests, net of taxes
 
17.0

 
19.0

 
21.0

 
2.0

 
—

 
—

 
(3.0
)
(C)
Fixed charges excluding capitalized interest
 
701.1

 
691.0

 
695.9

 
744.5

 
810.2

 
626.2

 
605.7

(D)
Amortization of previously capitalized interest
 
20.4

 
19.3

 
16.0

 
14.7

 
15.2

 
11.2

 
9.7

(E)
Distributed income of equity investees
 
—

 
56.1

 
35.0

 
59.7

 
136.5

 
131.4

 
130.9

(F)
Earnings (loss) from continuing operations before income taxes and fixed charges
 
$
1,830.5

 
$
1,519.4

 
$
1,899.9

 
$
1,615.9

 
$
1,809.9

 
$
1,419.8

 
$
2,142.3

Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(G)
Interest and amortization of debt expense
 
$
648.3

 
$
643.1

 
$
643.5

 
$
694.5

 
$
757.9

 
$
571.2

 
$
546.9

(H)
Interest factor attributable to rentals
 
52.8

 
47.9

 
52.4

 
50.0

 
52.3

 
55.0

 
58.8

(I)
Preferred dividends of subsidiaries
 
1.1

 
—

 
—

 
—

 
—

 
—

 
—

(J)
Capitalized interest
 
17.0

 
23.0

 
24.8

 
28.2

 
24.8

 
18.0

 
25.5

(K)
Total fixed charges
 
$
719.2

 
$
714.0

 
$
720.7

 
$
772.7

 
$
835.0

 
$
644.2

 
$
631.2

(L)
Ratio of earnings to fixed charges
 
2.55

 
2.13

 
2.64

 
2.09

 
2.17


2.20

 
3.39



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.