EX-12 6 ex12.txt EXHIBIT 12 Exhibit 12 INTERNATIONAL PAPER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollar amounts in millions) (Unaudited)
Three Months Ended For the Years Ended December 31, March 31, ----------------------------------------------------- ------------------ TITLE 1998 1999 2000 2001 2002 2002 2003 ----------------------------------------------- -------- -------- -------- --------- -------- ------ ------ Earnings (loss) before income taxes, minority interest, extraordinary items and accounting changes $ 429.0 $ 448.0 $ 723.0 $(1,265.0) $ 371.0 $139.0 $133.0 Minority interest expense, net of taxes (87.0) (163.0) (238.0) (147.0) (130.0) (31.0) (40.0) Fixed charges excluding capitalized interest 866.7 820.9 1,151.5 1,256.0 1,095.3 280.5 259.2 Amortization of previously capitalized interest 38.8 17.0 23.5 31.8 43.3 11.2 10.8 Equity in undistributed earnings of affiliates 23.7 (41.6) 5.6 13.5 21.5 2.7 (2.9) -------- -------- -------- --------- -------- ------ ------ Earnings (loss) before income taxes, extraordinary items, accounting changes and fixed charges $1,271.2 $1,081.3 $1,665.6 $ (110.7) $1,401.1 $402.4 $360.1 ======== ======== ======== ========= ======== ====== ====== Fixed Charges Interest and amortization of debt expense $ 716.9 $ 611.5 $ 938.1 $ 1,050.3 $ 891.3 $231.0 $210.0 Interest factor attributable to rentals 80.7 76.3 72.8 76.7 89.0 20.8 21.2 Preferred dividends of subsidiaries 69.1 133.1 140.6 129.0 115.0 28.7 28.0 Capitalized interest 53.4 29.3 25.2 13.2 12.3 2.5 1.6 -------- -------- -------- --------- -------- ------ ------ Total fixed charges $ 920.1 $ 850.2 $1,176.7 $ 1,269.2 $1,107.6 $283.0 $260.8 ======== ======== ======== ========= ======== ====== ====== Ratio of earnings to fixed charges 1.38 1.27 1.42 1.26 1.42 1.38 ======== ======== ======== ======== ====== ====== Deficiency in earnings necessary to cover fixed charges $(1,379.9) =========
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.