EX-12 3 ex12.txt EXHIBIT 12 Exhibit 12 INTERNATIONAL PAPER COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollar amounts in millions) (Unaudited)
Three Months Ended For the Years Ended December 31, March 31, ----------------------------------------------------- ------------------ 1999 2000 2001 2002 2003 2003 2004 -------- -------- --------- -------- -------- ------ ------ TITLE A) Earnings (loss) from continuing operations before income taxes and minority interest $ 422.0 $ 701.0 $(1,284.0) $ 342.0 $ 306.0 $125.0 $125.0 B) Minority interest expense, net of taxes (155.0) (228.0) (140.0) (119.0) (111.0) (37.0) (14.0) C) Fixed charges excluding capitalized interest 820.1 1,151.4 1,255.8 1,094.7 1,028.0 258.8 242.2 D) Amortization of previously capitalized interest 17.0 23.5 31.8 43.3 41.4 10.8 10.4 E) Equity in undistributed earnings of affiliates (37.1) 10.0 18.1 26.9 5.0 (1.3) 2.6 -------- -------- --------- -------- -------- ------ ------ F) Earnings (loss) from continuing operations before income taxes, and fixed charges $1,067.0 $1,657.9 $ (118.3) $1,387.9 $1,269.4 $356.3 $366.2 ======== ======== ========= ======== ======== ====== ====== Fixed Charges G) Interest and amortization of debt expense $ 611.6 $ 938.3 $ 1,050.4 $ 891.3 $ 875.1 $210.0 $217.7 H) Interest factor attributable to rentals 75.4 72.5 76.4 88.4 85.8 20.8 21.2 I) Preferred dividends of subsidiaries 133.1 140.6 129.0 115.0 67.1 28.0 3.3 J) Capitalized interest 29.3 25.2 13.2 12.3 8.6 1.6 3.4 -------- -------- --------- -------- -------- ------ ------ K) Total fixed charges $ 849.4 $1,176.6 $ 1,269.0 $1,107.0 $1,036.6 260.4 $245.6 ======== ======== ========= ======== ======== ====== ====== L) Ratio of earnings to fixed charges 1.26 1.41 1.25 1.22 1.37 1.49 ======== ======== ======== ======== ====== ====== M) Deficiency in earnings necessary to cover fixed charges $(1,387.3) =========
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.