EX-12 5 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

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,    

Nine Months Ended

September 30,

  
          2002     2003     2004     2005     2006     2006     2007  
   TITLE               

A)

    Earnings (loss) from continuing operations before income taxes and minority interest    $ 174.0     $ 89.0     $ 376.0     $ 286.0     $ 3,188.0     $ (530.0 )   $ 1,215.0  

B)

    Minority interest expense, net of taxes      (44.0 )     (79.0 )     (24.0 )     (9.0 )     (17.0 )     (14.0 )     (17.0 )

C)

    Fixed charges excluding capitalized interest      987.7       943.8       859.7       752.0       724.5       548.9       407.3  

D)

    Amortization of previously capitalized interest      42.6       40.8       40.3       39.2       34.8       27.6       20.2  

E)

    Equity in undistributed earnings of affiliates      20.5       3.1       (13.4 )     9.7       (5.8 )     (2.4 )     2.8  
                                                           

F)

   

Earnings (loss) from continuing operations before income taxes and fixed charges

    $ 1,180.8     $ 997.7     $ 1,238.6     $ 1,077.9     $ 3,924.5     $ 30.1     $ 1,628.3  
                                                           
   Fixed Charges               

G)

    Interest and amortization of debt expense    $ 795.9     $ 801.8     $ 780.3     $ 680.8     $ 651.4     $ 497.8     $ 359.9  

H)

    Interest factor attributable to rentals      76.8       74.9       63.9       61.2       60.2       46.4       40.9  

I)

    Preferred dividends of subsidiaries      115.0       67.1       15.5       10.0       12.9       4.7       6.5  

J)

    Capitalized interest      11.9       8.0       9.7       13.7       20.7       12.9       25.4  
                                                           

K)

   

Total fixed charges

    $ 999.6     $ 951.8     $ 869.4     $ 765.7     $ 745.2     $ 561.8     $ 432.7  
                                                           

L)

   

Ratio of earnings to fixed charges

      1.18       1.05       1.42       1.41       5.27         3.76  
                                                     

M)

   

Deficiency in earnings necessary to cover fixed charges

              $ (531.7 )  
                       

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.