EX-12 4 d370675dex12.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)

 

     For the Years Ended December 31,     Six Months Ended
June 30,		  

TITLE

    2007     2008     2009     2010     2011     2011     2012  

A) Earnings (loss) from continuing operations before income taxes and equity earnings

    $ 1,654.0      $ (1,153.0 )(1)    $ 1,199.0 (1)    $ 822.0 (1)    $ 1,458.0 (1)    $ 661.0 (1)    $ 417.0 (1) 

B) Noncontrolling interests, net of taxes

      (24.0 )      (3.0 )      (18.0 )      (21.0 )      (14.0 )      (13.0 )      (7.0 ) 

C) Fixed charges excluding capitalized interest

      552.8        648.2        780.6        718.8        680.7        340.6        408.2   

D) Amortization of previously capitalized interest

      27.2        30.0        31.3        30.4        29.2        14.6        12.1   

E) Equity in undistributed earnings of affiliates

      (10.7 )      0 (1)      0 (1)      0 (1)      0 (1)      0 (1)      0 (1) 

F) Distributed income of equity investees

      0        73.0        51.0        33.0        85.6        41.9        0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

    $ 2,199.3      $ (404.8 )    $ 2,043.9      $ 1,583.2      $ 2,239.5      $ 1,045.1      $ 830.3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

               

H) Interest and amortization of debt expense

    $ 487.0      $ 572.5      $ 702.3      $ 643.4      $ 602.0      $ 300.2      $ 362.3   

I) Interest factor attributable to rentals

      55.4        65.8        72.0        69.9        73.3        37.7        43.0   

J) Preferred dividends of subsidiaries

      10.4        9.9        6.3        5.5        5.4        2.7        2.9   

K) Capitalized interest

      29.9        27.5        12.1        14.0        21.6        8.2        18.6   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

L) Total fixed charges

    $ 582.7      $ 675.7      $ 792.7      $ 732.8      $ 702.3      $ 348.8      $ 426.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

M) Ratio of earnings to fixed charges

      3.77          2.58        2.16        3.19        3.00        1.95   
  

 

 

      

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

N) Deficiency in earnings necessary to cover fixed charges

      $ (1,080.5 )           
    

 

 

            

 

(1) Beginning in 2008, earnings from continuing operations are reported before equity earnings. Therefore, equity earnings are no longer adjusted out of the total in Line E.

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.