EX-12 9 exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ip-20131231exhibit12ratioofearningstofixedcharges.htm


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,
 
 
TITLE
 
2009

 
2010

 
2011

 
2012

 
2013

 
(A)
Earnings (loss) from continuing operations before income taxes and equity earnings
 
$
1,199.0


$
822.0


$
1,458.0


$
1,024.0


$
849.0


(B)
Noncontrolling interests, net of taxes
 
(18.0
)
 
(21.0
)
 
(14.0
)
 
(5.0
)
 
17.0

 
(C)
Fixed charges excluding capitalized interest
 
780.6

 
718.8

 
680.7

 
797.4

 
721.1

 
(D)
Amortization of previously capitalized interest
 
31.3

 
30.4

 
29.2

 
24.2

 
24.7

 
(E)
Equity in undistributed earnings of affiliates
 
—


—


—


—


—


(F)
Distributed income of equity investees
 
51.0

 
33.0

 
85.6

 
—

 
—

 
(G)
Earnings (loss) from continuing operations before income taxes and fixed charges
 
$
2,043.9

 
$
1,583.2

 
$
2,239.5

 
$
1,840.6

 
$
1,611.8

 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
(H)
Interest and amortization of debt expense
 
$
702.3

 
$
643.4

 
$
602.0

 
$
714.7

 
$
648.3

 
(I)
Interest factor attributable to rentals
 
72.0

 
69.9

 
73.3

 
77.0

 
71.7

 
(J)
Preferred dividends of subsidiaries
 
6.3

 
5.5

 
5.4

 
5.7

 
1.1

 
(K)
Capitalized interest
 
12.1

 
14.0

 
21.6

 
36.6

 
17.0

 
(L)
Total fixed charges
 
$
792.7

 
$
732.8

 
$
702.3

 
$
834.0

 
$
738.1

 
(M)
Ratio of earnings to fixed charges
 
 
 
2.16

 
3.19

 
2.21

 
2.18

 
(N)
Deficiency in earnings necessary to cover fixed charges
 
$
1,251.2

 
 
 
 
 
 
 
 
 

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.