EX-12 3 ip-20140630exhibit12comput.htm EXHIBIT 12 ip-20140630exhibit12computationofrati.htm


Exhibit 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar amounts in millions)
 
 
 
 
 
 
 
Six Months Ended
June 30,
 
TITLE
 
2009
 
2010
 
2011
 
2012
 
2013
 
2013
 
2014
 
(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

 
$
593.0

 
$
1.0

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

 
5.0

 
7.0

 
(C)
Fixed charges excluding capitalized interest
 
780.6

 
718.8

 
680.7

 
797.4

 
721.1

 
394.5

 
369.0

 
(D)
Amortization of previously capitalized interest
 
31.3

 
30.4

 
29.2

 
24.2

 
24.7

 
12.0

 
13.1

 
(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

 
$
1,004.5

 
$
390.1

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

 
$
643.4

 
$
602.0

 
$
714.7

 
$
648.3

 
$
350.5

 
$
326.7

 
(I)
Interest factor attributable to rentals
 
72.0

 
69.9

 
73.3

 
77.0

 
71.7

 
42.9

 
42.3

 
(J)
Preferred dividends of subsidiaries
 
6.3

 
5.5

 
5.4

 
5.7

 
1.1

 
1.1

 
—

 
(K)
Capitalized interest
 
12.1

 
14.0

 
21.6

 
36.6

 
17.0

 
7.9

 
11.6

 
(L)
Total fixed charges
 
$
792.7

 
$
732.8

 
$
702.3

 
$
834.0

 
$
738.1

 
$
402.4

 
$
380.6

 
(M)
Ratio of earnings to fixed charges
 
2.58

 
2.16

 
3.19

 
2.21

 
2.18

 
2.50

 
1.02

 


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.