EXHIBIT 12
INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar Amounts in Millions)
(Unaudited)
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For the Years Ended December 31, |
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2000 |
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2001 |
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2002 |
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2003 |
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2004 |
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A) |
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Earnings (loss) before income taxes, minority interest, extraordinary items and accounting changes |
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$ |
652.0 |
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$ |
(1,330.0 |
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$ |
306.0 |
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$ |
292.0 |
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$ |
746.0 |
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B) |
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Minority interest expense, net of taxes |
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(228.0 |
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(139.6 |
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(118.0 |
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(111.0 |
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(62.0 |
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C) |
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Fixed charges excluding capitalized interest |
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1,150.6 |
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1,254.6 |
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1,093.9 |
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1,028.6 |
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941.9 |
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D) |
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Amortization of previously capitalized interest |
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23.5 |
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31.8 |
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43.3 |
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41.4 |
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42.2 |
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E) |
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Equity in undistributed earnings of affiliates |
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10.0 |
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18.1 |
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26.9 |
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5.0 |
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(15.3 |
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F) |
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Earnings (loss) before income taxes, extraordinary items, accounting changes and fixed charges |
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$ |
1,608.1 |
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$ |
(165.1 |
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$ |
1,352.1 |
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$ |
1,256.0 |
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$ |
1,652.8 |
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Fixed Charges |
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G) |
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Interest and amortization of debt expense |
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$ |
937.8 |
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$ |
1,049.8 |
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$ |
891.1 |
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$ |
874.9 |
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$ |
840.0 |
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H) |
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Interest factor attributable to rentals |
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72.2 |
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75.8 |
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87.8 |
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86.6 |
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86.3 |
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I) |
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Preferred dividends of subsidiaries |
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140.6 |
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129.0 |
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115.0 |
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67.1 |
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15.6 |
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J) |
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Capitalized interest |
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24.4 |
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13.2 |
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12.3 |
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8.6 |
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10.9 |
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K) |
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Total fixed charges |
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$ |
1,175.0 |
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$ |
1,267.8 |
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$ |
1,106.2 |
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$ |
1,037.2 |
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$ |
952.8 |
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L) |
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Ratio of earnings to fixed charges |
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1.37 |
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1.22 |
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1.21 |
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1.73 |
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M) |
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Deficiency in earnings necessary to cover fixed charges |
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$ |
(1,432.9 |
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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.