INTERNATIONAL PAPER CO /NEW/ - FORM 10-Q - EX-12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS - November 6, 2009

Attached files

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10-Q - FORM 10-Q - INTERNATIONAL PAPER CO /NEW/d10q.htm
EX-11 - STATEMENT OF COMPUTATION OF PER SHARE EARNINGS - INTERNATIONAL PAPER CO /NEW/dex11.htm
EX-32 - CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 - INTERNATIONAL PAPER CO /NEW/dex32.htm
EX-31.1 - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 - INTERNATIONAL PAPER CO /NEW/dex311.htm
EX-31.2 - CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 - INTERNATIONAL PAPER CO /NEW/dex312.htm
EX-10.1 - AMENDMENT NO.4 TO UNFUNDED SUPPLEMENTAL RETIREMENT PLAN FOR SENIOR MANAGERS - INTERNATIONAL PAPER CO /NEW/dex101.htm

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, 		 
         2004     2005     2006     2007     2008     2008     2009  

TITLE

               

A)

   Earnings (loss) from continuing operations before income taxes    $ 376.0      $ 286.0      $ 3,188.0      $ 1,654.0      $ (1,153.0 )(1)    $ 765.0      $ 1,627.0   

B)

   Noncontrolling interests, net of taxes      (24.0 )      (9.0 )      (17.0 )      (24.0 )      (3.0 )      (15.0 )      (14.0 ) 

C)

   Fixed charges excluding capitalized interest      859.7        752.0        724.5        552.8        648.2        428.0        587.1   

D)

   Amortization of previously capitalized interest      40.3        39.2        34.8        27.2        30.0        22.5        19.9   

E)

   Equity in undistributed earnings of affiliates      (13.4 )      9.7        (5.8 )      (10.7 )      —   (1)      —          —     

F)

   Distributed income of equity investees      —          —          —          —          73.0        —          —     
                                                          

G)

   Earnings (loss) from continuing operations before income taxes and fixed charges    $ 1,238.6      $ 1,077.9      $ 3,924.5      $ 2,199.3      $ (404.8 )    $ 1,200.5      $ 2,220.0   
                                                          

Fixed Charges

               

H)

   Interest and amortization of debt expense    $ 780.3      $ 680.8      $ 651.4      $ 487.0      $ 572.5      $ 374.2      $ 530.4   

I)

   Interest factor attributable to rentals      63.9        61.2        60.2        55.4        65.8        46.6        51.8   

J)

   Preferred dividends of subsidiaries      15.5        10.0        12.9        10.4        9.9        7.2        4.9   

K)

   Capitalized interest      9.7        13.7        20.7        29.9        27.5        18.6        9.0   
                                                          

L)

   Total fixed charges    $ 869.4      $ 765.7      $ 745.2      $ 582.7      $ 675.7      $ 446.6      $ 596.1   
                                                          

M)

   Ratio of earnings to fixed charges      1.42        1.41        5.27        3.77          2.69        3.72   
                                                    

N)

   Deficiency in earnings necessary to cover fixed charges            $ (1,080.50 )     
                      

 

(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.

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