INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar amounts in millions)
(Unaudited)
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Nine Months Ended
For the Years Ended December 31, September 30,
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TITLE 1995 1996 1997 1998 1999 1999 2000
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<S> <C> <C> <C> <C> <C> <C> <C>
A) Earnings before income taxes,
minority interest, extraordinary items
and accounting changes $ 2,742.0 $ 939.0 $ 143.0 $ 429.0 $ 448.0 $ 300.0 $ 1,226.0
B) Minority interest expense,
net of taxes (166.0) (180.0) (140.0) (87.0) (163.0) (117.0) (188.0)
C) Fixed charges excluding
capitalized interest 740.3 802.1 826.6 866.7 820.9 611.0 790.9
D) Amortization of previously
capitalized interest 29.6 34.2 37.0 38.8 17.0 12.6 15.6
E) Equity in undistributed
earnings of affiliates (94.5) 6.2 (40.4) 23.7 (41.6) (24.6) (2.4)
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F) Earnings before income taxes,
extraordinary items, accounting
changes and fixed charges $ 3,251.4 $ 1,601.5 $ 826.2 $ 1,271.2 $ 1,081.3 $ 782.0 $ 1,842.1
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Fixed Charges
G) Interest and amortization of debt
expense $ 664.9 $ 699.5 $ 720.0 $ 716.9 $ 611.5 $ 456.8 $ 632.7
H) Interest factor attributable to rentals 64.8 79.0 83.0 80.7 76.3 54.8 52.9
I) Preferred dividends of subsidiary 10.6 23.6 23.6 69.1 133.1 99.4 105.3
J) Capitalized interest 66.9 71.2 71.6 53.4 29.3 27.0 18.9
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K) Total fixed charges $ 807.2 $ 873.3 $ 898.2 $ 920.1 $ 850.2 $ 638.0 $ 809.8
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L) Ratio of earnings to fixed charges 4.03 1.83 1.38 1.27 1.23 2.27
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M) Deficiency in earnings necessary
to cover fixed charges $ (72.0)
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