EX-12 4 d412717dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

MASCO CORPORATION

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

 

    

(Dollars in Millions)

 
    

 

 

 

Nine

Months

Ended

Sep. 30,

  

  

  

  

     Year Ended December 31,   
     2012      2011     2010     2009     2008     2007  

Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges:

             

Income (loss) from continuing operations before income taxes

   $ 79       $ (472   $ (741   $ (136   $ (134   $ 867   

Deduct equity in undistributed loss (earnings) of fifty-percent-or-less-owned companies

     —           —          —          —          (1     (2

Add interest on indebtedness, net

     190         250        249        224        228        258   

Add amortization of debt expense

     5         7        7        5        4        5   

Add estimated interest factor for rentals

     23         33        36        44        51        55   

Earnings (loss) before income taxes, noncontrolling interest, net, fixed charges and preferred stock dividends

   $ 297       $ (182   $ (449   $ 137      $ 148      $ 1,183   

Fixed Charges:

             

Interest on indebtedness

   $ 190       $ 249      $ 246      $ 221      $ 228      $ 259   

Amortization of debt expense

     5         7        7        5        4        5   

Estimated interest factor for rentals

     23         33        36        44        51        55   

Total fixed charges

   $ 218       $ 289      $ 289      $ 270      $ 283      $ 319   

Preferred stock dividends(a)

   $ —         $ —        $ —        $ —        $ —        $ —     
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Combined fixed charges and preferred stock dividends

   $ 218       $ 289      $ 289      $ 270      $ 283      $ 319   

Ratio of earnings to fixed charges

     1.4         (0.6     (1.6     0.5        0.5        3.7   

Ratio of earnings to combined fixed charges and preferred stock dividends

     1.4         (0.6     (1.6     0.5        0.5        3.7   

Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (b)

     1.7         1.1        0.9        1.5        2.4        4.2   

 

(a) Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company.
(b) Excludes the 2012 pre-tax charge for legal settlements, net of $74 million; the 2011 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $494 million and litigation expense of $9 million; the 2010 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $698 million and non-cash, pre-tax impairment charges for financial investments of $34 million; the 2009 non-cash, pre-tax charge for goodwill impairment of $262 million; non-cash, pre-tax impairment charge for financial investments of $10 million and litigation expense of $7 million; 2008 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $415 million, financial investments of $58 million and litigation expense of $9 million; and the 2007 non-cash, pre-tax impairment charges for goodwill and other intangible assets of $119 million and the non-cash, pre-tax charge for financial investments of $22 million.