EX-12 16 d456978dex12.htm EX-12 EX-12

Exhibit 12

MASCO CORPORATION

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

 

    (Dollars in Millions)  
    Year Ended December 31,  
    2012     2011     2010     2009     2008  

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

         

Income (loss) from continuing operations before income taxes

  $ 42      $ (472   $ (741   $ (136   $ (134

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

                                (1

Add interest on indebtedness, net

    249        250        249        224        228   

Add amortization of debt expense

    7        7        7        5        4   

Add estimated interest factor for rentals

    31        33        36        44        51   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

  $ 329      $ (182   $ (449   $ 137      $ 148   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed Charges:

         

Interest on indebtedness

  $ 248      $ 249      $ 246      $ 221      $ 228   

Amortization of debt expense

    7        7        7        5        4   

Estimated interest factor for rentals

    31        33        36        44        51   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

  $ 286      $ 289      $ 289      $ 270      $ 283   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Preferred stock dividends(a)

  $      $      $      $      $   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Combined fixed charges and preferred stock dividends

  $ 286      $ 289      $ 289      $ 270      $ 283   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

    1.2        (0.6     (1.6     0.5        0.5   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

    1.2        (0.6     (1.6     0.5        0.5   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    1.6        1.1        0.9        1.5        2.4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(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 non-cash, pre-tax impairment charge for other intangible assets of $42 million and litigation expense of $77 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 charge for financial investments of $34 million; the 2009 non-cash, pre-tax impairment charge for goodwill of $262 million; non-cash, pre-tax impairment charge for financial investments of $10 million and litigation expense of $7 million; and the 2008 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $467 million, financial investments of $58 million and litigation expense of $9 million.