Attached files
file | filename |
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10-Q - 10-Q - MASCO CORP /DE/ | a2017q3masco10-q09302017.htm |
EX-32 - EXHIBIT 32 - MASCO CORP /DE/ | exhibit3209302017.htm |
EX-31.B - EXHIBIT 31.B - MASCO CORP /DE/ | exhibit31b09302017.htm |
EX-31.A - EXHIBIT 31.A - MASCO CORP /DE/ | exhibit31a09302017.htm |
Exhibit 12
MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in Millions) | ||||||||||||||||||||||||
Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 724 | $ | 830 | $ | 689 | $ | 507 | $ | 386 | $ | 155 | ||||||||||||
Deduct equity in undistributed (earnings) loss of fifty-percent-or-less-owned companies | (1 | ) | (2 | ) | (2 | ) | 2 | (16) | — | |||||||||||||||
Add interest on indebtedness, net | 130 | 185 | 222 | 221 | 230 | 249 | ||||||||||||||||||
Add amortization of debt expense | 3 | 5 | 5 | 5 | 6 | 7 | ||||||||||||||||||
Add estimated interest factor for rentals | 15 | 21 | 19 | 33 | 31 | 31 | ||||||||||||||||||
Earnings before income taxes, noncontrolling interest, fixed charges and preferred stock dividends | $ | 871 | $ | 1,039 | $ | 933 | $ | 768 | $ | 637 | $ | 442 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest on indebtedness | $ | 130 | $ | 190 | $ | 223 | $ | 221 | $ | 229 | $ | 248 | ||||||||||||
Amortization of debt expense | 3 | 5 | 5 | 5 | 6 | 7 | ||||||||||||||||||
Estimated interest factor for rentals | 15 | 21 | 19 | 33 | 31 | 31 | ||||||||||||||||||
Total fixed charges | $ | 148 | $ | 216 | $ | 247 | $ | 259 | $ | 266 | $ | 286 | ||||||||||||
Preferred stock dividends (A) | — | — | — | — | — | — | ||||||||||||||||||
Combined fixed charges and preferred stock dividends | $ | 148 | $ | 216 | $ | 247 | $ | 259 | $ | 266 | $ | 286 | ||||||||||||
Ratio of earnings to fixed charges | 5.9 | 4.8 | 3.8 | 3.0 | 2.4 | 1.5 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 5.9 | 4.8 | 3.8 | 3.0 | 2.4 | 1.5 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (B) | 5.9 | 4.8 | 3.8 | 2.9 | 2.4 | 1.7 |
(A) Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company.
(B) Excludes the 2014 litigation settlement income of $9 million; the 2012 non-cash, pre-tax impairment charge for other intangible assets of $42 million and litigation expense of $1 million.
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