Attached files
| file | filename |
|---|---|
| 10-Q - FORM 10-Q - MASCO CORP /DE/ | k50714e10vq.htm |
| EXCEL - IDEA: XBRL DOCUMENT - MASCO CORP /DE/ | Financial_Report.xls |
| EX-32 - EX-32 - MASCO CORP /DE/ | k50714exv32.htm |
| EX-31.A - EX-31.A - MASCO CORP /DE/ | k50714exv31wa.htm |
| EX-31.B - EX-31.B - MASCO CORP /DE/ | k50714exv31wb.htm |
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, | |||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Earnings Before Income Taxes,
Preferred Stock Dividends
and Fixed Charges: |
||||||||||||||||||||||||
Income (loss) from continuing
operations before income taxes |
$ | 98 | $ | (777 | ) | $ | (151 | ) | $ | (193 | ) | $ | 876 | $ | 891 | |||||||||
Deduct equity in undistributed loss
(earnings) of fifty-percent-or-
less-owned companies |
— | — | — | (1 | ) | (2 | ) | (1 | ) | |||||||||||||||
Add interest on indebtedness, net |
189 | 249 | 224 | 228 | 258 | 241 | ||||||||||||||||||
Add amortization of debt expense |
5 | 7 | 5 | 4 | 5 | 4 | ||||||||||||||||||
Add estimated interest factor for
rentals |
25 | 36 | 44 | 51 | 55 | 52 | ||||||||||||||||||
Earnings before income taxes,
noncontrolling interest, net,
fixed charges and preferred
stock dividends |
$ | 317 | $ | (485 | ) | $ | 122 | $ | 89 | $ | 1,192 | $ | 1,187 | |||||||||||
Fixed Charges: |
||||||||||||||||||||||||
Interest on indebtedness |
$ | 186 | $ | 246 | $ | 221 | $ | 228 | $ | 259 | $ | 241 | ||||||||||||
Amortization of debt expense |
5 | 7 | 5 | 4 | 5 | 4 | ||||||||||||||||||
Estimated interest factor for
rentals |
25 | 36 | 44 | 51 | 55 | 52 | ||||||||||||||||||
Total fixed charges |
$ | 216 | $ | 289 | $ | 270 | $ | 283 | $ | 319 | $ | 297 | ||||||||||||
Preferred stock dividends(a) |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Combined fixed charges and
preferred stock dividends |
$ | 216 | $ | 289 | $ | 270 | $ | 283 | $ | 319 | $ | 297 | ||||||||||||
Ratio of earnings to fixed charges |
1.5 | (1.7 | ) | 0.5 | 0.3 | 3.7 | 4.0 | |||||||||||||||||
Ratio of earnings to combined fixed
charges and preferred stock
dividends |
1.5 | (1.7 | ) | 0.5 | 0.3 | 3.7 | 4.0 | |||||||||||||||||
Ratio of earnings to combined fixed
charges and preferred stock dividends
excluding certain items (b) |
1.5 | 0.9 | 1.5 | 2.2 | 4.2 | 5.4 | ||||||||||||||||||
| (a) | Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company. | |
| (b) | Excludes the 2011 litigation expense of $6 million and non-cash pre-tax impairment charge for other intangible assets of $7 million; the 2010 non-cash pre-tax impairment charge for goodwill and other intangible assets of $721 million and non-cash, pre-tax impairment charge 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 $467 million, financial investments of $58 million and litigation expense of $9 million; 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; and the 2006 non-cash, pre-tax impairment charges for goodwill and financial investments of $317 million and $101 million, respectively, and the pre-tax income related to the Behr litigation settlement of $1 million. |
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