Attached files
file | filename |
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10-Q - 10-Q - MASCO CORP /DE/ | a2018q2masco10-q06302018.htm |
EX-32 - EXHIBIT 32 - MASCO CORP /DE/ | exhibit3206302018.htm |
EX-31.B - EXHIBIT 31.B - MASCO CORP /DE/ | exhibit31b06302018.htm |
EX-31.A - EXHIBIT 31.A - MASCO CORP /DE/ | exhibit31a06302018.htm |
Exhibit 12
MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in Millions) | ||||||||||||||||||||||||
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: | ||||||||||||||||||||||||
Income from continuing operations before income taxes (A) | $ | 512 | $ | 884 | $ | 833 | $ | 689 | $ | 507 | $ | 386 | ||||||||||||
Deduct equity in undistributed (earnings) loss of fifty-percent-or-less-owned companies | (2 | ) | (1 | ) | (2 | ) | (2 | ) | 2 | (16) | ||||||||||||||
Add interest on indebtedness, net | 77 | 167 | 185 | 222 | 221 | 230 | ||||||||||||||||||
Add amortization of debt expense | 2 | 4 | 5 | 5 | 5 | 6 | ||||||||||||||||||
Add estimated interest factor for rentals | 11 | 22 | 21 | 19 | 33 | 31 | ||||||||||||||||||
Earnings before income taxes, noncontrolling interest, fixed charges and preferred stock dividends | $ | 600 | $ | 1,076 | $ | 1,042 | $ | 933 | $ | 768 | $ | 637 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest on indebtedness | $ | 79 | $ | 170 | $ | 190 | $ | 223 | $ | 221 | $ | 229 | ||||||||||||
Amortization of debt expense | 2 | 4 | 5 | 5 | 5 | 6 | ||||||||||||||||||
Estimated interest factor for rentals | 11 | 22 | 21 | 19 | 33 | 31 | ||||||||||||||||||
Total fixed charges | $ | 92 | $ | 196 | $ | 216 | $ | 247 | $ | 259 | $ | 266 | ||||||||||||
Preferred stock dividends (B) | — | — | — | — | — | — | ||||||||||||||||||
Combined fixed charges and preferred stock dividends | $ | 92 | $ | 196 | $ | 216 | $ | 247 | $ | 259 | $ | 266 | ||||||||||||
Ratio of earnings to fixed charges | 6.5 | 5.5 | 4.8 | 3.8 | 3.0 | 2.4 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 6.5 | 5.5 | 4.8 | 3.8 | 3.0 | 2.4 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (C) | 6.5 | 5.5 | 4.8 | 3.8 | 2.9 | 2.4 |
(A) | Income from continuing operations before income taxes for the years ended December 31, 2013, 2014, and 2015 has not been restated for the adoption of ASC 606. |
(B) | Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company. |
(C) | Excludes the 2014 litigation settlement income of $9 million. |
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