EX-12 3 k66076ex12.txt COMPUTATION OF EARNIGNS EXHIBIT 12 MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS) ---------------------------------------------------------------- NINE MONTHS ENDED YEAR ENDED DECEMBER 31 SEPT. 30, ------------------------------------------------------ 2001 2000 1999 1998 1997 1996 -------- ---------- ---------- ---------- -------- -------- EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES: Income before income taxes* $109,200 $ 893,400 $ 904,100 $ 905,500 $733,800 $575,600 Deduct/add equity in undistributed (earnings)/loss of fifty-percent-or- less-owned companies 190 (9,640) (18,720) (24,070) (19,470) (12,310) Add interest on indebtedness, net 177,110 193,000 121,520 115,700 94,780 78,790 Add amortization of debt expense 5,490 2,430 1,350 2,130 2,310 1,400 Add estimated interest factor for rentals 17,290 18,760 16,080 11,430 9,270 7,120 -------- ---------- ---------- ---------- -------- -------- Earnings before income taxes and fixed charges $309,280 $1,097,950 $1,024,330 $1,010,690 $820,690 $650,600 ======== ========== ========== ========== ======== ======== FIXED CHARGES: Interest on indebtedness $184,070 $ 202,630 $ 129,860 $ 119,750 $ 97,910 $ 81,250 Amortization of debt expense 5,490 2,430 1,350 2,130 2,310 1,400 Estimated interest factor for rentals 17,290 18,760 16,080 11,430 9,270 7,120 -------- ---------- ---------- ---------- -------- -------- $206,850 $ 223,820 $ 147,290 $ 133,310 $109,490 $ 89,770 ======== ========== ========== ========== ======== ======== Ratio of earnings to fixed charges 1.5 4.9 7.0 7.6 7.5 7.2 === === === === === ===
* Income before income taxes for the nine months ended September 30, 2001 includes a $530 million pre-tax, non-cash charge for the write-down of certain investments.